Muofhe Business Accountants

10/10/2026

Advise that I will never get tired to give.

09/10/2026

Profit Is Not Cash: Why Profitable Businesses Still Run Out of Money

Your business made R100,000 profit this month, but you don't have enough money to pay salaries. How is that possible?

This is a reality many South African SMEs face.

A business can be profitable on paper and still struggle to pay suppliers, employees, SARS and other monthly expenses.

Here's a simple example:

Your business invoices clients R200,000 and records R150,000 in expenses.

Profit: R50,000

But what happens when clients only pay after 60 days, while salaries, rent and suppliers must be paid immediately?

You have profit, but no cash!

Here are 5 ways to avoid this situation:

- Monitor cash flow weekly not just your bank balance.

- Follow up on unpaid invoices before they become overdue.

- Set aside money for VAT, PAYE and other SARS obligations.

- Negotiate better payment terms with customers and suppliers.

- Prepare monthly management accounts and cash flow forecasts.

Remember, profit measures business performance, but cash flow determines whether your business can survive.

A profitable business without proper cash flow management can still close its doors.

Business owners, which is more challenging in your business: making a profit or collecting money from customers on time?

Let's discuss in the comments.

09/10/2026

Is your salary Taxed?

08/10/2026

Never listen to advises of people who says don't pay tax.

08/10/2026

SBC vs Normal Company Tax: What Is the Difference?

Two companies can make the same profit but pay different amounts of tax. Here's why!

In South Africa, not all companies are taxed the same way. Understanding the difference could save your business thousands of rands.

1️⃣ Normal Company Tax

Most companies pay a flat 27% corporate income tax on their taxable profits, regardless of how much profit they make.

2️⃣ Small Business Corporation (SBC) Tax

Qualifying SBCs benefit from progressive tax rates, meaning lower levels of taxable income are taxed at reduced rates.

For the 2026/27 tax year:

✅ R0 – R99,000: 0%

✅ R99,001 – R365,000: 7%

✅ R365,001 – R550,000: 21%

✅ Above R550,000: 27%

These rates apply progressively to the relevant portions of taxable income.

Let's compare a company earning R300,000 in taxable profit:

- Normal Company: R81,000 tax
- Qualifying SBC: R14,070 tax
- Potential tax saving: R66,930!

But not every small company qualifies!

SBC qualification depends on several SARS requirements, including turnover, shareholders, investment income and the nature of business activities.

The question is: Is your company paying the correct amount of tax, or are you missing out on legitimate tax benefits?

Business owners, did you know about the SBC tax benefits? Share your thoughts below!

07/10/2026

06/10/2026

Tax Planning Is Not Tax Avoidance: What SMEs Can Legally Do

Paying tax is part of doing business. Paying more tax than legally required doesn’t have to be.

Many SME owners only think about tax when a SARS deadline approaches. Effective tax planning should happen throughout the year.

Here are legal ways businesses can manage their tax position:

✅ Claim legitimate business expenses supported by proper records.
✅ Understand whether your business qualifies for Small Business Corporation (SBC)tax rates.
✅ Keep accurate records of assets and claim allowable wear-and-tear deductions.
✅ Plan provisional tax payments based on realistic taxable income.
✅ Structure remuneration and business transactions with proper tax advice.
✅ Keep personal and business expenses separate.

Tax avoidance or evasion involves crossing legal boundaries. Tax planning means understanding the rules and using legitimate provisions available to your business.

Don’t wait for tax season to start planning.

Does your business have a tax plan — or do you simply calculate tax when it’s due?

05/10/2026

Tax Planning Is Not Tax Avoidance: What SMEs Can Legally Do

Paying tax is part of doing business. Paying more tax than legally required doesn’t have to be.

Many SME owners only think about tax when a SARS deadline approaches. Effective tax planning should happen throughout the year.

Here are legal ways businesses can manage their tax position:

✅ Claim legitimate business expenses supported by proper records.
✅ Understand whether your business qualifies for Small Business Corporation (SBC) tax rates.
✅ Keep accurate records of assets and claim allowable wear-and-tear deductions.
✅ Plan provisional tax payments based on realistic taxable income.
✅ Structure remuneration and business transactions with proper tax advice.
✅ Keep personal and business expenses separate.

Tax avoidance or evasion involves crossing legal boundaries. Tax planning means understanding the rules and using legitimate provisions available to your business.

Don’t wait for tax season to start planning.

Does your business have a tax plan — or do you simply calculate tax when it’s due?

05/10/2026

Sad story on PAYE

03/10/2026

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