If you’re starting your own business, here's what to ask your accountant...

Four Questions To Ask Your Accountant

1. Should I register for VAT?

You don’t have to register for VAT if your turnover is less than R1-million, but it depends on your business. If you’re dealing directly with the public, being able to undercut your competitor by 14 percent is a big advantage, but if you’re dealing with a corporate, they usually prefer to work with a tax invoice.

2. Should I register for turnover tax?

Small businesses now qualify for a flat 10 percent turnover tax, but this doesn’t apply to consulting or personal service companies. It can also be a disadvantage if you have high input costs as a turnover tax may work out higher.

3. Should I register a company?

There are many ways to run a business: as a sole proprietor, closed corporation or a company. The best option will depend on the type of business you run.

4. Should I open a separate bank account?

Small business accounts can be expensive, so if you don’t have too many monthly transactions stick to a personal account.