Running a business in South Africa comes with no shortage of daily decisions. You weigh suppliers, manage teams, review budgets—and somewhere in the middle of it all, you’re expected to navigate tax compliance, financial reporting, and SARS deadlines too. For many small and medium-sized business owners, the question isn’t if accounting is important—it’s how to handle it.

Should you take the DIY route, using spreadsheets or cloud software to manage things yourself? Or is it better to hire an accountant and hand over the reins to a professional?

It’s a question I’ve heard countless times over the years. I remember a meeting with a business owner in Pretoria—a driven, hands-on entrepreneur who had built her catering company from the ground up. She’d done her own bookkeeping for years using Excel and a shoebox full of receipts. When SARS requested supporting documents for her VAT return, she spent a week digging through papers and still missed the deadline. Her exact words were, “I didn’t think I needed an accountant—until I really needed one.”

This post isn’t here to convince you one way or another. Instead, it’s designed to help you understand the costs, benefits, and timing of both approaches so you can make a choice that truly supports your business goals.

The True Cost of DIY Accounting

Doing your own accounting often seems like the smart, budget-friendly choice. And for many business owners just starting out, it is. There’s a certain satisfaction in being hands-on with your finances. But as your business grows, so do the responsibilities—and that’s where things can get complicated.

The most common misunderstanding I see is this: business owners count the visible cost of hiring an accountant (fees and retainers), but overlook the invisible costs of doing it all themselves.

Let’s look at some of those hidden costs:

• Time – Time spent entering transactions, preparing reports, or trying to understand VAT rules is time not spent growing your business. If you’re spending ten hours a month on your books, what’s that costing you in missed opportunities?

• Risk – One small mistake on a tax return or misunderstanding SARS requirements can lead to penalties or audits. It’s not about intent—it’s about accuracy.

• Missed savings – Many business owners don’t know which expenses are deductible or how to optimise their business structure for tax efficiency. That’s money left on the table.

A client in Johannesburg once told me, “I thought I was saving R2,000 a month by not hiring an accountant. Turns out I was losing R10,000 a year in overpaid taxes and late submission penalties.”

DIY accounting works well in certain scenarios—but only when you’re confident in the rules, have time to manage the details, and are operating within a relatively simple structure. Otherwise, the real cost of doing it yourself might be far more than you realise.

When DIY Makes Sense

There’s no denying that doing your own accounting can be a smart move—if the circumstances are right. In fact, for some small business owners, especially those just starting out, DIY accounting might be all they need in the early stages.

Take Sipho, a freelance web developer based in Port Elizabeth. With just a handful of monthly invoices and minimal expenses, he keeps track of everything using Google Sheets. Once a year, he consults a registered tax practitioner to handle his submission. It’s simple, low-cost, and works perfectly for his current setup.

The key here is simplicity. DIY accounting makes sense when your business has:

• A low transaction volume – If you’re not dealing with stock, staff, or multiple payment methods, keeping things in order is much more manageable.

• A straightforward business model – Freelancers, consultants, or sole traders with single income streams tend to benefit most.

• No employees – Once you start dealing with payroll, UIF, PAYE, and IRP5s, the margin for error increases significantly.

• Good discipline – If you’re the type to log receipts as they come in, reconcile your bank accounts regularly, and keep an eye on tax updates, you might not need full-time help—yet.

But even when DIY is the right fit, it’s important to know where your limits are. Many small business owners begin confidently, but find that as the business scales, the complexity quickly outpaces their accounting knowledge.

Ask yourself:

• Am I spending more time on admin than I should?

• Do I feel confident preparing financial reports or submitting to SARS on my own?

• Do I have someone to call when I hit a roadblock?

And here’s a tip for those in-between: consider a hybrid model. Manage the day-to-day yourself, but get a professional to review your books quarterly or annually. It’s a cost-effective way to keep your accounts on track while still maintaining control.

DIY accounting has its place—especially in the early days or when your operations are simple. But as the numbers grow, so does the need for accuracy, structure, and expert insight.

What an Accountant Actually Does

To some business owners, an accountant is just the person you call at the end of the year to “sort out your taxes.” But the truth is, a good accountant does far more than file returns—they can be a strategic partner in the growth and stability of your business.

Let’s take the case of Thandi, who owns a small but growing printing business in Bloemfontein. For years, she relied on a bookkeeper to keep her invoices in order and handled the rest herself. But as she began landing corporate clients, her cash flow became unpredictable and she wasn’t sure how to budget for VAT or manage short-term debt. That’s when she brought in an accountant.

Within three months, her new accountant had:

• Reorganised her chart of accounts to show real profit margins,

• Set up a cash flow projection model,

• Registered her for VAT (which she hadn’t realised was already a requirement),

• And helped her understand the impact of each business decision on her tax bill.

Accountants don’t just deal with numbers. They bring clarity to the chaos. Here’s a breakdown of the core services a professional accountant can provide:

• Tax strategy and planning – Ensuring your business is not only compliant, but also taking advantage of legal deductions and incentives.

• Business structure advice – Helping you choose the most tax-efficient setup (sole prop, Pty Ltd, etc.).

• Financial reporting – Producing clear, professional financial statements for funders, investors, or internal planning.

• Compliance support – Navigating SARS, CIPC, UIF, PAYE, and other statutory requirements without the guesswork.

• Payroll management – Making sure your team is paid correctly and on time, with all reporting handled.

This isn’t just about ticking boxes. It’s about running your business with a clearer view of where you are, what’s working, and where you’re heading.

A strong accountant becomes an extension of your team. Not someone who only shows up in April, but a trusted advisor who helps you make better business decisions all year long.

Ask yourself:

• Do I really understand what my business numbers are telling me?

• Am I confident I’m not missing opportunities to save or grow?

• Do I have a financial sounding board I can trust?

If the answer to any of those is “not really,” then an accountant may be exactly what your business needs to move forward with confidence.

The Right Time to Hire an Accountant

Just like you wouldn’t hire a full-time team before you’ve landed your first client, hiring an accountant doesn’t need to happen on day one. But there is a tipping point—and recognising it early can save your business from costly mistakes.

A good rule of thumb? When your business starts growing beyond your spreadsheet’s capabilities, it’s time to bring in a professional.

Here are some clear signs that the DIY approach may no longer be serving you:

• You’re registering for VAT – Once your turnover crosses R1 million, VAT registration becomes compulsory. With it comes the responsibility of tracking input and output VAT, filing returns on time, and ensuring everything reconciles.

• You’re hiring employees – PAYE, UIF, SDL, and IRP5s are not for the faint-hearted. Managing payroll requires accuracy, up-to-date compliance knowledge, and systems that can scale with your team.

• You’re applying for funding or tenders – Most financial institutions and corporate procurement departments will ask for up-to-date, professional financial statements. An Excel file won’t cut it.

• You’ve entered a new growth phase – Whether you’re expanding into new regions, introducing new product lines, or partnering with other businesses, growth brings complexity. And complexity needs clarity.

I worked with a couple in Durban who ran a boutique home décor shop. They handled everything themselves until they decided to launch an e-commerce arm. Within three months, they were dealing with online payments, courier invoices, cross-provincial sales, and stock management across two locations. It wasn’t long before they felt overwhelmed.

Bringing in an accountant didn’t just relieve the pressure—it gave them real-time data and strategic guidance that helped them price better, manage cash flow, and stay compliant as they grew.

Ask yourself:

• Is your business more complex than it was six months ago?

• Are you spending more time trying to understand your numbers than using them?

• Are you confident your systems could withstand a SARS audit?

Hiring an accountant isn’t just about outsourcing admin—it’s about gaining a partner who helps you manage risk, unlock savings, and scale with confidence.

How to Choose the Right Accountant

Hiring an accountant is a smart step—but hiring the right accountant is essential. Not all accountants are equally equipped to understand your industry, your challenges, or the way you prefer to do business.

Think of it like hiring a new team member: you want someone who understands your goals, fits your culture, and brings experience that fills a gap you can’t cover on your own.

Here’s what to look for when choosing an accountant for your SME:

1. Relevant Qualifications and Registration

Always work with someone registered with a recognised body such as:

• SAICA (South African Institute of Chartered Accountants)

• SAIPA (South African Institute of Professional Accountants)

• SAIBA (Southern African Institute for Business Accountants)

These bodies ensure members follow strict ethical guidelines and continue their professional development.

2. Experience with SMEs

You want someone who understands the realities of running a small to medium-sized business in South Africa—not just the textbook theory. Ask:

• Have you worked with businesses in my sector?

• What size clients do you typically assist?

• Can you assist with both tax and advisory services?

3. Clear, Transparent Pricing

Avoid vague or unpredictable billing. A good accountant will explain their pricing clearly, whether it’s monthly retainers, per-project rates, or hourly billing. Know what’s included—and what’s not.

4. Proactive Communication

You shouldn’t have to chase your accountant for updates or wait until year-end to hear from them. Look for someone who:

• Checks in regularly.

• Alerts you to important deadlines.

• Advises on changes in tax law that could impact you.

5. Willingness to Educate

The best accountants don’t just “do the job”—they help you understand your numbers. They explain things in plain language, empowering you to make better financial decisions.

I once had a client in Mpumalanga who said, “I’ve had three accountants before, but this is the first one who actually explained what my cash flow statement meant.” That’s the kind of relationship that creates long-term financial health.

Questions to Ask Before You Hire:

• What’s your process for onboarding a new client?

• Will I have a dedicated point of contact?

• How do you handle SARS correspondence?

• What accounting systems do you support?

Choosing the right accountant is like hiring a co-pilot. You’re still flying the plane—but now you’ve got someone watching the instruments, managing the route, and helping you avoid turbulence.

Conclusion: Making the Smart Call for Your Business

There’s no universal answer to the question of whether to hire an accountant or go the DIY route—because no two businesses are exactly the same.

If your business is small, simple, and you’ve got the time and discipline to manage your finances, then DIY accounting can absolutely work—at least for now. But as soon as things start to grow in size, complexity, or ambition, the stakes change. And that’s when a professional accountant becomes more than just a helpful service—they become a key part of your business’s long-term success.