5 Mistakes South African Businesses Make With DIY Accounting (And How to Avoid Them)

We Simplify Tax & Accounting – because Advice First counts

1. Relying on Spreadsheets Instead of Cloud Accounting

The Mistake: Many small businesses use Excel for invoicing, expenses, and even tax returns.

Why It Hurts: Manual errors, version control issues, and no real-time visibility can lead to poor decisions and SARS penalties.

The Fix: Switch to Xero — a cloud-based accounting system that automates reconciliations, stores documents securely, and connects to your bank.

Bonus: Mitax offers FREE Xero setup and training plus free Xero Accounting for 6 months T&C’s apply.
Terms and conditions (Must be a 12 months contract with Mitax, Xero Starter Plan only, Xero Starter must be paid for after month 6 or reduce to a Xero Ledger Plan.

2. Not Keeping Personal and Business Finances Separate

The Mistake: Using one account for personal and business expenses.

Why It Hurts: Creates messy records, inaccurate tax filings, and limits your ability to access funding or sell your business.

The Fix: Open a separate business bank account and track all transactions using proper accounting software.

3. Missing SARS Deadlines

The Mistake: Forgetting to file VAT, PAYE, or Provisional Tax on time.

Why It Hurts: Late submissions lead to auto-penalties, interest, and in some cases, SARS account freezes.

The Fix: Use an accountant to stay ahead of deadlines, or set up reminders and filing schedules.

At Mitax, we manage your compliance calendar — so nothing gets missed.

4. Misunderstanding What Can Be Claimed as a Deduction

The Mistake: Claiming personal expenses (like groceries or holidays) as business costs.

Why It Hurts: Triggers SARS audits and could result in penalties or criminal charges.

The Fix: Keep detailed records and get professional advice on what’s deductible and what’s not.

5. Thinking an Accountant is “Too Expensive”

The Mistake: Assuming you’ll save money by doing it all yourself.

Why It Hurts: You may overpay tax, miss deductions, or waste time better spent on growing your business.

The Fix: Think of your accountant as a strategic partner — not just a bookkeeper. With Mitax, you get advice, automation, and peace of mind.

Need Help? We’re Just a Call Away.

Book a free 15-minute consult to see how we can simplify your accounting and compliance.

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