How to choose an accountant for your small business in South Africa
Choose an accountant on four things: a recognised professional body, SARS tax practitioner registration, a written scope and fee, and a named person who answers you. Everything else is secondary.
In short
- Anyone who gives tax advice or completes tax returns for a fee must be registered with a SARS-recognised controlling body and with SARS. Ask for the body and the registration number.
- A designation tells you what someone has qualified in, not whether they suit your business. Only a registered auditor can sign an audit opinion, and most small businesses do not need one.
- Ask for a written scope, a fee and a named person before you hire. Vague answers on those three are the clearest warning sign.
- Match the accountant to your stage: books and VAT first, then management accounts and tax planning, then CFO-level support.
What a small business needs an accountant for
An accountant does four jobs for an owner-managed business: keeps the books right, files what SARS requires (VAT, payroll, income tax), prepares the year-end financial statements, and tells you what the numbers mean. The first job can sit with a bookkeeper (see accountant vs bookkeeper). The other three need someone qualified, and the fourth is where an accountant earns their fee. Our finance function paper shows how the need changes as a business grows.
Which designation should they hold?
South Africa has several accounting bodies. The bodies below all appear on SARS’s list of recognised controlling bodies for tax practitioners.
| Designation | Body | What it generally means |
|---|---|---|
| CA(SA) | SAICA | Chartered accountant. Can go on to register as an auditor and sign audit opinions. |
| PA(SA) | SAIPA | Professional accountant. Works in accounting, tax and advisory for businesses. Does not sign audit opinions. |
| BAP(SA) | CIBA | Business Accountant in Practice. A designation for accountants working in practice. |
| ACCA | ACCA | Chartered Certified Accountant. A UK-based international body, useful for businesses with UK ties. |
| CIMA (ACMA, FCMA) | CIMA | Management accounting: costing, budgeting and performance. |
| Tax practitioner | SAIT or another controlling body, plus SARS | Registered to give tax advice and complete returns for others. |
A designation is a floor, not a verdict. A CA(SA) who has never worked with a restaurant is not automatically better for your restaurant than a PA(SA) who has done fifty. Ask about experience with businesses of your size and type.
Check the tax practitioner basics
Under the Tax Administration Act, a tax practitioner must register with both a recognised controlling body and SARS. Before you hire, ask three things: which body they belong to, their SARS tax practitioner registration number, and whether they are in good standing. Then confirm with the body. Also ask how they will access your SARS profile. A practitioner is linked to your eFiling profile. You should never need to hand over your own password.
Ten questions to ask before you hire
- Who will do my work? Ask for a named person, not “the team”.
- Which professional body are you a member of, and what is your SARS practitioner number?
- What exactly is in the scope? Books, VAT, payroll, income tax, year-end statements, advice.
- What is the fee, and is it fixed? Ask what is excluded and how extra work is quoted.
- Which accounting software do you work in? See Xero or Sage.
- How often will I get reports, and what will they show? Monthly management accounts are the minimum for a growing business.
- Do you work with businesses like mine? Ask for the sector and the size.
- How quickly do you respond? Get a number of working days.
- What happens if SARS audits or queries me? See SARS audit, verification and objections.
- Do you perform audits? If you need one, you need a registered auditor. TBL Accounting does not perform audits.
Red flags
- No engagement letter or written scope.
- Promises of tax refunds or “guaranteed” savings.
- Will not give a registration number or body.
- Asks for your eFiling password.
- Cannot say who will actually do the work.
- Files late and explains it as normal. Our compliance calendar paper shows what lateness costs.
Do you need a CA(SA)?
Usually the deciding factors are not the letters after the name. For most owner-managed businesses, what matters is a registered tax practitioner, experience in your sector and a clear scope. A CA(SA) is not required for bookkeeping, VAT, payroll or income tax returns. Where a law or a funder requires an audit, you need a registered auditor, and that is a separate appointment.
What to do now
- Write down what you need from the four jobs above, and which is the most urgent.
- Shortlist two or three and ask each the ten questions in writing.
- Verify the registration number with the professional body.
- Compare scope, not just price. A cheaper quote with a narrower scope is rarely cheaper.
- Start with one clear piece of work and judge the response before you widen it.
Frequently asked questions
What is the difference between a CA(SA) and a SAIPA accountant?
A CA(SA) is a chartered accountant, a designation awarded by SAICA, and can go on to register as an auditor. A PA(SA) is a professional accountant, a designation awarded by SAIPA, and does not sign audit opinions. For bookkeeping, VAT, payroll and tax returns, both can be appropriate. Check experience with businesses like yours.
Does my accountant have to be registered with SARS?
If they give tax advice or complete tax returns for others for a fee, generally yes. The Tax Administration Act requires such tax practitioners to register with a SARS-recognised controlling body and with SARS, with limited exceptions. Ask for their body and registration number.
How do I check an accountant’s membership?
Ask for their membership number and the name of their professional body, then confirm it with the body. Do the same for their SARS tax practitioner registration.
Should I choose a local accountant or one that works remotely?
Most accounting work is done on cloud software, so location matters less than fit, response time and sector experience. TBL Accounting works with businesses across South Africa remotely and has offices in Gauteng, Cape Town and Durban.
How much should an accountant charge a small business?
It depends on what is in scope, how many transactions you have and how much reporting you need. Ask each accountant for a written scope and a fixed fee, and compare like with like.
Sources and further reading
This article is general information for South African businesses. It is not tax, legal or financial advice, and it reflects the rules and figures at the date shown above. Rules and fees change, so confirm the current position before you act.