WHEN LAST DID YOU REVIEW YOUR PRODUCT COSTS?

In a business environment where input prices, labour costs, and supply chain pressures can change quickly, outdated product costs can quietly erode profit. Regular costing reviews help you price with confidence, protect margins, and make better business decisions.

A practical review rhythm:

• Monthly or Quarterly: Review actual vs. standard costs, variances, and major product lines.
• Annually (or more frequently): Conduct a comprehensive review of your costing methods. Update for new processes, products, or significant cost driver changes.
• Event-Triggered: Review immediately after major events like supplier price hikes, new product launches, process changes, economic shifts, or when profitability dips unexpectedly.

Simple Ways to Improve Costing Accuracy

• Integrate costing with your accounting and production systems for real-time visibility.
• Train teams on accurate data entry (e.g., time tracking, material usage).
• Regularly validate assumptions against actual data.
• Consider software solutions for scalability as your business grows.

Conclusion

Accurate product costing is not just an accounting exercise; it is an essential part of protecting profitability. Whether you review costs monthly, quarterly, or when major changes occur, staying close to your numbers gives you the insight needed to price correctly, control expenses, and respond quickly when conditions shift.

If you have not reviewed your product costs recently, now may be a good time to do so.

Article by: Russel McLaren (Franchisee – West Beach/Blouberg)

HOOKING THE RIGHT CUSTOMER: A FRESH LOOK AT MARKETING

Finding customers is a lot like fishing. It takes preparation, patience, and the right strategy to attract the kind of customer your business is best suited to serve. When you know who you want to reach, where to find them, and how to respond, you create stronger opportunities for lasting connections.

Start by making sure your business is ready to deliver on what you promise. Then define your ideal customer and understand where they spend their time, both online and offline. This helps you choose the right marketing approach, whether that is social media, networking, or direct outreach.

Once your strategy is clear, put it into action consistently. Marketing only works when you actively engage, follow up quickly, and stay open to adjusting your approach when something is not working. Patience is important, but so is paying attention to what your efforts are telling you.

Not every lead will be the right fit, and that is perfectly fine. The goal is to focus your energy on the customers who align with your business and can grow with you over time. Every win, no matter how small, is worth celebrating because it reflects the value you bring. With the right preparation and persistence, your next great customer may be closer than you think.

Article by: Theresa Myburgh (Franchisee – Krugersdorp)

WHY ACCOUNTING MATTERS FOR SMALL BUSINESSES

For many small business owners, accounting may not be the most exciting part of the job, but it is one of the most valuable. Behind every thriving business is a clear understanding of where money is coming from, where it is going, and how to plan for what comes next. Good accounting provides that clarity. It helps owners manage cash flow, pay suppliers and employees on time, and stay on top of everyday expenses with greater confidence. It also makes tax time far less stressful by keeping records organised and reducing the chance of missed deductions or costly penalties.

Strong accounting also helps business owners make smarter decisions for the future. It highlights which products or services are performing well, where costs can be trimmed, and how the business is growing over time. Just as importantly, it helps keep personal and business finances separate, which protects both the business and the owner. When financial records are accurate and up to date, they also build trust with lenders, investors, and potential partners. In the end, accounting is much more than paperwork. It is a practical, powerful tool that supports confidence, stability, and long-term success.

CLAIMING VAT ON A RESIDENTIAL PROPERTY CONVERTED TO BUSINESS USE: KEY CONSIDERATIONS

For businesses acquiring residential property for commercial use, it is important to understand the VAT implications at the outset. Where a VAT-registered entity purchases a residential property from a non-vendor and converts it for taxable business purposes, the transaction may give rise to a notional input VAT deduction, subject to specific requirements under the VAT Act.

In these circumstances, transfer duty—not VAT—is generally payable on the acquisition, as the seller is not a VAT vendor. However, the property may qualify as “second-hand goods” for VAT purposes, enabling the purchaser to claim a deemed input tax deduction on the portion applied in the course of taxable business activities.

The following key considerations should be noted when assessing eligibility for the deduction:

• The property must be used for taxable business purposes and not for private or exempt use.
• The notional input VAT claim is limited to 15/115 of the lesser of the purchase price or the open market value.
• Appropriate supporting documentation must be retained, including the VAT264 form, seller details, proof of payment, and confirmation that the supply was not subject to VAT.

Businesses should also note that only amounts actually paid may be taken into account, and the seller must be a South African resident. If the property is subsequently applied for non-taxable or private use, an output tax adjustment may arise. Careful review of the transaction and supporting records is therefore essential to ensure compliance and support any input tax claimed.

Article by: Jolene de Villiers (Area Practise owner – Free State)