The Top 5 Trends in Accounting in 2022 

The Top 5 Trends in Accounting in 2022 

We saw many trends emerging in the accounting industry in 2020 and 2021, and these are going to continue into 2022 – with a few additions. The role of the accountant has changed, remote working has become the norm, and digitisation is on the increase. Two new trends to consider are blockchain technology and sustainability reporting. 

Gary Epstein, MD at EasyBiz Technologies, the authorised partner for QuickBooks Online Accountant in South Africa, and Christopher Botha, Director at Nwanda Incorporated, unpack the top trends and how they will affect the accounting field. 

In 2020 and 2021, many accounting firms were either not familiar with cloud accounting or were reluctant to adopt it. They had to make a quick turnaround to be able to continue operating and to future-proof their business. 


Cloud-based Accounting 

Cloud-based accounting has become the norm and has opened up a world of opportunities for accountants. It has enabled remote working, and through this, we have been able to adhere to COVID-19 guidelines and take on clients in other provinces and even other countries.

Not all clients have adopted or will adopt cloud-based accounting, though, so accounting firms may have to craft a hybrid system. Remote working doesn’t work for everyone – humans are social animals after all. 

Remote Working 

Remote working is seen by many as a positive change; however, there does need to be a considerable focus on employee wellbeing and more care taken regarding clients’ needs. In several studies conducted, employees experienced loneliness, lack of collaboration, distractions at home, different time zones, and struggling to stay motivated as negative effects of remote working. 

A second study by HubStaff found that the biggest challenges for businesses with remote teams include communication, scheduling, tracking performance, language/cultural barriers, and building and maintaining trust between remote team members. Both the needs of employees and businesses need to be addressed for remote working to be truly successful.

Digital Transformation 

Digital transformation is accelerating across every finance function, and the use of AI opens opportunities to service a much wider audience. Being able to readily access data helps accountants tell clients more about their business in less time. 

Many AI vendors now enable the detailed analysis of client general ledgers for errant transactions or can review thousands of invoices to find potential anomalies, process millions of lines of transactions as part of the audit process, and more. This opens opportunities for accountants to add new business advisory services. With this comes a new demand for people with cloud capabilities and AI automation from a finance angle. As a result, there will be an increase in salary expectations. 

Blockchain Technology 

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. It is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. 

Accountants can benefit from blockchain technology as it would improve efficiency and accuracy of transactional data, making reconciliation much simpler and improving the integrity of data. Accountants will need to interpret the results and be able to put together the entire picture of the business’ financial position. 

A Company’s Sustainability Status 

The 2021 United Nations Climate Change Conference (COP 26) saw an agreement signed by global powers to put legislation in place to compel companies to report on their climate change. But how does this involve accountants? 

COP26 created a category for Chief Financial Officers (CFO) – the CFO Task Force – in the realisation that climate change efforts cannot be separated from business, and that there is an urgent need to involve key decision-makers in reporting on progress as it relates to the climate change agenda.  

With more than 300 000 CFOs, FDs, Financial Managers (FMs) and Financial Controllers (FCs) responsible for the financial management of the $300 billion South African economy, South Africa is well placed to influence and lead the development of international standards and realignment. 

In conclusion, with trends showing little to no change, remote working seems set to continue. However, with the Government’s new easing of COVID regulations, companies could see fewer remote workers. Digitisation and AI are here to stay, and blockchain is fast becoming accepted. Accountants need to support their clients in 2022 as it is seen as the year of recovery for most businesses that had a tough time during the last two years. 

Agile Entrepreneur Keeps Food On Employees Tables During Covid-19 Pandemic

While the Covid-19 pandemic could have been a massive blow for Industrial Kitchen Cleaning Solutions (IKCS), which installs, maintains and services extractor systems for the restaurant and industrial kitchens industry, the business quickly shifted its focus to continue generating an income and keep food on its employees’ tables.

In addition to designing and installing extractor systems for commercial kitchens, IKCS supplies spares and services the extractor systems every three to six months to prevent them from becoming health or fire hazards, as stipulated by food industry regulations. A smaller part of the business is full kitchen and restaurant deep cleaning and the supply of chemicals and sanitisation products.

IKCS owner Paul Lucas, says a week before lockdown the majority of IKCS clients decided to hold back on their servicing contracts as they would not be making money for the foreseeable future. “Following the president’s first speech, the work conducted by our cleaning and installation department came to an abrupt halt.

“Many of my employees have been with me for the 12 years I have been running the business and I could not bear to go to bed at night, knowing that they may not have food on their tables. I realised I needed to do everything in my power to adapt the business model and place emphasis on the cleaning side of the operation.”

The business employs four teams of six people, who install and maintain the systems, as well as six sales and administrative staff members. Everyone is now focused on the deep cleaning side of the operation, which originally accounted for 20% of the business.

“My sales representatives now focus on selling the sanitisation of kitchens and office parks, as well as the provision of hand sanitiser. While the competition is stiff, our unique selling point is that we have been doing this for more than 12 years and the cleaning agents and sanitisers we use – while a little more expensive – are superior products. The sanitisers, for example, are also much safer and gentler on the hands than many of the alternatives out there. I won’t jeopardise my relationships with my customers by selling them an inferior product,” explains Lucas.

The IKCS teams are adept at deep cleaning kitchens, meaning the business has in-house expertise and the relevant equipment to offer a high-quality solution and conduct the work efficiently and thoroughly.

Lucas says the new business model is supported by a renewed focus on digital marketing and tools. “While we have always had a presence on social media, we have always relied quite heavily on our sales people to market and sell our products. With lockdown restrictions in place, we’ve encouraged our sales people to work from home. We have a good digital marketing team that has helped us take our digital marketing to a new level on Facebook, LinkedIn and Instagram and we are now selling our products and services on these platforms too.”

He says it is fortuitous that the business invested in an online accounting system, QuickBooks Online, about a year ago. “Unless you’re an accountant, manual accounting can be difficult. Not only has QuickBooks Online allowed us to streamline our systems and processes, it has helped us reduce costs significantly. And, of course, everything can be done remotely.”

Having invested in digitising the accounting system, he says a lot of time was freed up in order to be able to be agile and reactive. Beyond this, the cost reduction is invaluable.

Lucas encourages other entrepreneurs to find ways to keep their businesses ticking over. “No one has experienced something like Covid-19 before, whether they run a large or small business. Nobody is certain about the future and everybody is stressed. However, I urge all business owners to do their best to adapt and find ways to keep their operations afloat where possible.

“By no means am I currently making excessive amounts of money. The income that I am currently generating is purely to keep my employees in wages. After all, they are the backbone of my business. I am not willing to accept defeat. As the boss, it is my job to step up and take care of my people.”

Bridget du Toit, Head of Sales and Services for EasyBiz Technologies, says Paul Lucas is a perfect example of the type of business leaders that South Africa needs in a time of crisis.

Du Toit says that often the benefits of embracing digital technologies can be found in aspects of the business one would not ordinarily expect. “By having an online accounting system take the load, time and additional financial expense off a small business owner, there is more space to focus on running the crucial functions that make money. In this instance, being able to pivot so rapidly has literally kept people employed. It is about building resilience,” she says.

5 Small Business Benefits of Online Accounting Software

It’s easily argued that no one works harder than a small business owner. To streamline your administrative tasks, you need a comprehensive online accounting package.

While large corporations have an equally impressive finance department, entrepreneurs have only a handful of helpers, sometimes none. After dealing with customers, managing staff, and cleaning up after a long day, no one should have to spend hours on bookkeeping.

Benefits of Going Digital

Before you get worried about technology, let us reassure you that these online programs are all about accounting made easy. As a result, they’re designed to be understood by anyone and feature a user-friendly interface with clear setup instructions.

Of course, it takes practice to operate it like a pro. Fortunately, there is a long list of advantages to doing your books this way. Let’s take a look at the top five benefits that organisations of any kind can enjoy with this software:

1. Increased Productivity

Digital accounting solutions speed up your business processes and give you more time to focus on important tasks. They also keep your books up to date with minimal hassle, and de-clutter your office space by eliminating the need for reams of paperwork.

2. Reduced Monthly Expenses

When running a small business, time and money are your most precious commodities. Using online accounting software helps you save on both. Instead of outsourcing your bookkeeping, online accounting software enables you to do it all yourself.

You can take complete control over your finances.

    3. Improved Accuracy

Humans make mistakes. It’s an unavoidable fact of life. Sadly though, in the small business world, even tiny errors can spell large disasters. With accounting software, the chances of calculating incorrect totals are massively reduced. It’s also easier to check digital documents and instantly fix input mishaps.

    4. Security

Having valuable data on your company in the wrong hands can jeopardise all of your business efforts. Therefore, whether you own a large or small organisation, keeping sensitive information safe is crucial. Where better to store personal details and accounting records than in the cloud.

   5. Work Smarter, Not Harder

In this age of start-ups and entrepreneurs, you need to display service excellence and efficient customer care to every client you get. The easiest way to achieve this ideal faster and more consistently is with online accounting software. Other methods are sure to leave you exhausted, influencing either your business or personal life. Why choose between the two?

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Online Tools to Help You Work Remotely

With business needs and technology evolving year after year, working remotely is becoming a necessity for most individuals and businesses.

However, sometimes working remotely isn’t as easy as it sounds. There is a lot that can go into it regardless of your industry. It takes discipline, determination, and quite a bit of help from technology. Here are some online tools to help you work remotely, effectively and efficiently.

1. Video and Conference Calling

Working from home can sometimes feel isolating. As humans, we need interaction with other people. It is important not to isolate yourself and have the ability to connect with people face to face.

It not only creates a community, but it also allows you to feel connected to your clients, team, and colleagues.

These are some ways of achieving this:

  • Schedule check-ins with your team. It helps you make sure that things are not falling through the cracks and gives you all quality time together.

  • Microsoft Teams, Skype, and Whatsapp are all good online options to consider.

2. Messaging Channels

Messaging channels are great to keep it feeling like an office environment. These are also great ways to contact your colleagues or team without the hassle of long threads and having a million emails to get through. Have a channel that is dedicated to non-work-related chat, this can be a channel whereby you have normal conversation and reconnect as a team and as people.

Some great messaging apps include:

  • Slack has a searchable history feature that allows users to easily find past chats and shared information in less time. This app will even let you share documents like PDFs, images, and videos.

  • Microsoft Teams is not only a great app for video and conference calling, it is also a great messaging platform, thought of as an alternative to Slack.

  • CloudApp is one of its kind – this is a visual communication platform that brings screen and webcam recording, GIF creation, and image annotation features securely to the cloud.

3. Project Management

Managing people and projects remotely can be a nightmare. But it doesn’t need to be. These apps will help you keep everything in tow.

  • Trello is a visual project management software. All your work happens on Boards. Boards are divided into lists, which represent different stages in a project and populated with cards. A Card represents a specific task and can contain due dates, chat boxes, attachments, and more.

  • Todoist is a smart to-do list app. Perfect for remote workers seeking simplicity.

4. File sharing

There is one app that does this perfectly and that is Dropbox. It is easy to use and is immensely popular and used by millions of people around the world.

All you need to do is upload your file to your Dropbox account and then share access to it with your colleagues. Easy!

5. Cloud-Based Accounting Software

Firstly, the cloud is a platform to access data and software online anytime from any device. This platform keeps data secured and up to date. How can this help you?

Quick Books Online is a cloud-based accounting software that allows multiple people to access and work on an account from a variety of devices, while your data is kept secured and up to date constantly.

These are some of the benefits you get with using QuickBooks Online:

  • Dashboards allow you to get a snapshot of your business. This includes Profit & Loss, Overdue Invoices, and Bank Balances in seconds.

  • Your data is secured with the same encryption technology used by the world’s leading banks. QuickBooks Online Security.

  • QuickBooks integrates with ABSA, FNB, Nedbank and Standard Bank to allow you to import your bank statements easily.

  • Know where your business stands and have ready access to 65+ reports in a single click. Get a clear view of the overall state of your business with the Company Snapshot.

  • Get enormous flexibility by customizing how your invoices and receipts look and what information they contain.

  • Handle multiple currencies and track currency gains and losses.

  • Give your employees access, while maintaining control over what information they can view or modify with multi-user collaboration.

  • Take your business with you anywhere, anytime and access QuickBooks Online on any Internet connected computer, tablet or phone using any operating system.

  • Free Mobile/Tablet App

  • Your accountant has free access to your financials

  • If you need help, free and unlimited support is just an email or phone call away.

Working remotely requires extra focus and tools to help you get work done fast and well. We hope that this blog has given you some advice on how to do just that.

Cloud accounting: Is it the best solution for my business?

As a business owner working remotely you have a lot to do, think about and plan for each day. The last thing you need is complicated systems that take up precious time.

For all businesses, small or large, your accounts and the software you use is very important – hence why it is always approached with trepidation. Using cloud accounting software, like QuickBooks Online, will get rid of that feeling and instead, give you a feeling of ease with its simplicity, accuracy, and accessibility.

What is a cloud-based accounting system and how is it different from a traditional on-site system?

Cloud accounting is a computing service provided through computers or similar devices, like smartphones, tablets, etc. via the internet. Simply put, working in “the cloud” is all the ways we use the internet.

It is more flexible as you can access your financials from any device that connects to the internet, from anywhere, at any time. A traditional on-site accounting software system can only be accessed from a few computers situated inside your office.

Cloud accounting updates financial information automatically and offers you real-time reporting. Not only does this eliminate the possibility of human error in data capturing, but you can have peace of mind that your balances are always accurate.

A system based in the cloud can better handle multi-currency and multi-company financial transactions.

There is no need for you to fork out money for fixed, expensive equipment and software licences as your business grows. Cloud computing cancels out increased licence, database, systems management and software costs for a growing business.

Unlike on-premises accounting software solutions, cloud accounting solutions don’t need as much maintenance. Updates happen automatically and there’s no need to update or download anything on a company computer.

When working off cloud accounting, employees in other departments, offices or across the world can access the same accounting data and the same version of the software.

You can easily share data in the cloud. All it takes is two users logging in with their unique user names and passwords. Traditional methods can be more cumbersome and require you using a flash drive, for example, to get information from one computer to another. This is also a security risk as the flash drive or disc being used can be lost or stolen.

But you’re a little concerned a cloud-based accounting system will compromise the security of your financials.

Cloud accounting is as secure (if not more secure) than traditional accounting.

Think of it this way. The accounting information stored on a traditional in-house accounting system on your laptop will be lost forever if that laptop is stolen, let alone the information breach this could lead to.

With your financial information in the cloud, none of your financial data can be traced on company computers and the information in the cloud is encrypted and password protected.

QuickBooks offers online accounting software solutions for small businesses. Find your right fit by calling us on 010 203 4300 or emailing today.


How to Digitise your Business through Social Media Marketing




With a lot of companies and people working remotely and the country going into lockdown, there is no better time to focus on digitising your business.


Most people will be spending a lot more time online. With that being said, this is a peak time to market your business and services on social media. This can help you reach more potential customers and ultimately increase your business leads, while your customers can contact you directly from the chosen platforms.

Wondering where to start? Here we have some tips to help you digitise your business and market on social media.


  1. Start with a Plan

Before you begin creating social media marketing campaigns, consider your business’s goals. Starting a social media marketing campaign without a social strategy is a recipe for disaster and panic.


  1. Meet Your Marketing Goals

Now to consider your business’ goals and how to meet them. Here are some questions to ask when defining those goals:

  • What are you hoping to achieve through social media marketing?
  • Who is your target audience?
  • What platforms would your target audience use and how would they use social media?
  • What message do you want to send to your audience with social media marketing?


These goals are important and will help you do a stellar job on social channels. But you also need to understand how those goals can help your business. Social media marketing can help with several goals, such as:

  • Increasing website traffic
  • Building conversions
  • Raising brand awareness
  • Creating a brand identity and positive brand association
  • Improving communication and interaction with key audiences


  1. Choose the Right Platforms

There is no shortage of social media platforms where content can be shared. Sharing your content on the right platforms is crucial to your success.


When determining which channels to use, you should consider your customers (audience) and your business. It’s important that you create accounts on the platforms your target audience uses, so they can easily connect with you. You should also consider which sites best fit your products.


  1. Create a Content Plan

Scrambling to create posts at the last minute can lead to low-quality content and panic. A lack of organization can lead to repetitive posts or a lull in your presence on one or more of your channels. Creating social media content calendars or content plans can help avoid those mistakes and lead to more effective posts. Content plans also help you create goals and strategies for meeting them and track your progress toward them.


To make a content calendar, use a regular calendar for each social media channel and plan out your posts in advance, complete with hashtags, links, images and other content.


Make sure you post regularly and offer truly valuable information that your ideal customers will find helpful and interesting. The content that you share on your social networks can include social media images, videos, infographics, how-to guides and more.


  1. Consistent Brand Image

Using social media for marketing enables your business to project your brand image across a variety of different social media platforms. While each platform has its own unique environment and voice, your business’s core identity, whether it’s friendly, fun, or trustworthy, should stay consistent.


  1. Sharing Links

While using social media for marketing is a great way to leverage your own unique, original content to gain followers, fans, and devotees, it’s also an opportunity to link to outside articles as well. If other sources provide great, valuable information you think your target audience will enjoy, don’t be shy about linking to them. Curating and linking to outside sources will improve trust and reliability, and you may even get some links in return.


  1. Competitors

It’s always important to keep an eye on competitors—they can provide valuable data for keyword research and other social media marketing insight. If your competitors are using a certain social media marketing channel or technique that seems to be working for them, considering doing the same thing – but make yours better!


  1. Keep Track of your Success

You can’t determine the success of your social media marketing strategies without tracking data. Google Analytics can be used as a great social media marketing tool that will help you measure your success, as well as determine which strategies are not working. You can also make use of Facebook Business Manager, Twitter Campaign Manager, LinkedIn Campaign Manager, etc.


  1. Community Management

Have someone dedicated to checking your platforms. This means that someone will monitor the comments, inbox messages, and reviews, etc. posted to your channels. This is a good way to show your customers that you are there for them and gain potential new customers.


  1. Address Problems Quickly

Hopefully, you receive mostly positive feedback on social media. Occasionally you may encounter someone who is upset, argumentative or has something negative to say about your company.


You should carefully monitor mentions of your brand on social channels, so you can catch issues before they escalate. If you spot a problem, engage with the person by publicly apologizing if necessary and offering to solve the problem over a direct message exchange. This way, people who see the post know you were responsive but don’t have to see all the specifics of the issue.

  1. Provide Value

Perhaps the most important thing you can do on social media to provide value to your followers. Create something that your audience will find useful. It could be something that tells them something they didn’t know before, makes them laugh, entertains them or anything else that’s beneficial in some way.


This aspect of social media is what attracts the right customers to your business, makes people want to follow you on social sites and helps content to spread. Master this, and you’ll be a big step closer to a successful social media marketing campaign.


With nearly 3 billion active users, social media is a potential goldmine of new customers and current patrons who could become repeat customers. Create a good social campaign, and you’ll be able to connect with some of those people and grow your customer base.


In case you missed our previous blog, here we talk about how to digitise your business through digital marketing: here

2020 Trends for Accountants

Technology is always evolving and the advent of innovations in the world is boosting economic growth at a global level.

Accounting is no exception. It plays an important role in any business. By being up to date and organized, accounting software can provide accurate, relevant, and valuable financial information, leading to better business decisions and assist in reaching the desired business growth.

Here are some of those trends you can expect to see this year:

  1. Migrating to Cloud-based Software

Cloud-based software has already made its presence in accounting. By adopting this, you can establish your practice as a leading brand that provides up to the mark CPA services.

QuickBooks Online is a perfect example of this.

Find out more here.

Products such as QuickBooks Online allow you to store & access data, utilize inbuilt tools and features from anywhere, anytime. As well as automated bank feed reconciliations, expense claim tracking, inventory control,  multi-currency processing, etc. Everything is automated.

  1. Potential of Internet

Using the internet allows your bookkeepers and accountants to have two-way conversations with colleagues and clients. There are many applications out there for face-to-face virtual interactions as well as being able to expand and assist clients across the globe.

  1. Millennial Clients

Slowly but surely the younger generation of “Millennials” will start taking the lead in most aspects of almost everything. Many business owners that fall in that category are willing to explore beyond standard business approaches and systems. Cloud-based accounting is the exact reflection of something they would expect. The era of millennials means that accountants need to handle completely different types of clients who prefer a greater level of proactiveness, enhanced operational transparency, and a personalised approach.

  1. Social Media Platforms & Accounting

Platforms such as LinkedIn, allow firms to market their services more broadly and keep connected with clients, colleagues, and partners. Such platforms also help you stay updated with the latest trends in the accounting and business sectors and how they make a difference in their work.

The number of social media users worldwide in 2019 hit 3.484 billion, up 9% year-on-year. Facebook, Twitter, and Instagram can be used for B2B and B2C with a massive number of users as well.

  1. Artificial intelligence

Artificial Intelligence (A.I) is an exciting prospect for accountants as there is the potential to effectively add a ‘virtual’ member to the team that is available 24/7 to answer multiple questions and carry out simple tasks even when the office is closed. This emerging technology will be used in the day-to-day running of businesses allowing complex and repetitive tasks to be automated with A.I, machine learning, and robotics with extreme accuracy.

2020 brings with it new opportunities and digitisation is the key trend that will dominate the profession. Accounting firms that are looking for sustainable and long-term success will need to ensure their clients can accomplish any task relating to their finances on a mobile device.

In conclusion, digitisation is becoming a must for all businesses, and it is shaping the trends that we will see in accounting. Something that every business needs to keep up with to strive and make sure they not only stay relevant but that they can offer the best and most up to date solutions for their clients and business.

How To Digitise Your Business Through Digital Marketing

Firstly, what does it mean to digitise your business? Well, digitalisation is when you use digital technologies to change a business model and provide new revenue and value-producing opportunities. Digitalizing your business can give you a competitive advantage by doing things better, faster, and cheaper than your competition.

Digital marketings any form of marketing products or services that involves electronic devices.

Having your business digitised in this day and age is imperative to make sure you stay relevant. The vast majority of the population are on their phones or computers 99% of the day. Therefore, making sure they see your ads and business is a must.


Why digital marketing matters:

Just think of it this way, Google and Facebook generate more revenue than any traditional media company because they control more eyeballs. That’s why digital marketing matters, it is where people’s attention is. It is the easiest and best way to onboard new clients and boost your business. Let’s be honest, not many people are as receptive to pamphlets and cold calling as they used to be.

The 7 big categories of online marketing are:

  • Search engine optimization (SEO)
  • Search engine marketing (SEM)
  • Social Media Marketing (SMM)
  • Pay-per-click advertising (PPC)
  • Email marketing

And now to break them down.

SEO will help optimise your website and bring you to the forefront of Google – ensuring (if done correctly) your business will appear on the first page of the Google search results page. Which ultimately is the goal, right?

SEM is essentially Google ads. For example, when you Google a product or business, the first few search results will have “ad” at the bottom of them, this is a Search Text Ad. If you are watching a YouTube video and a banner for a product or service pops up, this is a Display Ad. It is just another way of getting your business seen because everyone Googles everything.

Social Media Marketing is creating content for social networks like Facebook, Twitter, Instagram, and LinkedIn. Most people spend a huge amount of time on at least one of these networks, and if you have relevant content that is consistent, you are bound to attract attention and business.

PPC or pay-per-click advertising is businesses running Google ads and are only charged when a user actually clicks on their ad, hence the name “pay-per-click.”

Email Marketing is a highly effective strategy of sending emails to prospects and customers. Effective marketing emails convert prospects into customers. This could include banners on your emails, scheduled emails that go out to prospects, etc.

Now that we have the basics out of the way – the question is… how can digitising your business help with accounting?

We have drastically moved on from the days where you needed to write out receipts, keep boxes of slips and have to manually find and collaborate all of your company’s data. Because of everything going the digital route, it has made accounting that much easier and smoother, eliminating the chances of human error, as well as shortening the time it takes. With EasyBiz and QuickBooks Online, you can save up to 45 hours a month!

Instead of having to do everything yourself, QuickBooks Online allows you to run your small business seamlessly from the cloud. Because it’s cloud accounting software, your data is automatically synced across your devices so that your work is never lost. It also means you can run your business from the office, the car or the kitchen table.

Check out how EasyBiz and QuickBooks Online can help digitise your business today: Quick Books

That’s the scoop on how to digitise your business to save you time and money while helping you onboard new clients in an easier, more relevant way.

 South African Budget Speech 2020

The Budget Speech – an important time for South Africans and South African businesses in general. Shedding light on where we are as a country in terms of finance and what we can expect to happen during the next financial year.

It is vital information to have so you know how to prepare your business for what is to come in the business sector and make sure you plan accordingly to keep your business up and running fully.

In case you missed it, here is a summary of the events: 

  • The Finance Minister Mr Tito Mboweni announced on Wednesday, 26 February 2020 in the Budget Speech that much intervention is required to address the cost of wages in the public sector and has proposed reducing the public sector compensation bill by R160 billion over 3 years. 

This has been welcomed by many, but the trade unions are not happy.

  • One of the reasons the trade unions are unhappy is that the public sector employee compensation has remained at about 35% or so of the total expenditure over the last decade, wages are not the problem.

Looking closer, it seems that their statement is debatable and that the Minister is in fact accurate. The reason being is that the trade unions are referring to how much wages are as a ratio concerning other public expenditures.

However, the Minister is referring to affordability, which is an expenditure item relative to government revenue. If we had to accept the unions’ argument as a good measure, the government could just spend R200 billion more on goods and services funded through debt and the ratio of wages would, as a result, be corrected.

  • When compared to tax revenue collected over the last 12 years, another reality emerges. The public sector wage bill has not remained constant and has grown from just over 30 percent to over 40 percent. When compared to GDP, it has consistently grown from 10,29% in 2001, to 10,73% in 2011 to 12,3% in 2021.These increases might not appear large, but one must consider that that GDP equates to approximately R5.4 trillion. The wage bill has been tracking government expenditure growth at over 10% per annum.

This represents enormous growth in the affordability of the public sector wage bill as it relates to what government can afford and to what the country can afford.

  • The latter criteria of productivity are a lot more difficult to address given the lack of effective and transparent productivity measures in the public sector. Some have tried to analyse productivity like ‘Prophet Analytics’ in their 2012 quarterly Labour Market Navigator found that private sector employee productivity was 450% higher than in the public sector employees. In 2015 the Financial and Fiscal Commission found that the government was not doing enough to provide services “efficiently, effectively and economically”.

The Minister, in 2019, and this year in 2020 concedes as much, stating this year that civil servant’s salaries have grown by 40% in real terms but without the equivalent increase in productivity. These may all be persuasive rather than conclusive factual findings as it relates to productivity but seems to affirm what the public is experiencing daily.

In conclusion, South Africa cannot afford its public sector at the current level of stagnation and budget cuts for compensation and benefits are required. The second economic reality is that compensation only becomes problematic if it lacks concomitant productivity.

We hope this has been informative and helps you prepare your business for the upcoming year.

Do’s and Don’ts of Financial Year-End

Financial year-end can be a headache for any person working in finance. There is so much to have prepared and ready for when the time comes.

Regardless of when it is, thinking about Do’s and Don’ts is imperative to a smooth financial year-end. We’ve found some of the best do’s and don’ts that should help you out and make this time less stressful!

The Do’s

  1. Training

Training is always a good place to start. Financial year-end training is a good way to refresh yourself on the process and get up to date with any legislative changes that need to be incorporated. It’s also important for new team members to understand the preparation plan in place so that the team can hit the ground running and complete all requirements before the cut-off time.

  1. Communication

Financial year-end is a team effort, and this extends outside of your HR and Payroll teams. Let your leaders and support teams know what your plan is ahead of time so that they can assist you where needed.

For outsourced payroll, teams should start communicating with their customers early on, in order to ensure that all involved know what to do well ahead of time. With everyone briefed in with plenty of time, any misunderstandings or issues can be dealt with early on, whilst also allowing ample time to gather payroll data.

  1. Review Everything

End of the financial year means going through 12 (sometimes 13) months of payroll data, so it’s crucial that any of the information being handled doesn’t get missed. Go through your payroll calendar to ensure all payments required to be reported within the current financial year are processed on time. Review overpayments, pay codes, tax numbers, and employee information so that the payment summaries and files are correct.

The Don’ts

  1. Don’t Procrastinate

Reporting needs to be done at the same time as your organisation’s regular pay run, so it’s vital that you stay on top of competing priorities for this time of year.


  1. Take Note of Legislative Updates

Ensure that you and your team are remaining compliant with legislative requirements. It’s important to check if there is any new legislation that might impact your end of financial year payroll and HR reporting.

  1. Team’s Leave

Every person in the team needs to work together to get through the end of the financial year successfully, so it’s important to be aware of everyone’s schedule. It’s best not to have any key payroll people on leave at this time, but things can still happen or get in the way, so don’t forget to have a contingency plan in place as a backup.

By keeping these tips in mind, you can have a smooth and successful financial year-end with a 100% chance of fewer headaches or mistakes. Financial year-end is a tough time for anyone, just take a breath, make sure you have all the data you need and everything should be fine.

For any payroll assistance or software, check out Quick Payroll to see how EasyBiz can make your financial year-end that much smoother.

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Personal Information
Where a party receives any personal information (“PI”) related to the other party, the party who receives the PI, will comply with and have adequate measures in place to ensure that its employees, agents, subsidiaries and representatives comply with the provisions and obligations contained in the Protection of Personal Information Act, No. 4 of 2013. Any PI pertaining to one party which is required by the other party, will only be used by that other party for the purposes of this contract and will not be further processed or disclosed without the written consent of the latter and the recipient of that PI will take all reasonable precautions to preserve the integrity and prevent any corruption or loss, damage or destruction of the PI. If and when the contract is terminated, each party will, save to the extent that it is required to do otherwise by any applicable law, erase or cause to be erased, all PI and all copies of any part of the PI relating to the other party”.

Please fill out the form below to receive the trail demo link

Personal Information
Where a party receives any personal information (“PI”) related to the other party, the party who receives the PI, will comply with and have adequate measures in place to ensure that its employees, agents, subsidiaries and representatives comply with the provisions and obligations contained in the Protection of Personal Information Act, No. 4 of 2013. Any PI pertaining to one party which is required by the other party, will only be used by that other party for the purposes of this contract and will not be further processed or disclosed without the written consent of the latter and the recipient of that PI will take all reasonable precautions to preserve the integrity and prevent any corruption or loss, damage or destruction of the PI. If and when the contract is terminated, each party will, save to the extent that it is required to do otherwise by any applicable law, erase or cause to be erased, all PI and all copies of any part of the PI relating to the other party”.