EP13: Bookkeeping Basics That Save You Millions

In this Rev Room episode, the team unpacks why bookkeeping is more than just admin - it’s the backbone of financial clarity and cash flow stability. Nandi shares real-world examples of how poor record-keeping leads to penalties, missed VAT claims, and cash flow strain, while disciplined, system-driven bookkeeping frees founders to focus on growth. With tools like Xero and Hubdoc, business owners can streamline processes, avoid SARS penalties, and make faster, smarter financial decisions.

This conversation is a wake-up call for entrepreneurs who are tired of scrambling to “catch up” and want a business that runs on clarity, not chaos.

💡 Key Takeaways

1. Bad bookkeeping is expensive — penalties, missed VAT claims, and poor cash flow compound into major setbacks.
2. Consistency is key — small, simple admin habits like uploading invoices immediately can drastically cut costs and stress.
3. Leverage the right tools — automation platforms like Xero and Hubdoc give you live financial insight and keep your books SARS-ready.

👉 Visit www.bizrev.co.za to learn more about our coaching, consulting, and full-service business support solutions.

📊 Want to see where your business really stands today? Take our free Biz Clarity Score™ — a 3-minute diagnostic to uncover gaps in financial visibility, tax strategy, advisory support, and business resilience. Get instant feedback and actionable next steps.

[Take Clarity Score Quiz Here]

💼 Have a business challenge, need strategic mentorship, or want to be featured on an upcoming episode of The Rev Room? Reach out directly via our site—we’d love to hear from you.

Let’s build better, together.

Transcript

hi there
and welcome to the Rev Room
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I'm Francois
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good morning everyone and welcome to the Rev Room
today we're sitting in our Cape Town office
for the first time
so excited to be here and I've got a very special guest
uh
my right hand lady with me in Cape Town Nandi Mdlalala
welcome to the Rev Room thanks Matt
I'm very excited to be here for the Biz Rev
Rev Room podcast and happy to share everything
that we know from the trenches
lekker no exciting let's get into it
um
so today we're gonna talk about bookkeeping pretty much
and what that entails
what advantages and disadvantages you might find
looking into that and Nandi
obviously one of our specialists here in Cape Town
will more than be able to help you tap into that
and hopefully give you
a bit of understanding of what that looks like
and what good verse
hopefully bad bookkeeping looks like
so I think starting Nandy
let's let's tap into it I mean
why does bookkeeping matter so much
and how can it affect their pockets
so I think if we start
perhaps with the idea of what bad book keeping is um
and how it affects a business
and how costly it can be for our clients
if they are not um
taking steps towards improving their bookkeeping
so we're talking about penalties and interest
in terms of SARS if there are late submissions
um missing uh
invoices where we are not able to claim certain uh
VAT or input VAT uh
because we cannot validate without uh
a valid tax invoice and if this isn't done regularly
there's also delays in terms of time so that
that you could have perhaps claimed in this period
would then have to be pushed
forward to the next period
which also directly affects your cash flow
perfect I mean brilliant
so I mean to put that simply
you saying that it will not only affect your
your VAT amount that you could claim back
but actually missing expenses
tax payable yeah
and then that impacting your cash flow
and amount that you could draw from the business
of course interesting
no that's brilliant
so I mean looking at that
we've talked a bit about what bad bookkeeping
how it can hurt you looking at good bookkeeping
what what would that look like
so good bookkeeping
we're looking at clients being a bit more consistent
in terms of keeping track of their expenses
and their income uh
reconciling as often as possible
especially if you're using um
a software accounting software such
as zero and Hubdog
where you are getting live feed of your um
income and expenses
making sure that your expenses especially are recorded
uh on a on a regular basis and upload your receipts
upload your invoices
that you're sending out to your customers
um use software
accounting software
that really optimises that and automates that for you
and surely you will see a change in your bookkeeping
okay brilliant
so I mean it's just a big thing there is
that you mentioned was sort of consistency
and making sure
that the numbers align from previous financial years
and then you're gonna be able to get the most
out of it avoid missing slips and yeah
be able to trust the reports for sure fascinating
so I know from our firm
a majority of our clients use zero and hubdoc and yeah
so I just wanna
see and tap into these two tools on how they would
actually um
save us time
and therefore clients time and money as well
how how those two work together
so the lovely thing about hot dog and zero is that more
No. 1 they work with each other and how you as a client
uh place yourself with those two
um software products is with Hubdoc
you literally had take your phone
you take a photo of the invoice
you upload it onto Hubdoc
so for example
if you are a client who is used to using perhaps pastel
where you are
taking photos and you're emailing it to your bookkeeper
you are sort of circumventing
that whole extra step of it being printed
processed on pastel
whereas hubdoc takes it straight to zero
and it reflects in the bills to pay
if it's your bank statement
it reflects in your bank reconciliation
which then also
hurries up the step of us on the other end
where we're able to see the information
almost instantaneously
also depending on the bank that you're using
and we're able to give you a bit more live
a feed of your
of your business really of your business standing
so when you're using these um
two products these two software products
it also helps you reach your financial decisions
a lot quicker
because we're able to do our job as your bookkeeper
a lot quicker perfect
so I mean just tapping into that
it's quite clear to see as well
that a lot of the work that we doing it we
we await for the information from the client
so it's crucial yeah
um that
that the client provides us with the correct
information yes
and time is key as well if they're wanting to kick out
um that bookkeeping to happen there
perfect okay cool
I mean tapping into that
and then can you think of any example anonymously
of course of where a client
of a client who perhaps gets it right
and then maybe a client who doesn't
so I have a couple
of clients who are my absolute favourites
because the small act of the admin work is so crucial
and so important to them and it reflects
in how they make sure that we get to do our job
as quickly as and as efficiently as possible
and I mean I'm talking about invoices
and also on a slight Tangent
I think it is also important that clients are aware
of what constitutes a tax invoice
that allows us to claim the
in the VAT especially from an expense point of view
so where you have an informed client like that
and this is now the client that I refer to um
the invoices are invoices that are in relation
to the production of income
so they are business expenses
that means it cuts down my time as their bookkeeper
where I have to sort through
which invoices relate to the business
wherever there are any disparities or um
any uncertainty rather um
this client particularly
will make sure that they make a note on the invoice
so I again as their bookkeeper
I'm cutting out the time where I'm having to contact
the client to try and get clarity
on the invoice and the expense
it's already written there snapped
put on to have dock immediately
I'm able to reconcile it to the payment
on the zero side because they use a
a very efficient bank that allows us to see the uh
transactions on their bank almost instantaneously so
that's an example for me
of a great client who is so on top of their admin
and on top of their um
I suppose the beginning start of their bookkeeping
now when we juxtapose that with a client who happens to
not always be on top of their um admin
it takes so much time where we're trying to decipher
is this an invoice that is in relation to the business
sometimes we don't even get a valid tax invoice
which I would encourage clients to have a look at SARS
on their website
they have a criteria list of what constitute
a valid tax invoice and all of that takes a bit of time
which also sort of defeats
the point of using the two products that we've now
the two software products that we've just spoken about
zero and Hot Dog the whole
idea of those two products is that they work almost
instantaneously
you almost get able to get your information
your financial information as quickly as possible
so with those clients
where they are not always upfront with their admin
it makes it a bit difficult
it delays
and we end up getting to penalties and interest
which obviously we try to avoid
if the whole idea is to also ensure cash flow
brilliant wow
no I mean
fascinating to see the two differences and how it can
actually you know
sting the the
the business owners for sure
um yeah
so I mean just
for the listeners what is your sort of top advice um
and tips that you would you would give them
I think my top advice is actually something that I've
pretty much Learned from you
which is to keep things as simple as possible
you would be amazed at how streamline your life really
in general um
if you
make the effort to keep things as simple as possible
every time you make a purchase
as a sale in relation to your business
all you have to do is make sure that it is a valid tax
invoice take this picture uploaded to Happydog
and we take it from there
that is literally all you have to do as a client um
it sounds it you would think that there's more to it
but some of our top performing clients
are the clients who ensure that
that simple step is honoured
at every point in turn in their business
download the hot dog app if you're not sure
reach out to your um a bookkeeper
ask your bookkeeper
and this is for our current clients
and potential clients as well
reach out to your bookkeeper
whoever it may be ask them a bit more about software
products that could help you automate your business
a lot better um
streamlining as much as possible of your business
will make so much of a difference
and also it sounds very cliche and what not
but truly it helps you focus more on
what it is that you want to do for your business
once you dedicate time to your admin
which will take you less than five minutes
and what that also does is remember
accounting and bookkeeping
it is a time based business
which means that if you are doing your part
as quickly and efficiently as possible
your bookkeeper is able to do their part
as quickly and efficiently as possible
which means that you're cutting down on your accounting
costs in general
so bear those things in mind
and again I think
I want to just reiterate the importance
of an informed client take the time to find out
what it is that your bookkeeper does understand
the difference between a tax
in a valid tax invoice and an invoice
that source would not necessarily accept
um take the time to understand
what a debit and a credit is
I'm not asking you to do a become accounting degree
however taking a bit of time to just familiarise
with why your bookkeeper is asking you these things
or insisting on certain
control measures in your business
is actually beneficial to you
and how you run your business
and as we come full circle back to your cash flow
brilliant love it
love it so I mean
just as we looking to sort of slowly wrap up
tapping on it now I mean
what what are a few things that you wish
every client understood you tapped on it now
but just with regards to a debit and a credit
but more so more so on that what
what is something that you wish that they understood
and you feel that there's maybe a missing
communication between the two
um
what I would say
above and beyond that is just really keep it simple
ha ha ha ha it
it it sounds crazy
but really keep it simple
and never be afraid to reach out and ask questions
ask your bookkeeper
whatever it is that you need to know
they need to know everything
possible about your business
so reach out to your bookkeeper um
they will have your best interests at heart
brilliant love that
thank you Nandy
thank you for your time no
thank you for having me and I think that's
that's us and thanks for tuning in to the Red Room
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yeah
OK and then just stop perfect cool
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