Fix it, rescue it or close it? Four options for a client in trouble
Debtor days are climbing, the VAT money paid the wages and the owner asks whether business rescue could buy some time. Before you answer, know that a struggling business has four options, not two: an informal turnaround, a section 155 compromise, business rescue or liquidation. This guide shows South African accountants how to assess distress, test viability, compare the four routes and protect their own fees. It includes a worked liquidation example and an implementation checklist for clients.
Your budget was out of date by April. Plan 2027 differently
Many 2026 budgets were out of date by April. Petrol rose from R20.75 a litre in January to R30.25 in October, interest rates went up and customers took longer to pay. This article shows South African accountants how to use scenario planning for their 2027 budgets: separate risk from uncertainty, build base, worst and best cases, run each through to a monthly cash flow forecast and agree triggers in advance. It includes a worked case study and an implementation checklist.
When CC Members Become Personally Liable
A close corporation may look harmless on paper, but its members can still face personal liability years after the business was formed. Two Supreme Court of Appeal judgments in 2025 have brought the issue back into focus. One confirms that membership alone does not make a person liable for the corporation’s conduct. The other shows that a reckless-trading claim can survive for far longer than many practitioners realise. For accountants, the message is simple: old CC files still deserve careful attention.
You’ve Identified the Risk… But That Was the Easy Part
Most professionals are good at spotting risk but that is only the beginning. Writing it down does not fix the problem and it does not protect the business. The real value comes from deciding what to do next and actually doing it. Whether you avoid it, reduce it, share it or accept it, the key is to make a clear choice and take action. Risk only becomes managed when something in the real world changes.