Business Liquidations Are Surging
This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
Why Your Clients Are Closing Their Doors and What You Can Do About It
South Africa is seeing a sharp rise in business closures and if you’re an accountant, that should set off alarms. In just the first four months of 2025, 482 companies have liquidated. That’s not just a number. That’s 482 clients who couldn’t make it.
109 of those shut down in April alone. And more worrying than the quantity is the quality of the closures, over 70% are voluntary. In other words, business owners are walking away before creditors even knock.
That’s a red flag for anyone running a small practice or trying to keep clients out of SARS and CIPC’s firing line. Your role isn’t just filing returns anymore it is helping businesses survive.
This Isn’t a “Big Business” Problem
The headlines always talk about big corporates, but the pain is hitting small businesses hardest, your clients. SMEs are battling:
Interest rates that make borrowing unaffordable
Weak customer demand that kills cashflow
Load shedding that wrecks productivity
Rising fuel and logistics costs that eat away at margins
These aren’t abstract problems, they are the reasons why clients miss payments, why books go out of balance, and why SARS penalties start piling up. If you’re not giving advice on cashflow planning, supplier terms, energy mitigation, or contingency reserves, you’re leaving value and revenue on the table.
Global Pressure Is Making It Worse
Just when things couldn’t get tighter, the international trade battlefield lit up again. A global tariff war, led by U.S. President Donald Trump, has directly impacted South African exports. On 5 April, a sweeping 10% global tariff was imposed, followed by targeted tariffs on countries like ours.
Result? Even the businesses that were trading internationally are now holding back, they are pausing investments, freezing hiring, and scaling down operations. You’ll see this reflected in reduced VAT returns, withheld capital budgets, and clients asking tough questions like, “Can we even stay open?”
Why This Matters to You
CIBA members aren’t just number-crunchers. You’re often the only professional advisor a small business owner speaks to before making a big decision like shutting down. When clients voluntarily liquidate, it means they think there’s no way out.
But you know better. You know how to:
Spot trouble early with analytical procedures
Model out different scenarios to assess if a business can still work
Restructure debt or negotiate supplier extensions
Guide clients through the legal, tax, and compliance consequences of closing or scaling
The problem? Most clients don’t know you can do all that, because most accountants don’t talk about it.
Now’s the time to change that.
Turn the Trend into a New Advisory Service
Voluntary liquidations are up over 25% year-on-year. That’s not a tragedy. It is a business opportunity, if you position it right.
· Your clients need:
· Strategic advisory that helps them decide when to pivot or persevere
· Forecasting that gives them confidence to take action
· Help understanding what a controlled wind-down really looks like
· SARS-safe closure and deregistration procedures
If you’re not already charging for this, now is the time to start. This is what Business Accountants in Practice are built for. Clients are desperate for someone to take control of the chaos. Be that person to your clients and get paid for it.
If You’re in Commerce, Here’s What to Watch
CIBA members in commerce aren’t exempt from this pressure. If you’re managing a finance function, expect:
Increased supplier defaults
More customer bankruptcies
Delayed payments and more provisions
Now is the time to tighten credit controls, revise revenue forecasts, and have tough conversations about operational resilience. Your board will thank you for seeing this trend before it hits the income statement.
The Bottom Line
Business closures are climbing because the pressure is relentless and many business owners feel alone. But if you’re their accountant, they’re not alone.
Whether you’re in practice or commerce, now’s the time to step up, charge more for strategic advice, and position yourself as the expert clients can’t do without.
Don’t just file the numbers. Read what they’re telling you and act.
Access the CIBA CPD on Business Rescue Legislation, Processes and Procedures here
Business rescue is messy. Your role doesn’t have to be.
When a company hits the wall, clients expect their accountant to have the answers. But without knowing the legal process—or your exact duties—you risk doing more harm than good.
This session cuts through the chaos. You’ll learn what the law says, what the rescue process looks like in real life, and how to protect yourself and your client when it matters most.
📌 Recording available now
🎓 Free for CIBA members | R345 for non-members
⏱ 3 CPD hours | Category: Business Rescue
🎤 Presented by Certified Business Rescue Practitioner Div de Villiers
Get clarity. Deliver value. Stay out of trouble.
▶ Get access here
Heading 4
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
List item - monospace
List item - monospace
List item - monospace
