{"id":68227,"date":"2019-06-18T00:00:00","date_gmt":"2019-06-17T22:00:00","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-za\/blog\/?p=68227"},"modified":"2026-02-05T17:46:28","modified_gmt":"2026-02-05T15:46:28","slug":"informal-sector-accounting","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/informal-sector-accounting\/","title":{"rendered":"The informal sector: an untapped opportunity for accountants"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tTrends & Insights<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tThe informal sector: an untapped opportunity for accountants\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Keir\t\t\t\tKeir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Nyameko Njoli woke up one day believing he could be a great businessman and run a successful accounting consultancy. \u201cI sold the idea to my wife and quit my job. The first two months were exciting \u2013 I even secured my first client. But then reality set in and I soon realised that running a business is not a natural skill \u2013 it\u2019s something I had to learn.\u201d<\/p>\n\n\n\n

Speaking in the latest episode of the Sage #NextGenAccounting podcast<\/a>, Njoli, explains how leaving the security of a corporate accounting firm quickly taught him that he needed to upskill himself, and add value in a competitive market if he wanted to be a successful, self-employed accountant.<\/p>\n\n\n\n

Njoli discovered he could differentiate himself by adding value to the informal economy. He believes this is a largely untapped customer base for accountants \u2013 if they\u2019re willing to become educators and advisors to their clients.<\/p>\n\n\n\n

\u201cThere\u2019s a lot they don\u2019t teach you in university, partly because they can\u2019t keep up with advancements in accounting technology. But one thing we\u2019re not told is that \u2013 in the informal economy in particular \u2013 there\u2019s also a lot that our clients don\u2019t know about pricing, cash flow, and customer service, so we have to take on the dual role of teacher and learner.\u201d<\/p>\n\n\n\n

He recalls taking his car to a panel beater working in the informal sector. \u201cHe cut his labour costs in half because he was trying to make me happy. In the end, it took twice as long to fix my car and he still had to pay his staff. He was operating at a loss. That was the perfect time for me to educate him about why he\u2019s not making money \u2013 because he was under-pricing his service.\u201d<\/p>\n\n\n\n

Much to learn<\/h2>\n\n\n\n

The technology advancements Njoli speaks about should be the biggest driver for accountants to learn new, softer skills.<\/p>\n\n\n\n

\u201cNew apps and software solutions make accounting simple. When supported by artificial intelligence, these solutions perform many accounting functions faster \u2013 and better \u2013 than humans. The reality is, anyone can sell this technology, and businesses will go with the lowest price. Accountants need to differentiate themselves by figuring out how to complement these solutions. They need to learn new skills so that they can add value to their clients\u2019 businesses beyond technology.\u201d<\/p>\n\n\n\n

Unlike working for an established consultancy that already has clients, working systems and processes, being independent means accountants need to be able to sell themselves \u2013 and confidence is not something they teach at university.<\/p>\n\n\n\n

\u201cWhen the clients weren\u2019t coming to me, I realised I had to sell myself \u2013 and selling is a skill that doesn\u2019t come naturally to accountants. No one teaches us how to sell. So, I asked my own clients how they got clients, I watched YouTube and LinkedIn videos, I spent time at SARS figuring out their systems and processes. You can\u2019t make a mistake with a SARS submission because it\u2019s your client\u2019s business on the line. None of this is in the theory we\u2019re taught. I\u2019m still learning; there are no shortcuts \u2013 you have to get out there and learn.\u201d<\/p>\n\n\n\n

Bean-counter to consultant<\/h2>\n\n\n\n

Another skill Njoli had to learn fast was how to be a business advisor and consultant. He says new accountants should decide what sector they want to serve and what value they can add.<\/p>\n\n\n\n

\u201cClients of large accounting firms have certain expectations, in terms of what reports they want to receive and by when. But businesses in the informal sector have different expectations and perceptions of accountants. Most of their challenges are directly linked to the success of their business. My role now becomes more than delivering a report on time. I\u2019m an advisor who helps them make a success of their business, by guiding them on strategy and trends.<\/p>\n\n\n\n

\u201cMany business owners in this sector survive month-to-month and don\u2019t turn a profit. Their cash flow situation is precarious. For them, it\u2019s not about the accounting package \u2013 taxi drivers don\u2019t have time to click buttons and learn new systems.\u00a0They don\u2019t have the skills to manage their paperwork. That\u2019s because accounting is not their primary focus. So, it\u2019s up to me to make the accounting process as simple as possible \u2013 for example, by recommending easy-to-use apps. But the real value I bring to the table is the advice I give them \u2013 helping them to run their businesses better, to understand pricing, admin and quoting, and advising on how they can better interact with their customers.\u201d<\/p>\n\n\n\n

Changing perceptions<\/h2>\n\n\n\n

Njoli says there\u2019s a perception in the informal market that an accountant\u2019s role is to crunch the numbers, talk to the bank when a business needs funding, and get tax clearance certificates.<\/p>\n\n\n\n

\u201cWe\u2019ve been taught that, as accountants, we\u2019re going to arrive at a company and solve a certain problem. But, in the informal sector, some business owners might only have a Grade 4 education \u2013 it\u2019s hard work convincing them to do things differently.\u00a0Approaching them from a sustainability perspective and telling them what they need to do in order for their business to survive, is how you gain their trust. A lot of these businesses don\u2019t understand cash flow and how it affects their business.”<\/p>\n\n\n\n

Avika Ramdhani, Director of Accountants, Partners and Alliances at Sage, agrees that accountants need to start thinking like entrepreneurs if they want to be successful in the future. \u201cThey need to identify untapped markets and gaps in existing markets. They can only do that if they\u2019re always listening, watching, and reading \u2013 about anything and everything. Soon, softer skills like advisory and strategy will be more in demand than the ability to crunch numbers.\u201d<\/p>\n\n\n

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Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\t\t\t\tSpeaking in the latest episode of the Sage #NextGenAccounting podcast, Njoli, explains how leaving the security of a corporate accounting firm quickly taught him that he needed to upskill himself, and add value in a competitive market if he wanted to be a successful, self-employed accountant.\t\t<\/p>\n","protected":false},"author":280,"featured_media":68328,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[38,24,29],"tags":[294,325,338],"business_type":[2,5],"lilypad":[],"context":[],"industry":[],"persona":[6,15],"imagine_tag":[51,62,85,86],"coauthors":[405],"class_list":["post-68227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-getting-customers","category-growth-customers","category-trends-insights","tag-accountants","tag-customer-acquisition","tag-opinion-columns","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-za","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-44.jpg","imagine_tags":{"51":"Accountants","62":"Ambition","85":"Small business","86":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/68227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=68227"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/68227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/68328"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=68227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=68227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=68227"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=68227"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=68227"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=68227"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=68227"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=68227"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=68227"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=68227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}