2. Content
• What does the Companies Act 71 of 2008 say about Financial
Reporting?
• More than Financial Reporting/Financial Management.
• Service we provide to ensure your company is operating effectively
and in conformity with relevant legislation.
3. Financial Reporting in terms of the Companies
Act 71 of 2008
• Section 28 of the Companies Act deals with the accounting records
of a company. In this section we learn that a company must keep
accurate and complete accounting records and these records must
be kept at the registered office of the company.
• Section 30 of the Companies Act deals with Annual Financial
Statements of the company and permits the following:
i. All companies should prepare financial statements within 6
months after the financial year end of the company, in terms of
the financial reporting standards as set out in Regulation 27 of the
Act.
4. Should the Annual Financial Statement of a
company be audited?
• All public and state-owned companies must be audited.
• Private companies are required to be audited in the following
circumstances:
1) If it is required by the company’s Memorandum of Incorporation
(MOI).
2) If the company holds assets in a fiduciary capacity of more that 5
million Rand.
3) If the company’s Public Interest Score is more than 350.
5. What happens if a private company does not
have to be audited?
• If a private company is ‘’owner managed’’ (each shareholder is a
director) the company is exempt from an audit in terms of section
30 (2) (A). This means that the company is only obligated in terms of
the Act to prepare Annual Financial Statements in conformity with
the respective Financial Reporting Standards.
• If the private company is not ‘’owner managed’’ then it may be
required to have an Independent Review. This is usually the case if
the company has a Public Interest Score of between 100 and 349.
6. How is the Public Interest Score calculated?
• The public interest score of a company is calculated as follows:
1) One point for every million Rand or part of a million Rand of
turnover for the financial year under review.
2) One point for every employee that worked for the company
during the financial year under review.
3) One point for every million Rand or part of a million Rand owed to
third parties.
4) One point for every person that has a beneficial interest in the
company.
8. More than financial reporting?
• When we look at financial reporting, we should ask the question;
are annual financial statements enough for the company to be
successful?
• From our perspective the answer is no, due to the following reason:
1) Annual financial statements are compiled once a year. Thus
reflecting the company’s financial history for the past 12 months.
For this reason we would like finance to be more than just looking
at financial statements once a year. As we can not change history.
9. More than financial reporting – Financial
Management
• We would urge every business to do financial management on a
monthly basis.
• We like to think of financial management as being the owners eyes
in the company.
• As every owner wants a good strong balance sheet and fat profits.
• Financial management is analyzing the company’s financial
performance, profitability and cash flow on a monthly basis. To use
this analysis for sound decision making that will result in greater
performance, probability and cash flow.
10. More than financial reporting – Financial
Management
• Have you ever wondered why your company shows a big profit, but
yet there is no money in the bank account?
• This goes back to the saying – Turnover is vanity, profit is sanity but
cash flow is reality.
• Financial management is a critical aspect of any successful business.
11. Services that we provide to ensure your
company is operating effectively
• Our services can be broken down as follows:
1) Financial statements and other statutory work
2) Taxation
3) Consulting and financial management
4) Accounting records
5) Other services
12. 1. Financial statements and other statutory
work comprise of:
• Compilation of Annual Financial Statements
• Independent Review of Annual Financial Statement
• Secretarial work for the company to ensure that it is in conformity
with the Companies Act 71 of 2008.
13. 2. Taxation comprise of:
• Company tax returns
• Individual tax returns
• Trust tax returns
• Provisional tax returns
• VAT and Payroll taxes
• SARS audits and all correspondence with SARS
• Payment arrangements with SARS and debt compromise
14. 3. Consulting and financial management comprise
of:
• Preparation of monthly management accounts, with detailed
analysis of financial information, like the company’s financial
performance, profitability and cash flow.
• Costing of products.
• Tax planning.
• Forecast and budgets.
• Designing sound internal controls to safeguard assets.
• Advisory on new projects and relevant costing.
15. 4. Accounting records comprise of:
• Monthly bookkeeping.
• Monthly payroll services
• Submission of monthly VAT
• Submission of monthly payroll taxes
• Submission of bi yearly payroll recons
16. 5. Other services comprise of:
• Valuation of companies.
• Company registrations.
• Trust formations.
• Wills and estates planning.
17. What do we stand for?
• We see our self as an asset for any client, we strive to be our clients
eyes in their finance.
• We want our client to excel in their market place and to be as
profitable and efficient as possible.
• We ensure our clients are in conformity with all relevant legislation.
• We come along side our client to ensure efficient and effective
business operations.
• We perform all our duties with integrity, objectivity and
transparency.
