Areas of Practice

Annual Financial Statements

 

A company’s financial statement is put together in order to indicate how a company’s finances are doing in its activity and performance. The statement shows where your money came from and went; how your current accounts look. Companies are required to submit financial statements annually as these statements allow government agencies to ensure that companies are staying compliant with tax and financing regulations.

There are four main types of financial statements - these include:

  • Balance sheets

  • Balance sheets provide detailed information about your company’s current financial status. It will provide information on your company’s assets, liabilities and shareholders’ equity. The balance sheet gives a clear indication of a company’s financial position at the end of a reporting period.

  • Income statements

  • Income statements show how much revenue a company has generated within a specific window of time. The statement also shows costs and expenses associated with every income. The company’s income statement will therefore show its gross income, as well as income after tax and other deductions, to determine whether you made a profit or not.

  • Cash flow statements

  • A company should always have enough cash on hand to pay its expenses, so the cash flow statements are important as they will illustrate your company’s incoming and outgoing cash transactions.

  • Statements showing shareholders’ equity
    These statements seek to indicate any changes in the interests of the business’ shareholders within a specified time.

These four statements are all related and when used together they form your business’s financial statement. A company’s financial statement is often the first thing that investors will turn to, because it gives a clear indication of your business’s financial history, performance and future growth. It’s important that your statement is put together professionally to contain all relevant information. Let us help you with this.

Management Accounts

 

Management accounts allow you to look at your business more pro-actively and can help support grants, funding and securities as well as helping to identify opportunities for internal savings.

These accounts also allow you to monitor your business through a large period of growth or to develop stronger valuation for exit strategies and help show full transparency to potential investors or buyers.

Income Tax Returns

 

Submissions of annual income tax returns for Individuals, Trust and Companies to the South African Revenue Services before the deadlines to avoid interest and penalties.

PAYE registrations and submissions

 

PAYE stands for 'Pay As You Earn'. Every company, even if the director is the sole employee, must register to set up its own payroll, which deducts income tax from salaries paid to all staff employed by the company once they exceed the PAYE threshold.

Bi-annual and annual PAYE reconciliations

 

An EMP501 reconciliation is a report of all employees' earnings, which must be submitted to SARS. Employers are required to reconcile the payroll taxes liabilities (PAYE, SDL and UIF) declared monthly on the Employer declarations (EMP201). There are two submissions per annum.

VAT registrations and submissions

 

All companies must register for Value Added Tax (VAT) if the total value of taxable goods or services is more than R1 million in a 12-month period, or is expected to exceed this amount. A business may also register voluntarily if the income earned in the past 12-month period exceeded R50 000. Based on turnover the VAT submissions will be monthly or every second month.

COIDA registrations and submissions

 

Companies need to register with the Compensation Fund in order to cover your workers against occupational diseases, injuries and death. The submissions are submitted annually.

UIF registrations and submissions

 

UIF is calculated as 1% for the employer and 1% per employee. This means a total of 2% per employee per month needs to be paid over. All employees need to be registered with the Department of Labour and the company needs to pay the employer and employee contributions to the Department of Labour.

CIDB registrations and renewals

 

CIDB stands for ‘Construction Industry Development Board’. The role of the CIDB is to facilitate and promote the improved contribution of the construction industry to South African economy and society. Contractors must apply for grading through the CIDB to become listed in the Register of Contractors. All firms providing consultancy to clients and contracts in the building environment, must comply with the CIDB.