Numbers are a part of our everyday lives to the extent that we cannot get away from them. We check our till slips, calculate ourbudgets, try and estimate our electricity costs per kw/h or kilometres per litre to work out our monthly costs, and generally become mired in the need to accurately add, subtract, divide and multiply numbers to bring sense to our lives. For many of us, this is little short of a nightmare, whilst others seem to breeze through these activities with ease.
Let your Accountant control the finances
For those of us who are running small businesses which generate invoices, statements and VAT calculations, being a “non-numbers” person is extremely problematic and it is easy to get into a complete muddle very quickly. This is why we need book-keepers and accountants in our working lives. Larger companies employ full-time accountants to fulfil their needs, but smaller companies neither need full-time accountants, nor can they afford to employ someone for what is effectively a part-time job. It’s the nature of business that you support and pay for what is effective for your company, and discard those elements which are not, sometimes through no fault of their own, providing full value to the company. Accountants are highly qualified personnel who have gone through rigorous theoretical and on-the-job practical training, and are au-fait with the latest regulations from SARS, the Government and other financial institutions. They are skilled and expert specialists in their field, and ensure that the financial matters of any company are pumping smoothly in terms of in- and outflow of cash and reserves. They are the ogres who collect payment due from debtors and the angels who pay the company’s creditors for services provided to the company.
Stay updated with the latest financial regulations
Accountants are a step above book-keepers in that they are able to take the financial records of the company to audit stage by an external auditor, whereas book-keepers can only take accounts to a certain point, after which they are usually handed to an accountant for finalisation and preparation for audit. Having said this, there is often no need for a full-time accountant, and a book-keeper will keep the books balanced until it is time for the annual audit. In the days when CC (close corporation) businesses existed, there was no need for annual audits, since CCs had no shareholders and therefore no share capital, although the members of the CC obviously had an interest in the company since they were also the owners of the company. Where there are external shareholders of a (Pty) Ltd company, the business must be completely transparent and above-board in all its financial dealings, and the accounts must be open to inspection by shareholders at any given time. However, small (Pty) Ltd companies may not have external shareholders, and consist only of one or more members or directors. Public companies and State Owned companies MUST undergo annual audits and present Annual Financial Statements, whereas Private companies, Personal Liability companies and Non-profit companies require an annual audit only if they meet the requirements test as per the Regulations of the new Companies Act. Accountants are responsible for keeping themselves updated on all new regulations regarding such matters to ensure that the companies for which they work are complying with the law.
Don’t have full-time Accountant needs? Go for self-employed …
For those small businesses and companies who only need an external or very-part-time accountant, it makes sense to hire someone external who can provide the time needed without the heavy overheads of a full-time or part-time employee, such as medical aid benefits, pension contributions, sick-leave, annual leave, etc. A self-employed accountant is a treasure which cannot be under-estimated. Leaving your invoicing, debt collection, creditor payments and overall financial control in the hands of a qualified, honest and experienced accountant makes for peace of mind, thus allowing you to concentrate on the actual business of running your company and growing it to bigger and better heights. And, to be honest, why would you want to spend your precious time slogging away at figures and numbers which drive you to distraction when you have new contacts to make and more business to bring in?
Don’t underestimate the role of the Accountant in your business
An accountant is a vital part of any business, no matter what size the business or company may be. And whether you are running a simple one-(wo)man show or are in charge of a number of employees, an accountant will still provide the stability of ensuring that you know your financial boundaries at any given time, and that the financial ‘circulatory system’ of the business is operating as it should, ensuring that there is always a financial safety-net beneath you. By heeding the advice and guidance of your accountant, you can give yourself the assurance that your company or small business has the financial strength to weather the lean times and move forward with confidence as you continue to grow its customer and market base. It’s definitely a win/win situation from all angles, so why wait?
