VALUESMART ACCOUNTING SERVICES
Accounting
Manage your Finances
We can assist with the preparation of your financial information so that you are compliant and have the facts you need to make smarter business decisions. Financial statements comprise income statements, balance sheets, statements of returned earnings, and cash-flow statements.
Annual Financial Statements
Financial statements reflect your company’s financial health by displaying an overview of your financial activity over a period, usually 12 months From financial year end. Investors and creditors will use the information supplied in these statements and management notes to assess the viability of your company. They are also useful for you to identify seasonality, compare year-on-year growth or decline, and other such information to forecast and prepare the direction that the company will follow.
Finally, audited financial statements are submitted to SARS to declare your organization’s income, expenses, assets, liabilities, and equity. From small businesses to commercial enterprises, the word Tax can make even the boldest people cringe. It is time-consuming, and there are many various acts that overlap, supersede and affect tax calculations. You need a partner who has up-to-date knowledge of tax regulations and laws that govern your industry to help you navigate through the maze and calculate accurate figures – keeping your company compliant.
Using accurate data from your financial records and reports, we will calculate all your applicable, payable taxes such as corporate income tax, PAYE (Pay As You Earn), and UIF (Unemployment Insurance Fund). When recorded properly, the financial information your business holds can help you to forecast and prepare for the future with precision.
Annual accounting provisions refer to making provisions for future liabilities. Information from your financial statements, combined with your knowledge of your industry and the economic landscape can help you to make projections on future expenses such as operational investments.
We can help you to analyze your financial reports to determine what you may need to account for so that you don’t find yourself cash-strapped when you need liquidity most. Provisions also account for depreciation of assets, allowing you have a realistic outlook of your business equity. The accounting cycle ends with closing entries at the end of your accounting period. Closing entries involve:
- Reconciling accounts,
- Zeroing out temporary accounts,
- Moving temporary account balances to permanent accounts, and
- Carrying over permanent account balances
This is an important process that can reveal if there are problems in your financial record keeping or organization. It is necessary to “close the books” to prepare financial statements and review your annual performance. It also allows you to can start the next accounting period afresh.
Temporary accounts include revenue, expense, and dividend (capital withdrawals) – only these accounts are closed. Permanent accounts are never closed, these include retained earnings, assets, liabilities, and common stock.