Financial Management Archives - Page 4 of 4

Questions to ask your accountant

As a business owner, how often do you chat to your accountant about the financial management of your business? When you do, what do you chat about? Here are some key questions to ask then at your next meeting. We have split them into two categories for you: Accounting and Financial Management. Spend time with your finance team and accountant discussing these points and keep talking until you fully understand each of them and are able to share the answers with others in your business and take action where action is required.

Questions about accounting

How much tax should I be setting aside?
How can I reduce the amount of tax I’m paying?
Should I pay myself a salary or drawings?
I want to purchase a vehicle/building/equipment, what is the most tax efficient means of structuring the deal?
I’m expanding – new venture, product, branch, partner – what is the most efficient business structure?
Am I compliant with all legal requirements?

Questions about Financial Management

How can I increase my gross profit?
How can I increase my net profit (will I make a profit)?
When am I going to have a cash crunch?
When are my quiet periods, that I need to plan for?
What are the annual expenses (and when) so I can set aside money for them?
How do I manage my debtors?

By Bruce Wade|2016-12-02T11:30:06+02:00November 25th, 2016|90 Day Sprint, Financial Management|0 Comments

SARS Provisional Tax Deadline 31 August

SARS Provisional Tax

It’s the middle of the tax year and time to pay SARS his due. The provisional tax deadline is the 31 August 2016.
SARS is concerned that if you wait until the end of the year and pay all your tax in one go, you won’t have enough money available to pay everything. (It’s quite possible it will have been spent on new clothes, school fees or that iPad you’ve been eyeing). So they insist that we pay SARS at least twice a year, in the middle and at the end. These interim returns and related payments are called provisional tax returns. A final income tax return is also submitted, but only after the end of the tax year, once everything is wrapped up. You can then top up any tax you short-paid in the provisional tax returns.

Who should submit a provisional tax return? If you are a director of a company or a close corporation you need to submit provisional tax returns twice a year, or if you have any income other than salary and interest or dividends from investments. Other sources of income might include rental, freelance income, consulting fees, any kind of business, even if it’s just on the side.

If you are a company director and you only earn a salary where PAYE is deducted each month, then there may be no additional tax payment required this month. In that case the provisional tax return is merely a formality – but still necessary. Otherwise, you will need to pay tax on the profit you make from your other sources of income. This means that you can offset your expenses relating to the income before calculating the tax.

If you need help submitting your return or calculating the tax before the deadline, contact EM Solutions for support.

By Bruce Wade|2016-11-01T10:20:05+02:00August 16th, 2016|Business Resources, Financial Management|0 Comments

Do you need a Financial Review Engagement?

Getting a financial review for your business sounds much like the annual trip to the dentist – painful and expensive: but not necessarily so. An independent review of your financial status as a business is an excellent starting assessment to future growth and development of your entire business. As any Business Coach will tell you, “If it can’t be measured, it can’t be managed”

Financial review by EM-Solutions

So what is a Review Engagement?

For larger companies an annual financial audit is a legal requirement, for slightly smaller firms a review engagement, as guided by the International Standard on Review Engagements 2400, is compulsory. This includes:

Conduct adequate investigation of your paperwork and financial records
Establish if anything has been done incorrectly
Arrive at a conclusion on the financial statements as to whether they are legally compliant.

This can be as unpleasant as the Dentist, but essential for compliance.

But what about smaller firms that are forging ahead in what seems to be the ever increasing gale of issues and economic whirlwinds? A Financial Review could be the solid platform you need to launch your future strategy from to secure that all important loan or partnership agreement. This would save your company the costs involved in obtaining an audit but would still provide the bank or partners with sufficient assurance on your Annual Financial Statements.

Our team of qualified and certified practitioners is able to conduct a full review, offer Financial Management and Business Advice together with our Business Coaching and Marketing strategies will put your business in good standing for future sustainability.

So, do not put this off as you may do the Dentist. Contact us today to set up a non-obligation chat with our Finance team. It could be just what your future requires.

By Bruce Wade|2016-11-01T10:20:08+02:00April 12th, 2016|Financial Management|1 Comment

Year End Strategies – Cash Flow

How to best utilise your cash flow at the end of the year to cater for the higher expenses and longer times between invoices. Knowing these simple strategies could save your business.