The SAICA and South African Institute of Chartered Accountant (IRBA)

The modern head accounting body of the South AFrica, the Institute of Chartered Accountants in Pretoria, has had a royal constitution because its first inception in 1880. Accounting firms specific underneath this accreditation have to undergo some of the most rigorous analytical testing, screening, and work related experience anywhere within the global.

Before the leading edge of the economic revolution came into being, and before the outgrowth of firm agencies, accountants had been often visible as now not an awful lot extra than bookkeepers; people who recorded the economic transactions and balances of others.

In modern global, the job of accounting in Pretoria, even for a small enterprise, can frequently be a dramatically underneath favored project. The maximum technically gifted accountants of today no longer handiest ought to cope with the growing complexity of manufacturing and logistic accounting, however also transactions handling depreciation of belongings, stock valuation, and a Company's coverage and regulation dues. This makes a chartered accounting firm one of the most important elements of any commercial enterprise within the modern-day world.

What a Chartered Accounting firm can do for you

Accountants in Pretoria frequently can not perform the multitude of tasks required through a a success cutting-edge commercial enterprise all by means of themselves. Many extraordinary pretty specialized fields each require their very own full time employee, such as prison and danger control, logistics and production, taxation and regulation, depreciation and pass-forex, payroll and advantages, and of path revenue and fees.

When you have got this form of complexity within your business, the most effective feasible solution is turning to a dedicated crew of accountants.

Chartered accounting companies, much like many different regions of your commercial enterprise, will regularly be quite specialized. There may be a tax professional, a P&L professional, a payroll expert, and so forth. Hiring them is regularly similar to hiring a PR firm or advertising firm. The difference being that chartered accountants are some of the maximum heavily regulated and trained experts within the industry.

The SAICA and South African Institute of Chartered Accountant (IRBA), both based in Pretoria, routinely perform professional audits on their members and companies at some point of the yr. Additionally, in case your firm is completely or in part public (gets taxpayer bucks) then accountants in Pretoria are regularly required to maintain expert indemnity coverage, as well as being mechanically audited.

Contributing without delay on your bottom line

Going past simply recording and providing statistics, state-of-the-art expert chartered accounting companies are expected to be as essential part of a enterprise as another. That means they're anticipated to always endorse new methods of lowering charges, including on transport, import and export taxes, licensing and so forth.

Professional accountants need to be the first point of attack in such eventualities, such as discovering that a positive municipality just reduced their taxes on a key component of a brand new product, or that there are several new laws that could have an effect on production charges or liability troubles with manufacturing. It is the accounting company's process to navigate via these types of extraordinary eventualities, and choose the most economically possible alternative for the corporation.

If you are considering upgrading to a totally chartered accounting firm in Pretoria, consider it like upgrading from a college intern marketing your products, to an award winning, fully functioning marketing crew. The differences that arise will not handiest result in peace of mind for you and your budget, but also provide a regular foundation for the destiny of your enterprise.

When you process payments into your accounting software

Back to Basics: Accounting for Assets

Assets versus Expenses

When you process payments into your accounting software the decision must be made there and then whether the payment should be categorized as an asset or an expense.

It is therefore important for the processor to understand what the difference is at the input stage to avoid corrections to be made later or to avoid losing track of assets that was purchased.

How to identify an asset

Assets are resources controlled by a business as a result of past events and from which future economic benefits or service potential are expected to flow to the business.

The most obvious difference between an asset and an expense is that that an asset gives you a long-term benefit whereas an expense gives you only a short-term benefit. Assets are usually used over more than 12 months whereas expenses are used up immediately or over a shorter period.

How to identify if it is an expense

If it is not an asset, then it can be classified as an expense.

In Summary: How to identify an Assets

It is a resource

• Something you can use
• You have control over it
• You have access to it
• Has a value

There was a past events

• It was bought or donated or built

There will be future benefits or service potential

• Services to the company or rentedout of income.

Examples of assets:

• Office equipment
• Furniture and fittings
• Motor vehicles
• Plant and equipment

The Cost of an Asset

What should be included in the cost of an asset

Initial Costs is the costs directly attributable to bringing the asset in its location and condition as intended such as:

• Purchase costs
• Import duties
• Non-refundable taxes
• Less any discount or rebates
• Site preparation and development
• Initial delivery and handling costs
• Installation and assembly costs

Later costs incurred

To capitalise the cost incurred later on an existing asset depends on what it the cost will do for the asset:

Cost will be capitalised if :

 It extends the useful life of the fixed asset
 It increases the economic value of asset
 It Increase capacity/production of asset
 If it is an upgrade or refurbishment

Expense the later cost if:

 It is incurred to restore asset to a working condition for example fixing or maintaining it.

Asset Register

Asset Register is a record of information on each asset that supports the effective financial and technical management of the assets.

The asset register should also facilitate proper financial reporting.

Wessels & Associates – Chartered Accountants and Auditors, can assist you with setting up and maintaining an Asset Register and assist with calculating depreciation, impairments and book values.

Please contact us on info@wessels-accounting.co.za to request a free consultation.

The word “Tax Invoice” must be clearly indicated.

Tax Invoices

What information needs to be on a Tax Invoice

1. The word “Tax Invoice” must be clearly indicated.
2. The supplier name, Address and VAT no
3. Tax Invoice Number
4. Date of Invoice
5. Recipient name, address and VAT number of recipient (if it is a registered vendor)
6. Description of goods
7. Price per unit and quantity
8. Total Sale value (Indicate the currency)
9. VAT Charged (indicate the VAT percentage)
10. Total value including VAT

For tax invoices below R5000

1. The recipient details need not appear on the invoice
2. There are no requirements to show the units or volume
3. The description need not be full.

Value Added Tax (VAT)

Who should register for VAT?

Any person that carries on a business may register for VAT.

It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve-month period.

A person may also choose to register voluntarily if the taxable supplies made, in the past period of twelve months, exceeded R50 000.

VAT increased from 14% to 15% from 1 April 2018.

How to register for VAT?

The VAT 101 application for registration must be submitted in person at the SARS branch nearest to the place where your business is situated or carried on.

A registered tax practitioner can register your business for VAT on your behalf.

Registering For Employees’ Tax  [Pay-As-You-Earn (PAYE)]

Who should register as an Employer?

An employer must register with the SARS within 21 business days after becoming an employer, unless none of the employees are liable for normal tax.

What is Employees Tax?

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting from remuneration as it is earned by an employee is commonly referred to as PAYE.

Monthly submissions to SARS by Employer

The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment.

Employer Annual Reconciliations

Employers are required to submit their Employer Annual Reconciliations by 31 May to SARS, confirming or correcting payroll tax amounts which were declared in respect of the tax period.

Who should register for Unemployment Insurance Fund (UIF)

An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS.

We are members of the South African Institute of Chartered Accountants

Wessels & Associates is an Auditing, Accounting and Tax Practice based in Pretoria. Our offices are situated in Pretoria North East.  Our clients are based in all areas of Pretoria and Pretoria North.

We are members of the South African Institute of Chartered Accountants (SAICA) and the International Regulatory Board of Auditors (IRBA).

Our Services and Specialties

Accounting / Bookkeeping

Accounting and bookkeeping entails processing of bank statement transactions into an accounting system.  Processing is done regularly to ensure accounting records are always up to date to produce accurate financial reports. We follow accounting standards prescribed for South Africa– IFRS for Small and Medium size entities (IFRS for SMEs).

Management Reporting

Wessels & Associates Accountants can provide you with accounting reports to enable you to analyse your business performance on a regular basis. Reporting can be done based on your business needs. In a project environment for instance, the accounting system can be set up to report on the profit per project.

• Income statement

An Income Statement is a report that shows your Income from Sales, less your expenses, to show if your business is making a profit.

Month to month comparisons can be made to budgets and to other months to determine why your income and expenses are increasing.

• Budgets

We can assist you with compiling a budget and comparing it with the actual accounting records. This will help you identify over expenditure and corrective action can be taken.

• Balance Sheet

A Balance Sheet is a summary of your Assets and Liabilities at any point in time. Financial Institutions are interested in this report to determine your liquidity, solvency and overall financial position.

Fixed Asset Registers

Wessels & Associates can assist you with setting up and maintaining an Asset Register.

An Fixed Asset Register keeps record of all your companies’ assets, where they are located, when they were purchased, at what cost and their current book values.

As qualified chartered accountants we can calculate depreciation, impairments and book values.

Annual Financial Statements

Financial Statements should be supplied to SARS and CIPC on an annual basis. Banks also require Financial Statements that are compiled by a qualified accountant.  As Registered Auditors,this will give the Annual Financial Statements the credibility required by the institutions.

Accounting Systems and Software

SagePastel Accounting Software and Xero Accounting Software are mainly used in our practice.

We can also assist with converting your current system whether manual or on excel over to Pastel or Xero Accounting.

Statutory Returns

Wessels & Associates is a SARS Registered Tax Practitioner.

We can submit the following statutory returns via e-filing or other portals on your behalf:

EMP Payroll returns– PAYE, UIF, SDL, IRP5s

VAT returns VAT201

TAX returns – IT12 or IT14 – Individual taxation and Corporate Taxation

Provisional Tax returns IRP6

Unemployment Insurance Funds UIF returns

Compensation Commission returns

Tax Clearance Certificates

Tax Compliance Status requests

Auditing or Other Types of Engagements

We are Registered Auditors with the IRBA (International Regulatory Board of Auditors) and there for allowed to conduct statutory audits and other audit engagements.

As there are different types of engagements your business needs to first determine what kind of engagement it requires. Certain small and medium size companies, for example, might only need a Compilation Engagement or an Independent Review rather than a full statutory audit.

The type of engagement required by each business is prescribed by the Companies Act of 2008 and depends on the result of the Public Interest Score (PIS) calculated.

We can calculate your PIS to determine what kind of engagement you need.

Other audit support or Internal Auditing

Even if we are not appointed as your auditors, we can also assist you with getting audit ready and liaise with your own appointed auditors to support you during an audit.

Audit readiness entails for instance preparing prior to the audit, reconciliations such as Bank reconciliations, VAT reconciliations to Turnover, Payroll reconciliations. Preparing a fixed asset register and depreciation calculations and year end journals.

Your company’s control environment and system description can also be documented and streamlined not only for audit purposes but also for your own internal control benefits.

The communication gap between your accounting staff and the external audit team can create unnecessary delays and misunderstandings.

Having a qualified accountant and CA(SA)on youraccounting team will assist both parties (you and the auditor) through a painless and efficient audit process.

Internal controls

We can design and help with implementing controls and systems in your accounting department.

Appropriate internal controls can prevent and detect errors and fraud.

Controls such as reconciliations, approval documentation, and segregation of duties, checks and balances will support complete and accurate accounting records that can be relied on.

A strong control environment gives you that peace of mind.

Training and capacity building

Training in bookkeeping, accounting and general office administration are available should you need to up-skill your employees.   This will in the long term build capacity for your business and provide your employees with growth and personal development.

Our Fees

We provide initial free consultation to determine your business accounting and financial reporting needs.

Our fees are based on a combination of the required hours and level of skills needed which is driven by the size of your business and an estimated number of transactions.

We will be happy to provide you with a detailed quotation of our package for your business.

Contact us on info@wessels-accounting.co.za to request a free consultation.