The CK member was sweating and having sleepless nights because of the “unreliable” financial and tax records of the business.

  • Spreadsheet bookkeeping and payroll by the member supported by ring binders full of paper documents.
  • Little distinction made between personal and business transactions.
  • A “scrambled egg” balance sheet and profit and loss.
  • Doubtful balance sheet assets.
  • Latent tax liabilities.

Published financial statements were of dubious quality and no reliance could be placed on them. The “accountant” who prepared the financials disclaimed responsibility – placing all accountability straight back to the member.

Key Objective

Peace of mind through business risk mitigation for the CK and member.

  • South African Revenue Service.
  • Other state regulators.
  • Industry regulatory bodies.
  • Business and personal reputation.

Solution

Fit for purpose processes and technology were implemented to standardise bookkeeping and accounting.

  1. Xero implemented for improved financial processing and record keeping.
  2. SimplePay implemented for better and more accurate payroll processing.
  3. Hubdoc implemented to electronically store business documents.

Key Actions

  1. Balance sheet stripped down to essentials.
  2. Business transactions posted in a timely (daily) and accurate manner with personal transactions removed from the business through independent purging.
  3. Documents supporting business events efficiently stored and easily retrieved from electronic files.
  4. IFRS for SME’s applied and high quality financial statements prepared and delivered within the March target.
  5. Provisional Tax, Income Tax, VAT and Payroll taxes for both CK and member sorted.

Result

Reliable and compliant financial systems created on solid process and technology platforms. The client has not looked back and rests far easier at night – the technical solution was relatively easy, persuading the client to not “break bad” was more difficult.  

Getting on the wrong side of tax authorities and industry regulatory bodies is a serious thing. 

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