Cash Accounting and Consulting

As an innovative problem solver with the unique ability to pursue creative solutions to a variety of issues and concerns, Dr. Sam Cash carries over 25 years of solid experience working in and for a number of organizations across the for-profit and nonprofit sectors.   Dr. Cash’s wide range of experience includes nonprofit governance, reporting, filings, accounting, auditing, fund-raising, advancement services, external affairs management, and communications.  Educationally, Dr. Cash participated in the development of courses in leadership, audit training, and estate planning.  He is a regular advisor to business and nonprofit leaders and staff and maintains an active presence in his church and community.

via About Sam Cash « Cash Accounting and Consulting.

M3 Hotel Accounting

KMyMoney 0.8.4

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Proven leader to guide M3’s sales force.

Gainesville, GA (PRWEB) September 14, 2011

M3 Hotel Accounting announced that Scott Watson has joined the Gainesville-based hotel accounting software company as the Vice President of Sales. This newly created position will help to guide M3’s sales force as it grows and expands in the industry.

Scott has over twenty-six years of sales and sales management experience in the financial software industry. Scott joins M3 from Reich & Tang, a division of Natixis Global Asset Management. As National Sales Manager, he effectively led a sales team that successfully entered new markets, deployed new products and dramatically increased market share. Scott holds a Bachelor of Science degree in Business Administration from the University of Arkansas, Fayetteville.

In his new role, Scott Watson will lead the expansion of the M3 product line. His sales team includes M3 veterans Steve Pappas and consultant Rick Frommer, as well as newly acquired hospitality industry veteran Brad Hoover. The team will work together to support M3’s existing product line of hotel accounting softwares, such as AccKnowledge and M3 Link, as well as products like payroll services, document imaging and new offerings scheduled to launch in 2012.

“To be invited to become a member of the M3 team at this time in their life cycle is exciting,” shared Watson. “We look forward to developing our sales team as the company continues to buck the national trend by expanding, growing and hiring.”

“The hiring of Scott Watson marks a turning point for our company,” explained Allen Read, Chief Operating Officer/President of M3 Hotel Accounting. “Scott’s leadership and sales strategy expertise will enable M3 to expand our services and offerings on a much larger scale, with the opportunity to reach customers across North America and even further as we continue to grow.”

As the industry leader in hotel specific accounting software, M3 Hotel Accounting processes over $8 billion in financial transactions annually. The company was founded in Gainesville, Georgia in 1998, and currently provides internet-based accounting and payroll services to over 2,700 hotels across the country, with annualized revenue growth of 25% over the last 10 years.

Scott Watson can be reached at 770.297.1925, Ext. 571, or by e-mail at scott(at)m3as(dot)com.

via Scott Watson Joins M3 Hotel Accounting as Vice President of Sales.

Gabon new tax-free zone

Topographic map of Gabon-fr

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NKOK, Gabon, Sept 9 (Reuters) – Gabon launched on Friday what it billed as the biggest special economic zone (SEZ) in West and Central Africa, aiming to attract $1.1 billion a year in foreign investments via tax breaks.

Firms that set up in the 1,126-hectare zone in the town of Nkok 27 km (17 miles) outside the capital Libreville will be exempt from taxes on profits for 10 years, after which they will pay a rate of 10 percent.

Officials said the zone, a joint venture between the Gabonese state and Singapore-based commodities firm Olam International , will focus especially on timber processing activities.

The sector is one of the industries on which President Ali Bongo Ondimba is counting to diversify Gabon’s largely oil-based economy.

“The Nkok SEZ will be the biggest economic zone in West and Central Africa with, among other things, a processing capacity of one million cubic metres of wood a year,” Mines Minister Alexandre Barro Chambrier said at the launch, adding it would create 9,000 jobs.

The goal of $1.1 billion of annual foreign investment in the zone is equivalent to a quarter of Gabon’s annual budget.

Indian conglomerate Abhijeet said it alone planned to invest nearly $1.2 billion dollars in the next 36 months.

Abhijeet Chairman Manoj Jayaswal told reporters it would spend $800 million to build an iron alloy plant with annual production of 300,000 tonnes, and $400 million on construction of a 300 megawatt power station.

via Gabon launches tax-free zone to attract new investors | Agricultural Commodities | Reuters.

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Company Registration Specialist Offers Accounting Solution

Outsourcing accounting tasks to specialists is part of the solution to counter the challenge of talent crunch for accounting and finance professionals,” says Satish Bakhda of http://www.rikvin.com, a company registration and accounting services provider based in Singapore.

The comment was made in response to a recent survey finding which revealed that Singapore employers, looking to hire finance professionals, are finding it increasingly difficult to find suitably qualified talent. Rikvin Consultancy renders full suite of accounting services to companies in Singapore. Satish Bakhda adds, “Outsourcing accounting function will bring multiple benefits by reducing the burden on resources and because it is being managed by experts in the area it will meet the highest standards and relieve the management to focus on core tasks at hand.”

Financial leaders surveyed for the fifth annual Robert Half Global Financial Employment Monitor reported difficulties finding skilled staff and growing concern about their ability to hold on to their best employees. Singapore was also covered in the survey. Rise in demand for high quality talent, with well rounded skill set and tighter regulations were suggested as some of the challenges.

via Singapore Company Registration Specialist Offers Accounting Solution to Beat Talent Crunch.

Common SMEs tax mistakes


Tax nightmares among owner-managed businesses and SMEs are costly and time consuming, particularly relating to tax queries and disputes with the South African Revenue Services (Sars).

By simply implementing key preventative administrative steps, business owners can actively avoid or at least reduce the risk of these tax mistakes from arising.

Inaccurate accounting information Mistake

The accuracy of the underlying accounting information and supporting documentation  is directly responsible for the integrity of a taxpayer‘s income tax return.  In the case of SMEs, this integrity is often queried as a result of a lean accounting function and  confusion in distinguishing  between the financial affairs of the business owner and the business.

Sars tax auditors are first and foremost focused on testing the reliability of accounting books and records, by, for example, reviewing cash accounting records for unusually large or ad hoc payments, on the basis that these often represent private expenses which have been processed as business expenses and  claimed for tax purposes.

The importance of accurate accounting information and supporting documentation is further compounded by tax regulations requiring taxpayers to maintain proof of all income and expenditure as well as maintaining  business documentation in a particular format, for example,   VAT invoices.

via Moneywebtax – Common SMEs tax mistakes – PAYE and SITE.

New Companies Act supports honest directors

COMPANY directors who act honestly and reasonably while performing their duties under new company laws could have a valid defence if they face possible legal and criminal action, says a legal expert at Werksmans Attorneys.

Eric Levenstein, a director at Werksmans, said last week that directors who met their obligations and were able to show that they had discharged their obligations, would be able to defend themselves by showing they acted on the company’s behalf in a “reasonable” way.

“Personal liability is becoming an increasingly emotive issue for directors. They need to be aware of the circumstances in which they can be held responsible for company debts,” Mr Levenstein said.

The new Companies Act, which came into effect on May 1, penalises directors and holds them personally responsible for any losses incurred through knowingly carrying on business recklessly, or with the intent to defraud creditors and other stakeholders. It also created criminal liability for directors trading in a manner calculated to defraud creditors, Mr Levenstein said.

However, a director who meets his obligations under the new legislation would be seen as discharging his duties to the company.

George Tweedy, audit risk leader and national professional practice director at Deloitte, said the new laws also contained defence mechanisms for directors who had made bad decisions at board level.

Mr Tweedy said the new “business judgment” rule would give directors more protection from civil actions unless they were guilty of fraud or other unlawful activities.

“The Companies Act provides that a director will have satisfied his duties if he took reasonably diligent steps to become informed about the matter, does not have a personal financial interest, and has made a decision rationally in the belief that it was in the best interests of the company,” he said.

Mr Levenstein said: “Embracing honest, reasonable standards and meeting the requirements of the Companies Act would ensure that decisions made were defensible.”

via BusinessDay – New act ‘supports honest directors’.

Accounting

Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing.

Accountancy is defined by the Oxford English Dictionary (OED) as “the profession or duties of an accountant”.

Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as “the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.”

Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The people of that time relied on primitive accounting methods to record the growth of crops and herds. Accounting evolved, improving over the years and advancing as business advanced.

Early accounts served mainly to assist the memory of the businessperson and the audience for the account was the proprietor or record keeper alone. Cruder forms of accounting were inadequate for the problems created by a business entity involving multiple investors, so double-entry bookkeeping first emerged in northern Italy in the 14th century, where trading ventures began to require more capital than a single individual was able to invest. The development of joint stock companies created wider audiences for accounts, as investors without firsthand knowledge of their operations relied on accounts to provide the requisite information. This development resulted in a split of accounting systems for internal (i.e. management accounting) and external (i.e. financial accounting) purposes, and subsequently also in accounting and disclosure regulations and a growing need for independent attestation of external accounts by auditors.

Today, accounting is called “the language of business” because it is the vehicle for reporting financial information about a business entity to many different groups of people. Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditors. Management accounting is concerned primarily with providing a basis for making management or operating decisions. Accounting that provides information to people outside the business entity is called financial accounting and provides information to present and potential shareholders, creditors such as banks or vendors, financial analysts, economists, and government agencies. Because these users have different needs, the presentation of financial accounts is very structured and subject to many more rules than management accounting. The body of rules that governs financial accounting in a given jurisdiction is called Generally Accepted Accounting Principles, or GAAP. Other rules include International Financial Reporting Standards, or IFRS, or US GAAP.

via Accountancy – Wikipedia, the free encyclopedia

What is eFiling?

SARS eFiling was launched in 2003 as a free online replacement process for the manual tax return submissions. This free service allows individual taxpayers, tax practitioners and businesses to register for free and submit tax returns, make payments and perform a number of other interactions with SARS in a secure online environment.

The eFiling service is on a par with international standards, being comparable with services offered in the US, Australia, Singapore, Ireland, Chile and France.

SARS has seen eFiling in South Africa grow significantly since it was initiated. For the 2009 tax year, more than 2.7 million individual tax returns were submitted through eFiling and annually over 7.5 million returns are submitted by businesses and practitioners.

Fixed Accounting is one of those practitioners who can assist you with your tax submissions – see our Services page above. Alternatively, visit the eFiling site here.

Taxation of tips from satisfied customers

In our Tax Alert dated 18 February 2011, we discussed the South African Revenue Service’s Binding Class Ruling No 27 (BCR 27), which dealt with the question of whether there is a liability on an employer to withhold pay-as-you-earn (PAYE) from tips received by the employees from satisfied customers.

Based on the particular circumstances the ruling provided that the transfer of the tips from the employer’s bank account into the employee’s bank accounts will not constitute the payment of “remuneration” as contemplated in paragraph 2(1) of the Fourth Schedule to the Income Tax No 58 of 1962 (the Act) and would thus not be subject to PAYE.

Some confusion recently arose around the application of BCR 27 with reports in the media stating that the effect of the ruling was that tips paid by an employer to an employee are not taxable (which will obviously create a stir). This confusion prompted the release of the updated BCR 27 which specifically confirms that the ruling does not mean that tips received by employees under the circumstances as described in the ruling, nor for that matter tips received in general, are not taxable. Amounts received by way of tips constitute “gross income” as defined in section 1 of the Act and will, therefore, be subject to income tax in the hands of the recipient. The fact of the matter is that tips (as contemplated in the ruling) will not constitute “remuneration” as defined in the Fourth Schedule, which merely releases an employer from the obligation to withhold employee’s tax from these amounts, but does not release the recipient from the obligation to declare such tips for income tax purposes.

BCR 27 does not address the issue that the recipients should be aware that if the employer does not deduct PAYE from the tips, the employee may still be required to register as a provisional taxpayer. A provisional taxpayer under the Fourth Schedule to the Act includes any person who derives by way of income any amount which does not constitute remuneration or an allowance otherwise contemplated in section 8(1), but excludes a person exempt from the payment of provisional tax in terms of paragraph 18 of Fourth Schedule to the Act. In this regard, paragraph 18 of the Fourth Schedule specifically excludes any natural person who does not derive any income from carrying on any business, if the taxable income of that person for the relevant year of assessment will not exceed the tax threshold.

For instance, the tax threshold for the 2012 year of assessment for an individual under the age of 65 is R59 750. If such a person earns taxable income (not limited to tips) in excess of R59 750, such person will be required to register as a provisional taxpayer. It is therefore important to appreciate that:

while tips received by employees may not constitute “remuneration” for purposes of the Fourth Schedule to the Act, such tips may in any event be taxable (ie provided the total taxable income of the individual exceeds the relevant threshold); and
the recipient may be required to register as a provisional taxpayer and make payments for provisional tax on 31 August and 28/29 February each year, as the case may be.
In the end, the additional administrative consequences for a recipient of tips which are not subject to PAYE and where such recipient is required to register as a provisional taxpayer may prove to be more of a nightmare than if the PAYE had simply been deducted by the employer.

via Taxation of tips from satisfied customers – Lexology