Saica welcomes Companies Act

South African Institute of Chartered Accountants

The SA Institute of Chartered Accountants (Saica) on Thursday welcomed the new Companies Act as good for small business.

Small and medium-sized companies which had previously been obliged to bear the cost of an audit might now be exempted as the act introduced new criteria, said Saica.

The decision would depend on a newly-introduced public interest score.

“Under this system, a company is allocated points according to the number of its employees, its annual turnover, its stakeholders and the level of third party liabilities at the end of the financial year,” Saica spokesman Ashley Vandiar said.

Points are given for the average number of employees throughout the year, one point per million rand of debt financing, one point for each million rand of turnover, and one point for every individual with a beneficial interest, including shareholders.

Companies with 350 points or more must be audited.

Any company, regardless of point scores, with more than R5 million held for a client in a fiduciary capacity also had to be audited.

Companies scoring between 100 and 350 points must have an independent review conducted by a registered auditor or a chartered accountant.

Those scoring less than 100 are required to have an independent review conducted by anyone who qualifies as an accounting officer, unless circumstances indicate otherwise.

Close corporations are treated the same way as companies.

The cost savings for companies exempted from an audit should be ploughed back into the business or used to reduce debt, said Vandiar. – Sapa

via Saica welcomes Companies Act – Business News | IOL Business | IOL.co.za.

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SAICA extends tax offering to public

Institute of Chartered Accountants Australia -...

Johannesburg, Wednesday, 25 April 2012 – As tax legislation continues to be more complex and turbulent, the South African Institute of Chartered Accountants Saica has launched the Tax Suite, a tax knowledge-based platform aimed at keeping local practitioners, advisers and just about anyone that has anything to do with tax abreast of international and local best practice.Offered to both Saica members and non-members alike, the subscription-based web product is a comprehensive and broad tax resource offering on the South African market, backed by the countrys authoritative chartered accounting body.

Chartered Accountants already have access to Saicas normal tax resources, but the Tax Suite goes beyond this. It provides a great opportunity for all participants in the tax space, not affiliated with the institute, to receive a range of services at CA-quality levels not yet seen in the marketplace,” explains Saicas Standards Senior Executive Muneer Hassan pictured.According to Hassan, no other tax resource on the market delivers the same value-add that the Tax Suite does. Not only is there value inherent in court case analyses, Tax Suite newsletters and journals, and in the business matching feature, but the Tax Suite is staffed by a uniquely qualified team.There are, according to SARS, more than 34,000 tax practitioners in South Africa. Hassan believes that the Tax Suite service will find wide appeal from both members who practice in tax, and from a much wider audience of tax practitioners. “We have already received positive feedback from the legal fraternity, and the broad tax advisory industry. There are competitive offerings,” says Hassan. “but none that have the depth of staff, or value that our Tax Suite provides. We are confident that this service will become South Africas premier tax reference site in a short space of time.”

via Moneywebtax – Saica extends tax offering to public – Integritax.

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Impact 2012 budget will have on business owners

LONDON, ENGLAND - NOVEMBER 01:  George Osborne...

Although Minister Pravin Gordhan’s 2012 Budget Speech (SA’s first-ever R1 trillion budget speech) received mixed reactions from the public. He repeatedly made a point that in order for the country to effectively address inequality and poverty, a partnership between government and the private sector was critical. He also revealed a number of tax-related changes that will impact and affect small business owners.

According to Kobus Engelbrecht, Marketing Head for Sanlam Business Market, the key change of the budget speech is the implementation of dividend withholding tax on 1 April 2012. This will bring an end to secondary tax on companies, and entails that dividend withholding tax at 15% will be paid on any dividend paid out to the shareholders of the company. The Minister further announced that businesses with a revenue of less than R1 million are likely to be given the option of making payment for turnover tax, VAT and employees’ tax at twice-yearly intervals from 1 March 2012. Businesses that make less than R1 million would be able to file a single combined tax return on a twice-yearly basis. This means that the number of returns required for these taxes will fall from about 18 per year to only two per year.

“The tax exclusion amount on the disposal of small business when a person is over the age of 55, will go up from R900 000 to R1 800 000. The market value of assets allowed for small business disposal for business owners over the age of 55 will increase from R5 000 000 to R10 000 000,” says Engelbrecht.

Some of the key aspects of the National Budget in relation to individuals

Karin Muller, Head of Sanlam Growth Market Solutions, shares some insights:

• Minister Gordhan mentioned personal income tax relief of R9,5 billion. The majority of this will go to lower income earners.

• The most talked about items on the budget speech (on social networks) are the so-called “sin taxes”: tobacco products will increase between 5-8%. A 750ml bottle of spirits will cost you R6 more (a 20% increase) and a 340ml can of beer will cost 9c more (a 10% increase).

• More capital will be spent on nursing institutions and the rebuilding of five tertiary training hospitals.

• Currently there are not enough incentives to make the public save and Minister Gordhan proposed a new saving mechanism to help. This is still a proposal and a discussion document will be published in May 2012. The mechanism will enable you to save without paying tax on the returns you earn, which will surely enable many South Africans to make their savings work harder.

• If you’re under the age of 45, you can deduct up to 22,5% of your income if you contribute towards your retirement, irrespective of whether you are saving in a pension or provident fund (and irrespective of whether you or your employer makes the contribution). These deductions will, however, be limited to a maximum annual deduction of R250 000 for people younger than 45 years and R300 000 for people older than 45 years.

via The impact the 2012 budget will have on business owners – Men’s Lifestyle, Sports, Health, Fashion Tips & Business Network | Destiny Man.

Turnover Tax is dangerous for small business

People filing tax forms in 1920

DON’T BE FOOLED!

Warning: New Turnover Tax from SARS could be SARS’s way of ripping you off!

Remember the saying: When it sounds too good to be true, it probably is!

Why would SARS offer you a New Tax System if they were going to make less money?

Of course they are going to make more money out of Turnover Tax!

And this is how they are going to do it:

They are going to try convince thousands of young small businesses to give up their virtual NO TAX status for one in which they could be liable to pay up to R38 000 EXTRA TAX EACH YEAR!

The only reason SARS can give is that you may need to fill in 7 or so less TAX FORMS!

But who cares?

For R38 000 I’ll fill in 20 extra tax forms!

Example:

Current system:

Small CC business turning over R999 999 per year

has no profit after expenses and member draws salary of R200 000 and pays R33 430 on salary

R33 430 is the ONLY TAX this business pays

Turnover Tax system:

Small CC business turning over R999 999 per year

has no profit after expenses and member draws salary of R200 000 and pays R33 430 on salary

R33 430 PLUS R37 930 TURNOVER TAX =

R71 360 is the TOTAL TAX this business pays!!

Now please, where is the benefit in that?

Turnover Tax is a SCAM – A scam from the heart of government, trying to rob the struggling, poor man in the street and having the cheek to ask him to thank them for it!!

Our advice: Don’t touch turnover tax with a barge pole.

Government should be sent away ashamed of itself for such brazen greed and deception with its tail between its legs, to go think up some other scam to throw at the rich for a change…

Small businesspeople are going to have to do their calculations VERY carefully before jumping into the turnover tax system boots and all!

Comment: info@turnovertax.co.za

via Turnover Tax is dangerous for small business

Payment pitfalls for provisional taxpayers

Over the past few years, significant changes have been effected to the provisional tax rules. However, not all provisional taxpayers have kept abreast of these changes. The result? These taxpayers often do not fully understand their tax obligations and end up over-paying or, worse, under-paying their tax and having to fork out significant amounts of cash to pay the South African Revenue Service (SARS) the resultant penalties, additional tax and interest for non-compliance.

This article sets out the more important tax rules of which individual provisional taxpayers should be aware. It also highlights some common pitfalls that are usually overlooked and provides some tax tips.

via Payment pitfalls for provisional taxpayers – Personal Finance Tax | IOL Business

Good accounting improves business competitiveness

Salford Business School

Image by University of Salford via Flickr

BY PHILLIP CHICHONI

The managing director of Swiss bank, UBS,  is in trouble. The board wants to fire him for allowing over US$2 billion to be lost through the hands of  rogue trader Kweku Abodoli. One of the largest financial institutions in the world, UBS’s financial control systems failed to detect fraudulent activities and suffered a huge loss as a result.

I asked a number of small business owners if they knew how much money they were making each year. Frighteningly, the majority did not know exactly. As long as there was cash in the bank, they did not bother themselves with much else as regards the financials of the company. So if an employee finds a way of defrauding them, they would have no way of detecting it.

Lack of accounting and financial control systems is a big problem among SMEs. They cannot measure their success, growth and efficiency. With no budgets and cash flow management systems, business decisions are made in the dark and on an ad-hoc basis. An accounting system helps in managing finances, maximising returns on investments while improving the competitiveness of businesses.

Your accounting system should provide an accurate picture of your business and how it is performing. Setting up a good accounting system and understanding the numbers produced can make a major difference in how your business fares in the long run. The financial statements produced from your accounting system will help you in several ways.

HOW TO KNOW IF YOU ARE REALLY MAKING MONEY

A good accounting system should tell you how much money you are making in terms of total sales, the cost of the goods sold, expenses and net profit. Success in business is measured in financial terms. The financial results at the end of a period will reflect how successful the business was in the given period. Comparing the financial results over time will show if the company is growing and improving in efficiency.

via SME Chat:Good accounting improves business competitiveness.

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.