Monday, July 4, 2011

The importance of an Accountant

Once you begin your own company in South Africa, you will need to appoint an accountant to it, even if you expect things to be slow in the initial stages. A lot of individuals may perhaps be a little put off by this prospect, but it truly is not that big of a deal. Any time you appoint an accountant to a business, you one way or the other remove yourself from the 'dream' or idea, and all of a sudden the business turns into a 'real' business from the moment an accountant is assigned. All of a sudden things grow to be formalized. At the very least this is certainly the notion that we commonly have.

Mentioned above previously, for any new company, an accountant needs to be selected. Some may hear this word and instantly think that it is going to cost them thousands right from the start. This is not always true. It is vital to distinguish between an accountant and a chartered accountant or auditor. The last mentioned is needless to say a whole lot more expensive, but is only needed for larger companies with extremely elevated revenue and cash flow.

Normal accountants nevertheless, are generally a great deal less expensive and more adaptable in their methodology to your business. Their month to month fee structures usually also fluctuate from one to another. All things considered, what this amounts to is that although you will need to designate someone such as this to supervise your business activities in so far as cash flow is concerned, it doesn't have to be an expensive exercise. Nevertheless, important to remember is that any financial officer in this capacity must have the obligatory certifications and qualifications to be able to be successfully appointed and recognized by the CIPC.

The CIPC is the committee responsible for all company registrations in the South African business place, and just about every new company established in the republic will need to be documented via this governing body. Fundamentally they make certain that, among other things, your business name is unique enough to be able to be used in the market place. Other obligations consist of the regulation of Intellectual Property, patents and so forth.
Coming back to the subject though, the following accounting professions for purposes of selection as accounting officers to companies are in this article. By the way there exactly 10 for the time being:
The South African Institute of Chartered Accountants (SAICA), Auditors registered in terms of the provisions of the Auditing Profession Act, 2005(CA), The Southern African Institute of Chartered Secretaries and Administrators (ICSA), The Chartered Institute of Management Accountants (CIMA), The South African Institute of Professional Accountants (SAIPA), THE IAC who have obtained the Diploma in Accountancy (IAC), The Association of Chartered Certified Accountants (ACCA), The Chartered Institute of Business Management (MCIBM), The South African Institute of Business Accountants (SAIBA), The South African Institute of Government Auditors (SAIGA)

If the individual you wish to designate to your business as accounting officer is part of, or an active member of any one of the bodies mentioned above, you should not have any problem in appointing them, and getting your business registered without this as a potential challenge.