Annual Financial Statements
FAQ
Legislation requirements for Nonprofit Organisations
According to Sections 18 and 19 of the Nonprofit Organisations Act of South Africa, No.71 of 1997, an organisation must produce yearly reports, including annual financial statements to the NPO Directorate once it has been registered as a NPO.
Legislation requirements for Nonprofit Companies and Private Companies
According to Section 30 of the Companies Act of South Africa, No.71 of 2008, annual financial statements must be prepared within 6 months after the financial year end.
Why prepare annual financial statements?
Apart from the legislation requirements, annual financial statements indicates the financial position (all assets and liabilities)
together with the net operating results (all income and expenses)
You cannot steer a ship if you don't know which direction you are going.
Financial institutions may request financial statements for financing applications.
In order to complete and submit your income tax return, you need to obtain the figures from the financials.
When must I prepare the first set of financial statements?
From the date of registration of your company, to the year end. Thereafter each year at your company's financial year end.
Do I need to be audited or can I simply have an independent review or compilation?
A public interest score (PI score) will be calculated to ensure you are compliant with the framework selected.
What is the cost?
Initial once off setup cost: R2,000 (excl from below cost)
The setup cost entails the setting up of the template on the program.
It is only payable for the first year.
Two options are available to you:
1) Compilation
R5,500
No review has been performed on the figures and no opinion are given in the financial statement's report issued.
2) Independent review
R7,000
Review procedures are performed, giving the user a level of assurance
with regard to the accuracy of the figures.
An independent reviewer's report is included in the financials.
