Small and Medium Enterprises (SMEs) are vital economic contributors and job creation catalysts in nations all over the world. These businesses drive economic diversification by developing unsaturated sectors of an economy, while facilitating local, regional and international growth – especially in the technological sphere of commerce. Some challenges faced by SMEs in South Africa that outsourced business accountants are able to remedy include financing and obtaining credit, limited time to grow the company, as well as regulatory compliance. Let’s have a look at how business accountants are improving the SME sector of South Africa…
You might think that your small or medium-size business doesn’t really affect the South African economy, but you’d be wrong! Researchers estimate that small and medium-sized companies make up around 90% of formalised businesses in South Africa, while contributing around 34% of the GDP and providing employment for about 60% of the South African labour force. Owing to the fact that most SMEs are unable to employ full-time accountants and tax professionals, the need for outsourced business accounting agencies has grown along with the SME sector in recent years.
So, why are business accountants so important to the SME sector of South Africa? Thanks to organisations like RBK Business Accountants, small and medium enterprises are able to continue creating jobs and contributing to the South African economy – without having to reduce profits by employing full-time accounting and taxation staff. This allows business owners more time to continue growing their organisations from strength to strength, thereby contributing meaningfully to the economy.
A small or medium-sized enterprise cannot contribute to the economy and create jobs if it is not in the taxman’s good books. Using superior knowledge of the South African tax laws and regulations, business accountants are able to advise company owners regarding tax legislation and how to legitimately minimise their tax burden. Here are some taxation services offered by business accountants to SMEs in South Africa:
• Tax Registrations
Handling of VAT, PAYE, SDL, company and individual tax registrations.
• Tax Clearances
Procurement of tax clearance certification.
• Company Tax Returns
Timeous submission of company income tax returns, provisional tax returns and PAYE.
• Supplementary Declarations
Submission of additional taxation documentation should it be required.
• VAT Assistance
Professional value added tax management and guidance.
• Consultation and Liaison with SARS
Addressing tax related queries, including visits to SARS branches if necessary.
Owing to the fact that SMEs make up around 90% of formalised South African businesses, it stands to reason that the more growth SMEs experience themselves, the greater the economic growth of the country. It is this growth that business accountants seek to ensure for small and medium-sized organisations, by offering professional outsourced business accountancy services including:
• Business Plan Development
These are needed when applying for loans or investments.
• Cash Flow Forecasts
If this isn’t correctly planned and controlled, it could have negative business repercussions.
• Management Accounting
Providing key financial information to decision makers in a business.
• Annual Financial Statements
Companies must prepare financial statements within six months after year-end.
• Independent Financial Statements Review
Some financial statements require independent reviewing.
If you’re looking for professional outsourced business accountants in Durban, give RBK Business Accountants a call today. We offer all of the above business taxation and accounting services, as well as business advisory services, and more! Sign up with RBK Business Accountants and get a FREE profit-making consultation!