Frequently Asked Questions
Annual Financial Statements
Annual financial statements FAQ
Below follows a selection of the most frequently asked questions relating to our Annual Financial Statements service. We trust the information will be of value to you. If you have any additional questions, please feel free to contact us directly.
I run a small business with one partner, and two staff members. Do I really need to compile an annual financial statement?
An annual financial statement (AFS) is a reflection of the health of your business. Assuming you plan to grow and expand your services, you’ll need an overview of what is happening in your business to see how well you’re doing, what your profits are, your cash flow situation, and your assets and liabilities. These are all reflected in your AFS, which is an essential summary of your business. It keeps all stakeholders informed of the status of the business and paints a picture of your creditworthiness and potential lending ability. It is also required by SARS for tax purposes and for independent company audits.
What does an annual financial statement consist of?
Typically, your financials will include a balance sheet which consist of assets, liabilities and equity (the difference between what your business is worth and what you owe); an income statement that depicts your business’s income and expenses over a period of time; and a statement of cash flow – split into operations, investing and financing – that shows how your business generated cash flow and what it was used for. When submitting an AFS to stakeholders or SARS, for instance, it is often accompanied by management or an auditor notes.
Why should I choose Grid Forensic Accounting to compile my annual financial statements?
The Grid Forensic Accounting team consists of experience and qualified chartered accountants who align all work with the latest relevant South African legislation and International Financial Reporting Standards (IFRS) requirements. In addition:
- We are efficient and have fast turnaround times.
- We use the most up-to-date financial reporting software.
- We follow best practice in order to ensure your report is fully compliant with SARS’ submission requirements.
- We operate in line with the South African Companies Act.
- We perform the duties of an Accounting officer.
- We get your company audit-ready.
How long will it take for you to compile a annual financial statement?Section
The Grid Forensic Accounting team is very time conscious and deadline driven, and after reviewing all the information at hand, will be able to assess the requirements and estimate the time frame needed to compile your annual financial statement.