Over the years, I have come across many a practitioner / entrepreneur who runs their practice / business and yet rarely glances at their annual financial statements – those things you do for SARS, or possibly the bank manager, but which cost you an arm and a leg. Financial Statements are another tool in the entrepreneurs’ arsenal in managing their business, and it should be so in your practice as well.

While you may find the bookkeeping and financial admin side of your business the most daunting, understanding a few basic concepts will help you understand what your accountant is trying to tell you. It's important to have some basic knowledge so that it's harder for someone to pull the wool over your eyes. This article aims to provide you with that knowledge by explaining and providing examples of common accounting concepts.

Some describe the balance sheet as a "snapshot" of the company's financial position at a point (a moment or an instant) in time. For example, the amounts reported on a balance sheet dated December 31, 2012 reflect that instant when all the transactions through December 31 have been recorded. It summarizes the company's assets, liabilities and shareholders' equity at a specific point in time. Use this balance sheet template to create your own balance sheet.

It has been proven that many businesses failures are caused by poor financial management and record keeping. This article outlines ten ways in which you can survive businesses failures that are caused by poor financial management and record keeping. Learn how to manage your finances better by limiting your capital expenditure, not cutting back on marketing, learning about financial management, reviewing your debtor management system, reviewing your creditors, among other strategies.

There are a number of instances when you may need to determine the market value of a business. Certainly, buying and selling a business is the most common reason. Estate planning, reorganization, or verification of your worth for lenders or investors are other reasons. Valuing a company is hardly a precise science and can vary depending on the type of business and the reason for coming up with a valuation. This article looks at some of the common methods used to determine the value of a business.

In order to comply with VAT regulations, for any sale of more than R50, you have to issue a tax invoice, with the word "tax invoice" printed on it. This is the most important document in the VAT system. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply as well as the parties to the transaction. This includes the value of the goods/services excluding VAT, and the VAT amount (calculated at 14% of the above amount), among others.

There are various ways to ensure that your business does not go down or be tied up in endless red tape because of the debt or liabilities you have left behind at your death or should you become disabled. A business is a valuable asset, built up by the dedication of its owners. Every care should therefore be taken to protect it for the generation of future income and as a cornerstone of wealth. This article looks at how to secure your business's financial future.

Why do I need financial statements if I have a small business? Well, if you run a registered company, having financial statements is a requirement for three reasons. You need financial statements if, in future you need funding for your business; because it's a legal requirement to prepare these statements; and to prevent you from declaring incorrect taxes to SARS. This article explores these three reasons in more detail.

For a growing business, having a manageable level of debt can be an effective way of doing business. While some small business owners are proud of the fact that they've never taken on debt, that's not always a realistic approach. The question for many small business owners is: How much debt is too much? The answer to this question will lie in a careful analysis of your cash flow and the specific needs of your business and your industry. This article will help you analyze whether taking on debt is a good idea for your company.

You can get an idea of an accountant's level of skill by looking at their experience and qualifications. But how can you tell if they can be trusted with your sensitive financial information? You can always ask business colleagues and acquaintances if they know a good bookkeeper and hope you get a personal recommendation. But what other options do you have? This article looks at the factors you should consider when making this crucial business decision.

Through financing small and medium enterprises over more than 37 years, Business Partners Limited (BUSINESS/PARTNERS) has built up an immense store of knowledge and expertise invaluable to any business. It has now found a way of giving South Africa’s entrepreneurs quick and free access to that gold mine of information and insight. The Entrepreneurs Growth Centre offers entrepreneurs business insights, solutions, and information.

Auditing in relation to SMEs has always been a debatable and contentious issue. Out of just about every SME owner that I have met, almost all would opt to have their business audited. That is, of course, if there was a combination of a reasonable price attached to it, together with a professional and efficient service guaranteed. This article explores why regular auditing is beneficial for SMEs, and what SMEs should consider before being audited.

You may think that because you have good bookkeeping and accounting processes in place and your cash flow is under control, you can sit back and relax. Unfortunately, you'd be wrong. This is the perfect time to do an in-depth analysis of where your business stands financially. If you're not so clued up about the accounting and financial side of your business, you may not realise how an in-depth financial analysis can benefit your company. Learn how to get the most out of your financial information.