THE IMPORTANCE OF COMPLIANCE

Posted by Bernard Schoeman on 01 July 2020.



Bernard Schoeman

CA(SA), Post Graduate Diploma Accounting, BCom

The Tax Shop Head Office

More about Bernard Schoeman

Bernard studied BCom majoring in information systems and accounting at the University of Cape Town and qualified as a Chartered Accountant (SA) in 1997 after completing of his articles with Deloitte & Touche. Bernard has extensive international and local experience having worked for nearly three years with financial institutions in the UK (London) and having audited numerous companies listed on the JSE in South Africa. He is a member of the South African Institute of Chartered Accountants.
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It is no secret that the future of the Accounting Profession can no longer rest upon compliance work only.  As systems evolve and become more automated, less importance is placed upon doing compliance work and focusing more on advisory work.

Despite this shift in focus, lockdown clearly taught us that businesses that are not compliant have suffered the most.  Urgent financial aid has been required to assist businesses during this difficult time.  Whether it be claims from the UIF (TERS or otherwise), grant and loan applications from various government and private sector organisations or financial relief in the form of delayed tax payments, these have all required businesses to be up-to-date with their affairs.

Here is a quick checklist →Test yourself to see whether your business is truly compliant:

  • Financial record keeping system is accurate and up-to-date.
  • Financial statements are up-to-date.
  • Business is registered for all the correct taxes at SARS and all returns and payments are up-to-date.
  • Business information is up-to-date at the CIPC, SARS, banks and other relevant organisations.
  • Annual returns are filed up-to-date at the CIPC.
  • Business is registered for UIF with the Department of Labour and all declarations and payments are up-to-date.
  • Business is registered for Workmens Compensation with the Compensation Fund and all returns and payments are up-to-date.

There are many other compliance requirements which are not listed above and which are more specific to certain types of businesses or organisations.  For example, if you are registered as an NPO you need to submit annual reports to the Department of Social Development.  Attorneys are required to submit financial reports to their Law Society and estate agents are required to submit financial reports to the Estate Agency Affairs Board.  Registered schools have their own rules…and so, the list goes on.

It is critical for all organisations to remain compliant at all times, not only to conform with the law (and to avoid penalties and fines which can increase financial pressure) but also to be prepared for opportunities when they arise.  Sometimes, businesses have to react quickly to a favourable offering and more often than not, it requires that the business be fully up-to-date on all compliance issues.

As a business owner or head of an organisation, we understand that you do not have time to ensure that you are fully compliant at all times.  That is why The Tax Shop is here to assist you.  We strive to make life easier.  If you need help with your compliance, please contact a Tax Shop near you.