Annual Financial Statements, or Financial Report, is a structured presentation of relevant financial information of a business, or individual. The complexity of a Financial Statement may vary from business to businesses depending on the industry and size of the business.
Financial Statements typically include:
- A balance sheet that shows the company’s financial position which summarises a business's assets, liabilities, and owners equity at a given point in time – usually at the end of a financial year.
- An income statement, also referred to as a profit and loss report. This shows the business's income, expenses, and profits for the financial year.
- A Statement of changes in equity, or equity statement, shows changes in equity of the business during the previous financial year.
- A cash flow statement reports on a business's cash flow activities, particularly its operating, investing and financing activities.
Financial Statements are necessary to:
- Make business decisions
- Create a budget
- Attract potential investors
- Apply for finance or a loan
While most accountants can prepare an Annual Financial Statement, not all accountants are allowed to sing off on a Financial Statement. This is mainly to ensure that the accountant signing off on a Financial Statement has sufficient knowledge and is qualified to understand the implications of the content in the statement.
We’ve included a table with more information below, but in short Accounting Officers may sign off Financial Statements for Close Corporations, while an Auditor is needed to sign off Company Financial Statements.
Dynamitech have both accountants and a Chartered Accountant in-house to sign off Financial Statements for Close Corporations and Companies.
|AUTHORISED TO PERFORM:||USUAL AREA OF SPECIALISATION||RULING BODY||FULL NAME OF RULING BODY|
|CA||Chartered Accountant||If Registered also with PAAB||Yes||Financial management and consultancy||SAICA|| The
South African Institute of Chartered Accountants
|AGA||Associate General Accountant||No||Yes||General Accounting|
|AAC||Associate Accounting Technician||No||No||Bookkeeping up to Trial Balance|
|RAA||Registered Auditor and Accountant||Yes||Yes||Auditing|| IRBA
Regulatory Board for Auditors
|ACIS||Chartered Secretary (Associate)||No||Yes||Company Secretary||ICSA|| The
Southern African Institute of Chartered Secretaries and Administrators
|ACCA||Associated Chartered Certified Accountant|| UK
and Europe - Yes
South Africa - No
|Yes||All Round with specialised sub-categories and diploma programmes||ACCA|| The
Association of Chartered Certified Accountants
|FCCA||Fellow Chartered Certified Accountant|
|CAT||Certified Accounting Technician||No||No||Bookkeeping up to Trial Balance|
|CIMA (Associate)||Chartered Management Accountant (Associate)||No||Yes||Management and Cost Accounting||CIMA|| Chartered
Institute of Management Accountants
|Professional Accountant (SA)||No||Yes||All Round with specialised sub-categories||SAIPA||
African Institute of Professional Accountants
|No||Yes||General Accounting||SAIBA|| The
South African Institute of Business Accountants
|IACAO||Registered Accounting Officer||No||Yes||All Round||IAC|| Institute
of Administration and Commerce
|IACAT||Registered Accounting Technician||No|
|CJBIcb(SA)||Certified Junior Bookkeeper||No||No||Bookkeeping, Payroll, SARS returns (not income tax)||ICB|| Institute
of Certified Bookkeepers
|CSBIcb(SA)||Certified Senior Bookkeeper||Bookkeeping, Payroll, SARS returns, Cost & Management Accounting fucntions|
|CTFAIcb(SA)||Certified Technical Financial Accountant||Bookkeeping, Payroll, SARS returns (including Income Tax), Cost & Management Accounting fucntions, Accounting Control|
|CFAIcb(SA)||Certified Financial Accountant||Yes||All accounting functions including Accounting Officer for Close Corporations|
|Registered Tax Practitioner||Tax Practitioner||Depending on other Qualifications||Depending on other Qualifications||Tax planning, returns and Advice||SARS|| South
African Revenue Services
Source: Find an Accountant