It is of paramount importance for small and medium sized businesses to know and understand the importance of proper recordkeeping and financial statements interpretations. In so many instances business owners do not assess performance and growth of their businesses and unfortunately this has led to unexpected business failures and closures in South Africa and Africa as a continent. Monitoring business performance through record keeping is vital, hence the need for a qualified accountant.
By law taxpayers (Companies and Individuals) are required to keep certain tax records for 5 years. Businesses are also required to prepare Annual Financial Statements according to reporting standards i.e. International Financial Reporting Standards (IFRS) or International Financial Reporting Standards for Small to Medium sized entities (IFRS for SME’s).