Accounting is one of the most important functions for any company as it allows the firm to keep a track of their financial operations and business efficiency. Accurate financial data allows the company heads to make informed and sound business decisions and improve the profitability of the organisation. Having an in-house accounting team can be a great idea but can be an expensive and time consuming affair.
For this reason, more and more companies in the Cape Town are choosing to outsource accounting services to an experienced and professional accounting firm. Harvey Administration Pty Ltd is one such provider of accounting services for Cape Town firms who can cater to all your accounting needs in the most efficient manner.
Outsourcing accounting services to us will assure you with reliable accounting services and leave you with the time required to focus on other important business functions. A professional accounting team, will bring you high end expert accounting service.
Commonly referred to as ‘Annual Accounts’. Small businesses can submit much simpler accounts than their bigger counterparts.
Financial Statements comprise of a set of financial reports showing the financial performance of their company (through a Profit & Loss statement) during the year and the financial position (through Balance Sheet) at the end of the year. In addition, they also highlight important information through disclosures that may be of interest to any stakeholders in the business.
What Information Do
Statutory Accounts Include?
01.Profit & Loss (P&L) Account
Profit & Loss (P&L) shows the performance of a business over a given period of time. It would typically show a summary of income received and the types of expenses incurred. Of course, every business is unique.
A retail business for example with multiple stores may want to see income & expenses split by each individual store, whereas a construction business may want to see profitability of each project it undertakes.
P&L produced for management should therefore be tailor made keeping in mind the nature of business, the level of detail required, the frequency and the layout.
A Balance Sheet shows the financial position of a business at any given point in time.
A Balance Sheet should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor and inventory days etc which can highlight areas of risk so you are in a much better position to plan any cashflow needs.
The Auditors Report is only required for Companies carrying out an Audit (whether Compulsory or Voluntary Audit) and is provided by the Company’s auditors. After a review they will indicate whether the accounts give a true reflection of the business.
More Accounting Related Services
Our Services Promise
Full Accounts must include all the key reports such as profit and loss, a balance sheet and detailed notes to the accounts. In addition to this, full accounts must also include an accountant’s report and a director’s report. Both of which provide further important information about the company.
Companies that meet the Small Business or a Micro Entity criteria, can send a more summarised version of full accounts called the ‘Abridged Accounts’. Abridged accounts provide less information about the company and has a simpler balance sheet (they only need to include the Balance Sheet and a reduced number of notes to the accounts). They do not include profit and loss. These can be useful if you do not want to include details about the business such as the gross margins or the profits the business made during the year.
A company is dormant if it has had no ‘significant accounting transactions’ during the accounting period or may have recently been set up but not traded as yet.