Authored by:  Karl Smith, Education, Training and Membership Manager at the South African Institute of Professional Accountants (SAIPA)
 
If you’re a professional recruiter and a client asks you to source an accountant, you might immediately think of a CA. Or perhaps they specifically request a CA because they’re unfamiliar with the various accountancy designations.
 
However, not all accountants are CAs. There are many other designations in the accountancy profession, each signifying a specialisation or range of expertise.
 
Recruiters who know and source the right designations will match their clients with the type of accountants best suited to the position on offer.
 
Professional bodies
South Africa is home to several professional bodies which, in the accountancy field, are called professional accountancy organisations (PAOs). The designation an accountant holds depends on which PAO they are a member of. Below is a list of the main bodies and a short description of their popular designations, which are also registered on the SAQA database.
 
SAIPA (South African Institute of Professional Accountants)
Professional Accountant (SA) – SAIPA’s signature designation – performs all accountancy duties except signing off public financial statements and independent audits but including independent reviews.
 
After obtaining a SAIPA-approved degree, graduates who wish to become a Professional Accountant (SA), must complete three years of practical training at a SAIPA Approved Training Centre (ATC).
 
The designation is well positioned to provide accountancy services and strategic business advice to SMMEs and large organisations alike.  In recognition of the need for excellence in business advisory to stimulate economic growth, the Institute has established a Centre of Business Advisory (CoBA). Both members and non-members who qualify may gain access to the Centre.
 
Professional Tax Specialist (SA), Professional Tax Practitioner (SA) – Because of the complexity of the processes and laws related to tax, these designations specialise in providing the full range of tax services. In addition, Professional Tax Specialists perform higher-level duties, such as writing tax opinions, mediating tax disputes and representing tax payers in court.
 
At the time of writing, SAIPA is celebrating 40 years of dedicated service to the accountancy profession, distinguishing it from newer bodies and those administered on a part-time basis.
 
Website: www.saipa.co.za
 
SAICA (South African Institute of Chartered Accountants)
CA(SA) - A Chartered Accountant can perform all accountancy functions. In addition, as a Registered Auditor (RA) with the IRBA (see below), only a CA can legally carry out an independent audit of an organisation’s financial compliance and give professional assurance of its public financial statements.
 
Website: www.saica.co.za

IRBA (Independent Regulatory Board of Auditors)
RA (Registered Auditor) – By law, many organisations – especially those listed on the JSE – must be audited annually for financial compliance by a qualified independent professional. Only Registered Auditors, who must be CAs, may perform this function.
 
Website: www.irba.co.za
 
ACCA (Association of Chartered Certified Accountants)
ACCA (Associated Chartered Certified Accountant) – This designation aims for the broadest set of skills across different sectors and can perform all accounting duties. Unlike their UK counterparts, South African ACCA members cannot sign off public financial statements or perform independent audits.
 
Website: www.accaglobal.com/za/en.html
 
CIMA (Chartered Institute of Management Accountants)
ACMA (Associate Chartered Management Accountant) – Whereas financial accountants assess the value of past business, management accountants use financial data for planning and forecasting. They therefore facilitate strategic decision-making and help business leaders improve corporate performance.
 
Website: www.cimaglobal.com/Our-locations/Africa/South-Africa
 
IAC (Institute of Accounting and Commerce)
FAC (Financial Accountant in Commerce), FAP (Financial Accountant in Practice) and IAP (Independent Accounting Professional) – These designations focus on the preparation of financial statements, the duties of an accounting officer and performing independent reviews, respectively, in support of Section 29 of the Companies Act, 71 of 2008.
 
Website: www.iacsa.co.za
 
SAIGA (South African Institute of Government Auditors)
RGA (Registered Government Auditor) – The RGA offers the same impartial assurance and compliance services to the public sector that the CA does to the private sector. This includes independent auditing of government entities and professional assurance on the validity of their financial statements.
 
Website: www.saiga.co.za
 
SAIT (South African Institute of Tax Professionals)
GTP SA (General Tax Practitioner), MTP SA (Master Tax Practitioner) - Tax laws and processes are so complex that some accountants specialise exclusively in this area. General Tax Practitioners offer general tax services while Master Tax Practitioners must have 10 years experience with appropriate qualifications.
 
Website: www.thesait.org.za
 
IIA (Institute of Internal Auditors South Africa)
PIA (Professional Internal Auditor), CIA (Certified Internal Auditor) – Internal auditors do the same work as a CA but from inside an organisation. They are employed or engaged to ensure the organisation remains compliant and their financial statements are correct before an independent audit takes place. Of course, they must be competent accountants to assume this role.
 
Website: www.iiasa.org.za
 
The right accountant
Apart from independent audits, all accountants are qualified to perform every other accountancy duty. However, specialists have greater experience in one area while other designations offer better experience over a range of services.
 
Knowing the experience profile of the different designations will help recruiters identify the most suitable accountant for a position. For this, their clients will be most grateful.

ENDS
 
MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

Authored by:  Shahied Daniels, Chief Executive at the South African Institute of Professional Accountants (SAIPA)
 
The primary responsibility of every accountant is to serve the public interest first. But, as asked by the Roman poet Juvenal, “Who will guard the guards themselves?” Who ensures accountants remain accountable?
 
This is the function of professional accountancy organisations (PAOs), like the South African Institute of Professional Accountants (SAIPA). And it is the reason every accountant should be a member of such an association.
 
Obligations of the PAO
The history of accountancy can be traced back more than 7,000 years to Mesopotamia. It started with humble occupations, such as shepherds, who were required to return the same number of animals put in their care and give account of any gains or losses.
 
As business became more complex, the demand for accountability and faithful representation grew. The modern PAO exists not only to serve its members’ needs but to strengthen these two essential pillars in the public interest as well.
 
They are bound by a self-regulatory mandate to ensure their affiliates comply not just with standards and regulations but legislation as well. So PAOs are likewise accountable to the public to minimise the commission of financial crimes by their members.
 
All PAOs fall under the oversight of one or other global standards setting body. In SAIPA’s case, this is the International Federation of Accountants (IFAC). As an IFAC member, we are obliged to conform to its operating model for PAOs, which includes a strict disciplinary process.
 
Disciplining accountants
In fact, SAIPA has four distinct practices to ensure its members adhere to its high standards for professional excellence and ethical conduct.
 
First, everyone who applies for SAIPA membership must submit to a Professional Evaluation (PE) that tests both their technical competence and ethical appreciation. This ensures each candidate meets the minimum standard of competency required to deliver work at a level of proficiency demanded by society. Anyone unable to pass the PE or meet the Recognition of Prior Learning (RPL) requirements will not be admitted as a member of the Institute.
 
Second, we have an institutional Code of Conduct. This is modelled around the International Code of Ethics for Accountants, itself published by the International Ethics Standards Board for Accountants (IESBA). Every year, our members must make a pledge to remind them that their adherence to this Code is obligatory. The pledge can be compared to the Hippocratic Oath taken by doctors, with members solemnly swearing to live by its guiding principles. That ritual is followed by a one-hour session that reviews their professional obligations and the consequences of violating them.
 
Third, SAIPA’s investigative and disciplinary process is of the highest order. It employs legal expertise to address claims of wrongdoing, while handling cases in a fair and equitable manner. An accountant found guilty of misconduct will be disciplined according to the severity of their transgression. This can range from having their membership revoked to a simple fine or warning.
 
Fourth, our continuing professional development (CPD) programmes demand that our members pursue lifelong learning to maintain their competence. SAIPA has made ethics a compulsory CPD topic to ensure this quality is deeply embedded within our community. In addition, CPD capacitates members to remain relevant in a changing environment marked by 4IR and increasing regulation of the profession. Finally,  CPD ensures  members carry out their duties appropriately in client, employment, and other relationships.
 
Although implementation varies, other PAOs typically follow a similar model.
 
Public protection
There are several mechanisms available to the public to ensure they are dealing with a reputable accountant.
 
The first is to only engage practitioners who are affiliated with a recognised PAO and confirm that they are in good standing with that body. Unregulated accountants present a real threat because they are not answerable to a regulator, are not bound to a code of ethics, and are not forced to adhere to recognised accounting standards. They are also legally restricted from providing certain services.
 
Official designations, like SAIPA’s Professional Accountant (SA), are registered under the National Qualifications Framework (NQF). So PAOs have the responsibility of informing the South African Qualifications Authority (SAQA) if a member’s title has been revoked. SAQA will then remove that person from its own database for that qualification. Anyone can check with SAQA that their accountant holds the title they say they do.
 
Newer processes, like SAIPA’s e-certificate system, employ online technologies to make validating an accountant’s good standing much easier. One need only click on the practitioner’s email badge or scan its accompanying QR code to be taken to a tamper-proof digital membership certificate online. In the case of a banished accountant, the certificate will clearly state that the holder is no longer linked with that body.
 
As a last resort, the name of a member found guilty of repeated misconduct, to the degree that they are expelled from the Institute, will be published. Further, their expulsion from one professional body will be binding across all PAOs. Concerned parties can therefore contact any of these associations to confirm that their accountant is not listed as a banned offender.
 
These steps afford the public a reasonable level of protection against accountants deemed not worthy to practice.
 
Public participation
With education and training, PAOs facilitate professional and ethical conduct. By their investigative and disciplinary processes, they confront individual cases of apparent malpractice. Through cooperative efforts, they deny membership to serious offenders, severely hampering their ability to practice. And they ensure that the means exist to identify and avoid expelled members.
 
However, these initiatives can be significantly amplified by the participation of the person in the street. Members of the public are often the first to come into contact with financial crimes, questionable practices and professional misconduct.
 
It is therefore imperative that organisations have reliable whistleblowing processes in place. This provides the security people need to report wrongdoing without the fear of retaliation. SAIPA offers an independent whistleblowing system as part of its investigative function. It can also receive tips indirectly through its network of industry partners.
 
Public assistance can have a massive impact on identifying perpetrators and ensuring they face justice.
 
Conclusion
While PAOs are not legally empowered to punish financial crimes, they are duty-bound to promote integrity in their ranks and minimise wrongdoing. They also have at their disposal considerable power over the ability of wayward members to continue practicing uninhibited.
 
At the same time, members of the public need to support their efforts. Ultimately, accountancy belongs to everyone and it is everyone’s responsibility to restore it to a position of trust within our global society.
 
By passing blame we will achieve nothing. By working together, we will make a measurable and lasting difference.
 
ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 

For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

Authored by:  Kantha Naicker, Chairman, SAIPA Board
 
On 8 March, we celebrated International Women’s Day, an annual and global holiday to commemorate the cultural, political, and socioeconomic achievements of women. We also recognise the value of Women’s History Month, a period originally observed just in the United States, over the month of March that has now slowly spread across the world, where the outstanding accomplishments of women throughout history are recognised.
 
As a progressive professional body, SAIPA is committed to promoting those values that honour women as equal and respected members of society, especially within the accountancy profession. The profession globally has seen a seismic jump in gender parity with the International Federation of Accountants (IFAC) Board celebrating its first ever female-majority Board and the Pan African Federation (PAFA) Board celebrating 40% of its Board being female.  
 
Although we still have much to do to balance the scales, we are proud of what we have already accomplished within SAIPA. As many female accountants as males now take and pass the Institute’s professional evaluation exam and we can be boastful of the 48% female full members. Our board comprises 48% women members. And we are one of the few professional bodies led by a female chairperson.
 
Being that chairperson, women often ask me what it takes to achieve such an important position. I answer that I honestly cannot say. I am an ordinary woman, business owner and mom who simply tries to bring my authentic self to everything I do. I am driven by my passion to make a difference and believe that women are not only deserving of the same rights afforded men but also those rights that their unique concerns, needs and circumstances demand.
 
I mention this because, if there is one thing the world lacks, it is women leaders. Yet, many of you reading this do not see yourself as leaders. You are held back by the perception that it takes something special. It does not. Anyone can do it. You can do it.
 
While it’s good to recognise those women, who achieved great things in history, there’s a danger that we see them as so remarkable, we could never dream of living up to their accomplishments. We don't need more women leaders we can look up to and aspire to be like. Instead, we need to be the leaders we want to follow.
 
So, my message to you today - and every day after - is to take your rightful place. Do not wait to be inspired by other women. Rather, take the lead and let other women be inspired by you. And a word of advice: ignore the naysayers and focus on people who really support you.
 
The more women who answer the call and take up leadership roles, the greater the impact we will have in shaping an inclusive and equitable reality. One where the influence of women can be seen in a more caring, understanding, and supportive society. When you create a difference in someone’s life, you not only impact their life, but you also impact everyone influenced by them throughout their lifetime. No act is ever too small. One by one this is how we can make the ocean rise.
 
ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

As the SARS collection process becomes more technologically advanced, tax practitioners must advise clients to avoid tax evasion and remain compliant.

This is according to Mahomed Kamdar, Tax Specialist at the South African Institute of Professional Accountants (SAIPA). “SARS will soon become so efficient at detecting tax evasion and recovering hidden revenues, it will no longer be worth it to lie on returns,” he says.
​
For example, to qualify as a small business corporation and obtain tax relief from SARS, a company’s shareholders must hold no shares in any other company, locally or internationally. If they do but apply for relief anyway without disclosing this fact, this information can be easily discovered electronically.

Similarly, a company is disqualified from seeking tax relief from SARS if a discretionary trust owns shares in it. Even if the taxpayer fails to reveal such shareholding on application, SARS’ IT systems can easily uncover it through high-speed cross-referencing.

In his budget speech, Finance Minister Mboweni allocated R3 billion to SARS to ensure its collection efforts succeed.

Smart collections
SARS may be utilising artificial intelligence (AI) to identify false submissions. But how does it work?

AI is a form of computer programming. In traditional programming, a computer receives data (inputs). These are processed by steps predefined by a programmer to produce some desired result (outputs).

In the case of AI, a data scientist gives the computer a vast collection of known inputs and outputs. Its AI software crunches this data to figure out how those inputs resulted in the given outputs. It effectively programmes itself, producing a reusable procedure or “model”. That model can be applied to new inputs to identify those that would produce the same outputs.

In the case of tax, an AI system can develop a model for recognising false submissions based on its analysis of ones belonging to known tax offenders. In the era of smart machines, the pattern of tax evasion becomes a fingerprint by which deceptive returns can be identified with high probability.

As SARS gains access to third-party systems, like property and vehicle registries, the chance of being caught out increases exponentially. “You don’t need AI to notice that if a taxpayer pleads poverty on their return but bought a luxury vehicle or house that year, something doesn’t add up,” notes Kamdar.

SARS is not only upgrading its internal processes. It is now capable of seamlessly sharing data with authorities around the world to discover foreign caches of undeclared income.

Overall, global tax collection is becoming smarter and more collaborative, leaving dishonest taxpayers with fewer options for hiding either hard-earned or ill-gotten gains.

This is highlighted by the fact that SARS recently advertised about ten vacancies, all of them for positions specialising in IT. In fact, there is speculation throughout global companies that many top IT professionals are now in the employ of tax authorities around the world.

In addition, the Income Tax Act now empowers SARS to act not just against intentional evasion but also negligence on the part of the taxpayer.

Tax practitioners
Tax practitioners have a duty to advise their clients on these trends and convince them to be completely transparent in their declarations and deductions. This means they too must become knowledgeable about what SARS is doing and educate themselves on how technology can disrupt the status quo.

SAIPA’s continuous professional development (CPD) programmes now focus heavily on emerging technologies, like AI and data analytics, for all its tax designations. This includes Professional Tax Specialist (SA), Professional Tax Practitioner (SA) and Professional Tax Technician (SA).

“The Institute’s goal is to prepare all its members for the challenges and opportunities of the Fourth Industrial Revolution as future-ready accountancy professionals,” says Kamdar.

SARS’ technology drive is a good example of how 4IR will affect trade, industry, society and governance.

ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

The South African Institute of Professional Accountants (SAIPA) has commended KPMG SA for its announcement that it will no longer offer non-audit-related services to its JSE listed clients.

This is according to Shahied Daniels, Chief Executive at SAIPA. “We applaud the firm for making this difficult decision in the best interest of the public and contributing to the process of restoring confidence in the accountancy profession,” he says.

Daniels also complimented KPMG Chairman Professor Wiseman Nkuhlu and CEO Ignatius Sehoole on their initiative. “Professor Nkuhlu promoted this concept of separating audit and non-audit functions, at SAIPA’s inaugural Accounting iNdaba in 2019, and his belief that the profession needs to be more public-centric, less client-centric,” he says.

Restoring confidence
Daniels believes that restoring confidence in the profession is a complex process that is still in its early stages. Accountancy – the body of duties accountants perform – has evolved into many specialised disciplines. Currently, auditing is the one under the greatest pressure to regain public trust. However, the accounting profession, a subset of accountancy, also needs to contribute to that goal.

The process should start with the preparers of financial statements and the CFO, extend to executive management, the audit and risk committees and internal auditors, and culminate with the external auditors. All these stakeholders must work as a collective and take full responsibility for the outcome of the audit opinion.

“So, it is not just one party working to restore confidence in the profession,” says Daniels. “It must be a unified progression with professional accountancy organisations, like SAIPA, playing a leading role.”

Separation of concerns
Daniels also believes that KPMG is right to separate its non-audit-related services from the auditing function provided to its listed clients because of developments in the industry.

Business advisory is rapidly evolving to become a unique and specialised competency within the accountancy stable. So much so that SAIPA has established a dedicated Centre of Business Advisory (CoBA) to equip the Professional Accountant (SA) to offer these advanced solutions to clients and employers.

“Business advisory services are becoming so common in organisations that it will soon be difficult for auditors to avoid giving assurance on their own firm’s work,” says Daniels. The Code of Ethics for Professional Accountants lists self-review as one of the main threats that accountants and auditors face.

Positive steps forward
Professional accountancy bodies are collaborating on several initiatives to ensure accountancy regains the unquestioned respect it once enjoyed.

One such initiative is the drive to encourage accounting firms, especially the larger ones, to adopt transparency reporting. While these disclosures are often internal, making them public would provide stakeholders with assurance of a firm’s integrity.

Another is that all professional bodies are taking a collective stand to ensure that accountants disqualified from one body can no longer seek membership with another, as was the case in the past.

Conclusion
Daniels encourages all firms and leaders in the accountancy profession to follow KPMG in its pursuit of restoring trust and confidence in the profession. “SAIPA will continue to drive this essential initiative and supports KPMG or any other company that commits to its achievement,” says Daniels.
​
ENDS
 
MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

Project Achiever, a specialised preparatory course run by the South African Institute of Professional Accountants (SAIPA), is helping a greater number of applicants pass the body’s Professional Evaluation (PE). More importantly, it’s also producing the calibre of accountants that practices, businesses and government entities are calling out for.

“Although we started Project Achiever to boost PE pass rates, our methodology intentionally elevates the way participants think about business problems,” says Sechaba Motaung, Professional Education Manager at the Institute. The long-lasting effects of this training benefits, not just the new accountant personally, but also their future clients or employers.

Past graduate Tebello Motsoene, agrees. “I gained more knowledge from Project Achiever than my degree,” she says. As a result, she is now a full SAIPA member and holds the Institute’s official designation of Professional Accountant (SA).

How it works
According to Delouise van der Westhuizen, Training and Assessment Manager at the Institute, attendees of the course are not rated on right or wrong answers but on the approach they take to solving business problems.

Project Achiever is presented in a virtual classroom every Saturday over a six-month period. The first hour-and-a-half session offers instruction on the course’s content. This is followed by a four-hour breakaway session in which participants are divided into groups and given a business scenario to solve. During this time, facilitators oversee student participation.

The remainder of the time is spent presenting their solutions, a duty everyone will eventually perform. Over the course of the day, they are exposed to problem-solving, teamwork and collaboration, creative thinking, communication and other competencies seldom taught in academia.

Facilitator Nqobani Mzizi, who graduated from the course in 2016, believes this form of experiential training is missing in schools and tertiary institutions. “It changed the way I think and, by extension, my life,” he says.

The results
Project Achiever graduates are typically the highest scoring candidates in SAIPA’s PE and usually dominate the top three performer spots. This serves to illustrate the efficacy of the course’s approach.

“Once our students have learned to integrate their academic and practical training, and think holistically about business problems, they are more than ready to take the PE with confidence,”  says van der Westhuizen.

The course is also not exclusive to SAIPA trainees. Anyone with a SAIPA approved degree and a verifiable record of six years of work experience as an accountant is welcome to attend Project Achiever. At the same time, they can register for the SAIPA PE and continue their career as a fully qualified Professional Accountant (SA), an NQF Level 8 qualification equivalent to an Honours degree.

“Many of our past students have qualified under the Recognition of Prior Learning track,” says Motaung.

Registration
Those who qualify to attend this year’s upcoming Project Achiever course should register before 14th February 2021. Interested parties can find the full details on SAIPA’s web site.

“I would also encourage employers to send their qualifying candidates on the course and ensure they become professionalised,” says van der Westhuizen. “This will help their accountants achieve their maximum potential much sooner.”

ENDS
 
MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

Building an ample workforce of South African accountancy professionals is pointless if they are not equipped with future-ready competencies.

“The accountancy community needs to start thinking about the Fourth Industrial Revolution and how technology is changing the profession,” says Professor Rashied Small, CoFE Executive at the South African Institute of Professional Accountants (SAIPA).

According to him, the main effect is that those in the profession will move from producing information to utilising it effectively in business decision-making.

“It, therefore, becomes essential that advanced initial and continuing professional development programmes be designed to prepare them for this new reality,” says Professor Small. This is the function of SAIPA’s Centre of Future Excellence (CoFE), which has developed its Competency Framework around this need.

Accounting technician
Typically, accounting technicians provide support services to professional accountants and the accountancy functions. Their duties include, among others, cash management, capturing financial records, recording payments and expenses, and compiling reports for accountants.

“As their work is taken over by AI and robotic process automation, or RPA, accounting technicians will assume the more critical functions of validating source data and investigating information anomalies,” says Professor Small.

Their main activities will be data mining and assuring the integrity of financial and business data flowing through the enterprise. To achieve their objectives, they will interact with various stakeholders, including operational managers, customers and suppliers, and technology providers, while reporting their findings to the professional accountant.

Professional accountant
Professional accountants currently maintain and manage an organisation’s financial function. They provide services around standards-driven financial reporting and accountancy practices and assure the accuracy of financial statements and the legal compliance of accountancy records.

Likewise, many of their traditional technical duties will be automated as 4IR principles immerse commerce and industry. Inevitably, they will transition to the role of strategic business advisor, creating valuable insights and foresight for organisations from financial and business data.
​
“Their focus will be on interpreting, disseminating and monetising information produced throughout accountancy and business processes to the benefit of their corporate leadership,” says Professor Small.

Embracing technology
Deploying more accountants with legacy training will not serve the needs of the growing number of technology-driven businesses. Rather, professional development must focus on the competencies that will help accountants transition to their new advisory role.

Accounting technicians must also be given the opportunity to acquire the skills that will enable their role as corporate data custodians.

Accountancy professionals can also no longer limit themselves exclusively to financial matters. Rather, they must add value throughout the business ecosystem, including its supply chain and value chain.
“Professional bodies, accountants and auditors who continue to focus on compliance will be nothing but compliance officers, which will add no real value to organisations seeking to leverage their data investment,” warns Professor Small.

Cybernetically enhanced accountants
Professor Small says that SAIPA has accepted the inevitable changes facing the accountancy profession. Instead of fighting to preserve the traditional accountancy model or competing against technology, the Institute intends to pioneer the evolution of the profession in the 4IR era.

“We must fuse accountancy with technology if we wish to remain relevant in this new world,” he concludes.
 
ENDS
 
MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

By Karl Smith – Education, Training and Membership Support: Senior Manager at SAIPA

As the global economy continues to falter under the strain of COVID-19, small businesses are especially hard hit. Confronted by a massive second wave of infection in South Africa, along with another lockdown, they are seeing their sales and cash flow falling to disturbingly low levels. Unfortunately, many have ceased operations while others, even if not defeated, have lost key customers and vendors across their supply chain.

The more astute - and determined - have recognised the value of turning to a Professional Accountant (SA) to keep their companies afloat. Over and above traditional financial duties, Professional Accountants (SA) also offer business advisory services. They are competent to restructure small enterprises, so they remain operational during periods of economic uncertainty.

Below are just some of the ways a Professional Accountant (SA) can help your small business.

Professional triage
In war, field doctors must make tough decisions about which of the wounded to expend scarce medical resources on. A Professional Accountant (SA) can guide you through similar necessary decisions about unprofitable products, vendors, employees, operations, resources, assets and even customers. Developing a mindset willing to let go of these once acceptable elements is crucial to your survival.

Planning
After discarding past assumptions about what your business is, you can decide what it needs to be to sustain itself. The modern Professional Accountant (SA) uses traditional financial reports and ratios, augmented with advanced analytical techniques, to help you determine how your business needs to change to remain operational.
Process

Having determined how your “survivor” business should look, you must develop a plan to get it to that state. Professional Accountants (SA) can assist with the process of transitioning to your new business model. Their input ranges from sensible cash flow projections and financial management practices to identifying viable sources of funds, realistic business development goals, and optimal strategic decisions.

Funding
The UIF has started auditing companies who applied for TERS funding to verify they actually used their allotment to pay workers. This proves that successfully applying for funds is not the end of the story. A Professional Accountant (SA) is a trusted authority who gives weight to your application by ensuring all required information is included and correct. They also liaise between you and third parties, whether your bank or one of the many available relief programmes. Lastly, they keep meticulous records to ensure that your life-saving allowance is not reversed because you cannot account for its use.

Capital management
The more capital a small business can conserve in the short term, the more likely its survival in the long run. Professional Accountants (SA) can ensure you derive the maximum value from scarce funds through prudent investments that protect against inflation and waste. This may even mean not investing at all based on their analysis of an initiative’s projected return.

Problem-solving
Small enterprise owners often solve problems internal to their organisation. Professional Accountants (SA), however, are exposed to a wide variety of industry types and business sizes. As such, they may have come across or helped develop solutions to problems you have yet to encounter, have been unable to resolve, or don’t even know you have. This makes them a valuable resource to companies bent on survival.

Resource management
After emergency cash hits your account, Professional Accountants (SA) are important thought partners in keeping you afloat. They can help you eliminate excessive costs and wasteful expenditure. They can identify contracts - like leases or loans - that are ripe for renegotiation. In fact, they can provide a myriad of options to help you run leaner than ever, improving on every aspect of your business.

Impartiality
Last but not least, the impartial support offered by a Professional Accountant (SA) is essential when your business seems to be spinning out of control. They will keep you informed and focused on moving forward instead of being immobilised by uncertainty. This will ensure you can navigate the rapidly changing landscape of government aid, get the resources you need to survive, and be ready when the time comes to rebuild.

Looking for a Professional Accountant (SA)?
Verify the membership of your accountant here.

ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
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Candidates of the South African Institute of Professional Accountants (SAIPA) completed their professional evaluation (PE) on Saturday, 5 December 2020.
 
According to Karl Smith, Senior Education, Training and Membership Manager at the Institute, SAIPA employed online technologies to ensure the evaluation took place as scheduled.
 
“We are proud that we were able to facilitate both our July and December examinations digitally without delay and in a very short time, despite COVID-19 constraints,” he says.
 
The Institute’s PE marks the end of a trainee member’s initial professional development (IPD) phase. Graduates become full SAIPA members, can practice independently, and may bear the designation of Professional Accountant (SA).
 
Digital initiative
SAIPA has employed both formative and summative online assessments for the past four years and implemented online competency-based PEs during 2020.
 
This is a much needed and welcome relief for SAIPA candidates, especially with the current pandemic, which poses a very real health concern and adds undue stress to an already pressure-filled event.
 
Facilitating an online PE further assists some candidates to avoid travelling long distances to examination centres.
 
“Even before the advent of COVID, we committed to digital transformation to enhance the Institute’s service delivery model, and to become as future-ready in the 4IR era as we expect our members to be,” says Smith.
 
Careful monitoring
Thomas Nyamvura, IT Manager at SAIPA, says the body’s greatest focus is on verifying the identity of remote candidates and confirming their responses are authentically self-generated.
 
“We continue to partner with an experienced service provider to ensure all tests are conducted under strict examination conditions through a system of technology-based invigilation,” he reports.
 
This includes visual identification of candidates and the environment where they take the examination. The computers they use are also monitored throughout the assessment period.
 
In addition, the system uses embedded artificial intelligence (AI) that identifies significant patterns of deviation from normal assessment behaviour. If detected, these are flagged for review and investigated by SAIPA.
 
Integrated competency
The actual content of SAIPA’s PE has also been redesigned to align with the competency-based approach prescribed by International Education Standard 6 (IES 6) from the International Accounting Education Standards Board (IESBA).
 
The PE therefore tests a candidate’s technical knowledge, applied skills and professional attributes against internationally accepted accounting proficiency standards.
 
“We are more interested in candidates demonstrating holistic competence across a spectrum of business and advisory concerns than just achieving a passing grade,” says Professor Rashied Small, CoFE Executive at the Institute’s Centre of Future Excellence.
 
Support
SAIPA also provides a number of interventions to prepare PE candidates for the evaluation and the experience of taking it online.
 
The foremost of these is SAIPA’s Project Achiever, a preparatory programme that augments candidates’ training with cognitive and soft skills shown to improve PE pass rates among attendees.
 
They are also exposed to intermediate and practice tests online to accustom them to the testing process in advance of the live examination.
 
“We encourage other bodies to adopt digital assessments so that the economy is never short of future-ready professional accountants,” concludes Smith.
 
ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants

Future-ready tax practitioners will need to learn data management to become effective advisors. This is according to Ettiene Retief, Chairman of the National Tax and SARS Committee at the South African Institute of Professional Accountants (SAIPA).
 
Retief was speaking at SAIPA’s 2020 Accounting iNdaba, held online on the 4th and 5th of November.
 
He said that, as the Fourth Industrial Revolution (4IR) sets in, tax compliance processes are becoming highly automated. So tax practitioners will increasingly be called on by their clients to provide advisory services instead.
 
“It is essential that they understand how to manage data and extract value from it,” he said.
 
Evolving tax
Tax administration used to be a complex, manual and time-consuming process. To ensure they were compliant, organisations and individuals employed the services of tax specialists.
 
Now, 4IR technologies, like artificial intelligence (AI), big data and mobile computing, are enabling SARS to automate its assessment and auditing services more and more. For example, the tax authority can now carry out auto assessments on certain taxpayers based on third-party data without them having to submit a return at all.
 
As the demand for their administrative services falls, tax practitioners should begin focusing on services like compliance and risk management, and advisory services.
 
Value of data
Over time the amount of data taxpayers are expected to retain and its retention period have increased significantly.
 
Tax advisors who understand how to work with data and use it to provide their clients with valuable insights will be more in demand.
 
“This means learning to improve data quality, processing efficiencies, and data analytics,” said Retief.
 
Steps
Retief said that tax practitioners should take the following steps to ensure they are prepared.
 
First, they must understand the limits of their client’s accounting systems and supporting documents. “They will add value by identifying bottlenecks in the compliance process, like weak VAT reporting or manually transcribing information from source documents,” he said.
 
Second, they should identify ways to enable automation within their practice and in processing their client’s data. “Use technology to reduce manual processing, minimize human error and speed up submissions to the client’s benefit,” said Retief.
 
Third, they must invest in upskilling themselves in technology and process design competencies. Said Retief: “Having this knowledge will allow them to design more efficient and informative tax management processes.”
 
Fourth, they must understand how tax and accounting departments can leverage data management to improve processes and outcomes. “This includes ensuring data is clean and formatted to enable reporting,” he said.
 
Fifth, they should know how to identify and mitigate risk in relation to data protection. “It is critical to understand topics like cybersecurity and data governance as these can save clients from legal pitfalls,” said Retief.
 
Conclusion
As tax administration becomes increasingly automated, tax practitioners will focus more on advisory services. Those who learn to leverage data to their client’s advantage will be in greater demand.
 
“They must become competent in data management and automation if they want to remain relevant,” concluded Retief.
 
ENDS
 
MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
 
For more information on SAIPA please visit:
Website: www.saipa.co.za
Twitter: @SAIPAcomms
LinkedIn: South African Institute of Professional Accountants Company
Facebook: South African Institute of Professional Accountants