 Many companies are adversely impacted by the coronavirus pandemic and have recently been physically wrecked by the unrest in some of the provinces. Tax legislation offers a legal leverage for companies to reduce their tax burden.
Affected companies who have experienced a reduction in sales volumes (a reduction of `gross income’ as defined in the Income Tax Act) to less than R20m in a tax-year, may commence the test to determine whether they qualify for the benefits applicable to a Small Business Corporation (SBC). These benefits are quite generous. Qualifying businesses enjoy a much faster depreciation allowance and low tax rates. The SBC may deduct 100% of the cost of any plant or machinery used in manufacturing, or if not used in manufacturing, then there is a three-year deduction formula. The tax rates range between 0% up to R87,300 of taxable income, 7% of taxable income above R87,300, R19,439 + 21% above R365,000 and R58,289 + 28% above R550,000. The South African Institute of Professional Accountants (SAIPA) recently held a webinar to give guidance on how small businesses can ensure that they reap the benefits offered under the SBC tax regime. It is very critical that all the requirements listed are met. Mahomed Kamdar, Tax Specialist at the South African Institute of Professional Accountants (SAIPA), says the tax relief for an SBC is designed to encourage the proliferation of small businesses that creates employment. Qualifying criteria for SBC Only companies, and not individuals will qualify for the SBC relief. In order to qualify all the shareholders must be natural persons, the gross income of the company during the year of assessment may not exceed R20 million, and all investment income or income from a personal service may not exceed 20% of all the revenue receipts, accruals, and capital gains. “It can be that the entity will qualify in year one, but not in year two and again in year three. Hence, this test must be conducted annually, and importantly, at the end of each tax year,” advises Kamdar. It is important to note that a company must not be a Personal Service Provider and all investment income or income from a personal service may not exceed 20% of all the revenue receipts, accruals, and capital gains. Underlying philosophy It is critical to understand the underlying philosophy of SBC – it is designed is to provide tax relief which improves the liquidity and cash flow of business. The South African Revenue Service (SARS) has “taken offence” to the creation of PSPs during the 80’s and 90’s. What essentially happened was that employees resigned from their employment, establish a company or a trust, and offered their services back to the employer. This was done mainly to obtain a tax saving. However, SARS amended the legislation so that if someone qualifies as a PSP the company receiving services from the person will have to deduct Pay-As-You-Earn at a rate of 28% and pay it to SARS. On top of that, the deduction of business expenses is limited. Expanded definition Kamdar says over the years the definition of a PSP has been expanded. If the person rendering the service to the client would have been regarded as an employee if the service was rendered directly to the client and not through the company or the trust, he will be deemed a PSP. SARS will also consider the person to be a PSP if the services are performed mainly at the client’s premises, and the person is working under the supervision of the client. If more than 80% of the income of the company during the year of assessment comes from one client, the person qualifies as a PSP. Escape the net But, says Kamdar, there are ways to escape the PSP net and the `personal service’ definition for SBCs. The company can employ three or more people on a full-time basis, for the complete year of assessment, and they must be directly involved in the business activities. The employees may not be connected to the company or the owner. When the company ticks all the boxes, it will be able to qualify for the generous SBC benefits and further accelerate its recovery from the crisis facing the country because of improved cash position. ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@atthatpoint.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
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 Business owners and operators affected by the looting that shocked South Africa last week will receive free business advice from Friday 23 July at 10:00. The South African Institute of Professional Accountants (SAIPA) will host a series of webinars to help business leaders understand how to best respond, recover, re-evaluate and reinvent their businesses, or exit the business in the correct way.
“Anyone can attend the SAIPA Support series of webinars for free,” says Shahied Daniels, Chief Executive of SAIPA. “The sessions will be livestreamed via Facebook, ensuring that as many people as possible can watch on their mobile phones.” Sessions will feature a panel of experts that will offer attendees practical advice on how to recover from the losses they have suffered due to looting or the effects of the Covid-19 pandemic. “Professional Accountants don’t just take care of the financial aspects of the business, they act as business advisors to their clients every day. SAIPA therefore has the responsibility to support its members in offering sound advice to businesses unsure of the way forward”, explains Daniels. “SAIPA applauds every South African who contributed to the immediate clean-up and emergency provisions. The road to business recovery however extends beyond a physical clean-up, and that’s where SAIPA is best suited to support business leaders”. The SAIPA Support series will consist of four webinars livestreamed every week on a Friday, starting 23 July 2021. Individuals interested in the first webinar can register via https://saipa.zoom.us/meeting/register/tJEpcO-tpjsuH9c8IzKtEC2SLpRxgHwxsps7 The livestream will be available via https://www.facebook.com/SAInstituteProfessionalAccountants 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  When schools reopen Grade 12 learners will face the daunting task of preparing for their final high school examinations. SAIPA, one of South Africa’s top professional accounting bodies has launched a project to support the learners in their preparation.
“SAIPA is committed to operating in a way that has a positive impact on society. Driven by a belief that education has the power to create greater prosperity in South Africa, we’ve created a free, structured online support programme to help Grade 12 learners prepare for their accounting, mathematics and mathematical literacy exams,” says Karl Smith, Senior Manager: Education, Training and Member Support of SAIPA, the South African Institute of Professional Accountants. “The sessions, which will be hosted on Saturdays via Zoom, will be facilitated by experienced educators, from Gauteng and the rest of the country. The sessions will be making use of past question papers and will provide learners with prepared answers and responses to it.” “With improved accounting, mathematics and mathematical literacy skills, participating learners will be able to make choices, solve problems and analyse information with confidence. They are also more employable when they’re ready to enter the workplace.” Tutorial presentations on examination topics will take place from 31 July to 16 October 2021, application sessions from 7 August to 23 October 2021, and revision of paper 1 and paper 2 in the three subjects from 23 October to 30 October 2021. Registration to participate in this project closes on Friday 23 July 2021. Grade 12 learners can register to attend as individuals. It is strongly recommended that learners have access to a reliable internet connection, so they may extract the most value from the sessions. “For areas or learners without access to reliable internet connectivity, teachers can register and arrange a group attendance session where internet connectivity is available. In these cases, we recommend that the teacher attends these group sessions to ensure adherence to Covid-19 protocols,” says Smith. “Should a central venue with connectivity not be available, recordings of the sessions will be distributed to schools and district subject advisors in a format that suits the school environment.” To prepare for the tutorials, registered learners will have access to the 2018-2020 past papers and preparatory notes through the MySAIPA digital platform. IMPORTANT LINKS Registration platform: https://www.saipa.co.za/free-accounting-mathematics-support-sessions-for-grade-12/ Tutorial schedule: https://www.saipa.co.za/wp-content/uploads/2021/06/schools-programme-tutorial-schedule-revised-23-june.pdf Support contacts: Marcia Masipa on MMasipa@saipa.co.za or Mercy Malungani on MMalungani@saipa.co.za ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@atthatpoint.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  A new publication, titled The Professional Accountant’s Role in Data, proposes that accountants will become major players in the quest to create strategic value from corporate data.
“Through their expertise and experience they are well positioned to bring maximum order, certainty, compliance and utility to this process,” says Professor Rashied Small, Executive of the Centre of Future Excellence (CoFE) at the South African Institute of Professional Accountants (SAIPA). The paper was released by the International Federation of Accountants (IFAC), of which SAIPA is a voting member. A data explosion The world is being flooded with data that organisations want to use to their advantage. At the same time, increasing global regulation, aimed at protecting the public, is redefining its legitimate use. Moreover, the integrity, quality and reliability of data used in decision-making have been limited for too long, resulting in poor data and, as a result, ineffective decisions. “Data used to be a simple collection of ones and zeros in the digital era, but today reflects both business and public concerns that accountants are qualified and well positioned to manage,” says Professor Small. The data management value chain According to the paper, data progresses across several linked phases as it passes through and between organisations. It calls these the data management value chain, a term that highlights the value of data as the currency of the digitalised and technology environment. The phases and the management roles involved comprise: data gathering by data engineers, data sharing by data controllers, data insights by data scientists, and communication by strategic advisors, each of which future-ready professional accountants will become major role players. The document concludes that accountants can extend their existing financial data management expertise to adopt any and all of these roles. Data assurance A core function of accountancy is to provide professional assurance on the integrity of financial information. In the same way, the policies, sources, structures, transportation, traceability, analytical methodologies and even strategic application of data, need to be exposed to the same exacting professional scepticism accountants insist on. “This will guarantee that decision-making data and its associated data management practices have integrity, are fit for purpose, and align with strategic outcomes,” says Professor Small. Strategic business advisor Most important, according to Professor Small, is the accountant’s ability to clearly communicate the meaning and limitations of the data and offer guidance on applications for which it is valid and best suited. As data becomes a critical component in business transactions, sometimes even being sold on to third parties, its integrity, ethical use and compliance with privacy and protection regulations must be clearly understood by all stakeholders. Future excellence As mentioned in the paper, accountants mainly deal with structured financial data and will need to be trained up, on the full data management lifecycle, which includes unstructured datasets. In 2020, SAIPA launched its Centre of Future Excellent (CoFE) for this very purpose. Headed by Professor Small, the Centre monitors trends emerging from global digital transformation and the Fourth Industrial Revolution. He says it also focuses on the soft skills accountants will need for excellence in communication and collaboration. “In the future, when companies need guidance on data matters, they won’t turn to the tech industry first but rather their future-ready professional accountant,” says Professor Small. 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 Faith Ngwenya, Technical and Standards Executive at the South African Institute of Professional Accountants
June 27 was International Micro, Small and Medium-sized Enterprises (MSME) Day and this year the theme was “MSMEs: Key to an inclusive and sustainable recovery”. There’s no doubt that micro, small and medium enterprises will play a huge role in rebooting both the local and global economies. Yet, with no end to COVID-19 in sight, many of these smaller businesses are struggling just to keep going. Now is not the time to bet everything on the latest trending advice from world-renowned management gurus. Instead, it’s a golden opportunity to get the basics right because this is where most businesses fail. When the economy is good, we can get away with neglecting the basics to a degree. But when times are tough, correcting poor elementary business practices is the most positive step we can take. None of these are more important than having a strong financial management function. They might sound boring but making the following points a daily priority can literally save your company from disaster. Master cash flow Being able to match the timing of cash payments with that of cash receipts is both a science and an art that every business manager must master. It becomes even more essential when revenues dip, along with the discipline to slow down spending to keep the two in sync. Cash may no longer be king but it is still the fuel that keeps MSMEs in operation. Cut costs ruthlessly Hidden costs and unchecked spending can eat into a company’s profits and cash flows. They’re also sources of much needed finance just waiting to be discovered. So it’s not only crucial to weed them out and discard them mercilessly but also to develop and implement cost saving strategies that ensure not a single cent goes to waste. Budget for reality Budgeting might seem like a chore but not budgeting means you’re flying blind, with no idea if you even have enough fuel to reach your destination. A good budget tells you if you have enough to make it to the end of the month and allows you to reallocate scarce funds ahead of time to where they’ll do the most good. Budgets are not cast in stone but in sand and can be adjusted as circumstances change. Collect sooner Do you follow the industry average collection rule of 45 days? That generalisation may not be appropriate for your type and size of business in your industry. Find out the appropriate debtors days metric for your company and start using it immediately. You may be allowing delayed collections that could ruin you in a down economy. Learn to market on a shoestring The common advice is that when times are tough, you need to market more. That doesn’t mean you need to spend more on promotion, though. By being creative and adopting digital marketing practices, you can reach more prospects through social media and organic search results. Sharing useful information that’s relevant to your market can help you build a reputation for being value and service oriented. Stock for demand Good stock management is imperative right now and you need to align your stock holding with demand. It’s important to avoid overstocking and incurring storage costs. At the same time, you can’t afford to understock and lose business because of out-of-stock situations. So you must monitor customer buying patterns more closely and plan accordingly. Avoid the tax trap With SARS eager to collect every cent it can find, small businesses need to carefully plan and manage their tax obligations. It’s easy to forget tax but gross non-compliance and eventually having to catch up on unpaid tax and penalties can throttle cash flow to the point a business must close its doors. Even then, SARS could continue to pursue the owners, regardless of supposed limited liability, and owner-managers are particularly vulnerable. The Companies Act stipulates that a director becomes personally liable if it can be proved they were negligent in discharging their responsibilities as directors of a company. Using PAYE or output VAT as a cash flow lever could be seen as negligence and as a result, you may lose the limited liability provided by the company or close corporation as a form of business entity. Get a good accountant One of the top causes of business failure is poor financial management, so it’s not optional. But many MSMEs are too busy with daily operations and strategic management to master it. An easy solution is to engage the services of a professional accountant. The upside to this approach is that modern accountancy practitioners don’t just implement sound financial management practices and strict cost controls. They’re also exceptional strategic business advisors who are already trusted by millions of MSMEs to provide reliable guidance on managing their entire organisation. In addition, accountants are a great single source for guidance and assistance on obtaining financing, TERS applications, business grants, tax compliance, and much more. That’s three birds with one stone. Be a kind community According to SAIPA member and small accountancy practice owner and Professional Accountant (SA), Amanda Roothman, now is the time for community kindness. “I’ve noticed overwhelming support between small businesses during this period, with many sharing their knowledge and expertise with each other,” she says. It’s good to be mindful that, while the basics are essential, so is coming together in the spirit of ubuntu. The fellow businessperson we help today may be the one who helps us when we are in distress tomorrow. Celebrating MSMEs International MSME Day was created to remind us of the important role micro, small and medium enterprises play in inclusive and sustainable economic recovery. SAIPA, our staff and all our members salute your spirit of entrepreneurship and the pure grit that keeps you going. To help you get the most from your accountancy function, we recently released Episode 1 of our SAIPAconnect video series, titled Which Type of Accountant is Best for My Business? Watch it here: https://www.saipa.co.za/which-type-of-accountant-is-best-for-my-business/ 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  Author: Karl Smith, Senior Manager: Education, Training and Member Support at the South African Institute of Professional Accountants (SAIPA)
The latest unemployment figures paint a rather concerning picture. The official unemployment rate for the first quarter increased slightly to 32.6%. However, it is now the highest since the first Quarterly Labour Force Survey was done in 2008. Even more concerning is the unemployment rate according to the expanded definition of unemployment, which rose to 43.2% in the first quarter. The accounting and finance profession has not been left unscathed by this rise in unemployment. All is not lost, and people who find themselves unemployed or looking for new opportunities can future-proof their career by increasing their own marketability. The value proposition Technology is reshaping the accounting and finance world. Key trends in technology means that tasks traditionally performed by accountants are increasingly automated. Professional accountants need different skills to remain relevant and in demand. The Covid-19 pandemic caused a far more rapid increase in automation than we expected. This has fundamentally changed the workplace. SAIPA members need to invest in themselves to meet the new job requirements brought about by technological disruption. This includes critical skills such as analytical thinking and innovation, active learning, creativity and originality. Great accountants have the ability to make accurate assessments and sound judgements. Common sense remains a must-have skill. Accounting requires a meticulous and detail-oriented eye. The accountant of the future can think critically, solve complex problems and have the ability to use data for strategic advice and decision-making. Data impacts nearly every aspect of auditing, tax, accounting and advisory services. Therefor the ability to analyse data for better strategic business decisions is vital. As professionals, we have access to a goldmine of data. The ability to use that to the benefit of our clients is priceless. Professional accountants are creators, enablers, preservers, and reporters of sustainable value for their organisations. As creators of value, we need to take the lead in the design and implementation of strategies, policies, plans, structures, and governance measures. As enablers of value, we need to inform and guide managerial and operational decision-making and strategy implementation through planning, monitoring, and improvement of processes. As preservers of value, we need to guard against strategic, operational, and financial risks, and ensure regulatory compliance. As reporters of value, we need to communicate transparently. Career branding It is time to be bold. Advancing your career will require you to step up, take the lead and accept ownership of projects that are outside your regular tasks. You will not only gain new experiences, but it will show that you are able and willing to add value. You can increase your visibility in the organisation by networking across different departments. This will offer you the opportunity to showcase your skills to a different group of people. It is also time to be brave. Share your ideas and be ready to implement them when they find favour with the boss. Understand and analyse the workflows and processes of the company, then suggest innovative solutions to improve or streamline them. Showcase yourself In a sea of skilled people, you need to stand out. Valuable steps to get you on top include:
Never give up It is quite normal to feel frustrated at your lack of job opportunities and may even consider transitioning to a different field. It will be desirable if you transition into a field in which you have some skills and experience. More importantly, do not allow short term circumstances to force you into making decisions that may impact your career. Persist and invest in yourself. It will pay off. Finance and Accounting are critical to ensure the success of small and large businesses environment. Remain relevant and stay on top of new developments. Demonstrate your skills and expertise, even if it means giving free advice or hosting a free talk or webinar. Write that thought-provoking article and present it to accounting and finance journals. Do not give up. 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 launched its National Accounting and Maths Olympiad (NAMO), a complete reboot of its popular annual National Accounting Olympiad.
Unlike previous years, the 2021 competition will be held in a case study format where learners submit their business solutions to industry experts. So says Professor Rashied Small, Executive at the Institute’s Centre of Future Excellence (CoFE) and concept creator of the new Olympiad. “We’re breaking free of the exam hall to build an engaging and immersive experience that will challenge entrants’ ingenuity in real-world business scenarios rather than their textbook maths and accountancy skills alone,” he says. Why the new format? The typical technical duties of professional accountants will be increasingly automated using AI, software robots, and other technologies. This will free them from mundane financial administration, allowing them to add greater value to their organisations as strategic business advisors. Future-ready professional accountants will be expected by their organisations and clients to turn AI predictions and corporate data into profitable business initiatives. “This will require them to develop advanced business, technology, and communication skills that, through the new Olympiad, SAIPA is promoting into schools right now,” says Professor Small. How it works The Olympiad, open to grade 11 and grade 12 accountancy and maths learners, has abandoned the classic approach of having pupils write tests at their school and selecting the winners based on top marks alone. The entire project is open-ended, leaving entrants to formulate their own approach to researching information, solving problems and reaching their objectives. Grade 11 learners will write an online assessment followed by a final exam with a twist, where they will be given the answers. They will be judged on the use of their syllabi knowledge, and their analytical and critical skills to determine the correct answer. Grade 12 learners will receive a case study that should be used to develop business ideas and solutions. The case study approach will incorporate the principles of accountancy and maths in a business context. There will be two consecutive submissions in total, each building on from the last. The first submission will be due at the end of July and the second at the end of September. Now there are teams An intriguing aspect of the 2021 Olympiad format is the ability of Grade 12 participants to tackle the project individually or to form a team of up to five members. Working in teams will expose entrants to multidisciplinary teamwork and collaborative engagement that is now the new normal in business. “The introduction of teams promotes a dynamic, collaborative dimension not found in previous competitions,” says Professor Small. Regardless of which approach they choose; winners will be selected based on the excellence of their individual performance. In the “hot seat” After reviewing both submissions, learners or teams will be shortlisted and these contestants’ final challenge will be to present their idea before a panel of judges. The session will focus on their ability to research, conceptualise and communicate their assumptions based on the case study challenge. This will include how they applied both their accountancy and maths skills when developing the proposal, financial statements, a basic business plan and other reports. “A contestant’s chance of winning hinges on the judges’ assessment of their ability to communicate their financial, mathematical, and technical reasoning behind the business’s development,” says Professor Small. Team members may also be asked to evaluate each other’s contributions and performance while lone competitors will evaluate themselves. Selected members of the accountancy, business, and academic communities will be invited to preside as Olympiad judges. Registration and information
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  Some business managers still don’t know that SARS’ tax year starts on 1 March of the current year and ends on 28 or 29 February the following year. So they might be surprised at how busy May is in the tax calendar.
“To survive the pandemic, companies must remain laser-focused on their financial health, and their strategy must promote a strong tax position,” says Kantha Naicker, Chairman of the Board at the South African Institute of Professional Accountants (SAIPA). It’s no longer sufficient to blindly thrust this responsibility on their tax practitioner and forget about it. “Your accountant is your strategic business advisor and this is an opportune time to review your financial position with them,” agrees Ian Ferreira-Massyn, Board member and Chairperson: SAIPA (Southern Region). What’s in store for May May kicks off with the usual Pay-As-You-Earn (PAYE) submissions and payments due by the 7th of every month. This is followed by Value-Added Tax (VAT) manual submissions and payments on the 25th. Then, on the 28th, it’s time to pay Excise Duty. Corporate Income Tax (CIT) Provisional Tax payments and VAT electronic submissions and payments are both due by the 31st. On top of that, the final date for your annual Employer Reconciliation Declaration (EMP501) also falls on the 31st. Each of these, as well as other tax events, can have a material impact on your company’s financial health. “Don’t just make submissions; poor tax awareness can endanger your cash flow and needs to be reviewed with your accountant as a managed component of your larger business recovery strategy,” says Naicker. Accountants as business advisors Consultants tend to specialise in a single domain of expertise, offering both direction and services to achieve an isolated outcome. For example, moving your computer system to the Cloud. Conversely, advisors operate at a higher level over a longer term, guiding businesses to better performance, greater growth, and bigger market share. While accountants can and do offer consulting on financial needs, their role is quickly evolving to that of strategic business advisor. Internally, financial data is a core feature of all segments of the organisation and gives financial officers deeper insight into its operational strengths and weaknesses. Outside companies, accountants in practice are exposed to a broad range of industries, and the best practices of their top performing clients. They can help their less successful clients implement similar approaches to optimise their own performance. “In both cases, accountants have a better understanding of businesses and how to improve them than most other management functions,” says Ferreira-Massyn. Achieving advisory excellence Realising that excellence in advisory services is rapidly becoming as important as in accountancy, SAIPA launched its Centre of Business Advisory (CoBA). The Centre acts as a think tank, identifying emerging demands around business advisory and developing standards and continuing professional development (CPD) initiatives to satisfy them. Because businesses sometimes approach other professions for advice, the Centre is open to SAIPA members and non-members who qualify to join. “Business advisory is not always a one-person show and SAIPA wants to ensure that companies receive congruent guidance that aligns with their strategy, regardless of the source,” says Naicker. So why not use this busy tax month as a springboard for developing a better business recovery strategy with the help of your accountant? 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: Karl Smith is SAIPA’s Senior Manager: Education, Training and Member Support
Below are 8 great reasons to start a career in finance and accountancy. But first, let’s take a quick look at what these exciting fields are about. Finance – building and preserving wealth Every day, across the planet, trillions of dollars change hands and immense wealth is created – or lost. Finance professionals help people, organisations and even governments manage their money and investments, wisely and strategically. Ultimately, they build wealth for their clients by gaining more value from their assets and reducing their risk of loss. Can you imagine working in such a vibrant, complex industry? Then a career in finance might be right for you. Accountancy – making businesses sustainable Without good information, organisations make bad decisions. Accountants don’t just manage every cent earned or spent, or ensure financial transactions comply with laws and accountancy standards. They also compile this data into financial statements and management reports. And they provide their analysis of what it means so corporate and government managers make better strategic decisions. If you love numbers, accountancy is a fantastic occupation to choose. Reason one: Work in a dynamic, tech-driven industry every day Finance and accountancy make up one of the most forward-thinking industries in the world, constantly advancing and rapidly expanding. The growing dependence of global financial markets on advanced technologies, like artificial intelligence and cloud computing, will keep you at the cutting edge of business. And, thanks to emerging markets, new legislation, digital financial models and other economic trends, it’s becoming more exciting every day to work in this field. Reason 2: Start your career with a sparkling variety of options A finance and accountancy qualification is the gateway to a variety of engaging careers. Finance professionals can choose to be investment bankers, corporate finance managers, corporate acquisition specialists, asset managers, equity analysts, and many other roles. Accountants are spoiled for choice, and they can work as consultants, financial accountants, tax practitioners, management accountants, information systems experts, internal and external auditors, forensic accountants, financial planners, and more. There are so many places to start your journey towards the position you see yourself holding in the future. Reason 3: Look forward to international work opportunities Finance and accountancy can be your international passport because it’s relatively easy for these professionals to get a job in other English-speaking countries. And if you brush up on a new language, the world is your oyster, because more and more companies are going global. Foreign branches need professionals who understand how their parent business operates but can also adapt quickly to the local market. Some finance and accountancy qualifications easily lend themselves to working abroad. For example, the Professional Accountant (SA) designation is internationally recognised through the South African Institute of Professional Accountants’ (SAIPA’s) membership with the International Federation of Accountants (IFAC). So, if you dream of faraway lands, a career in finance and accountancy can transport you there. Reason 4: Work in any sector and organisation you like While many professions are restricted to specific industries, accountants work everywhere and finance professionals work with everyone. Whether it’s forestry, pharmaceuticals or space exploration, everyone needs accountants and protection for their finances. Finance and accountancy professionals also do equally well in local, provincial and national governments; corporate and commercial businesses; charities and not-for-profit organisations; professional associations; and educational institutions. They might be employed full-time, work for an accountancy firm, or run a private practice so they can serve many different clients in different industries. Which other profession gives you such freedom of choice? Reason 5: Enjoy wealth and rewards more valuable than money It’s no secret that finance and accountancy professionals earn very good salaries, but they also enjoy rewards that are not financial. There’s the certainty of knowing that, as an always in-demand expert, you’ll quickly achieve personal financial stability. You can start saving and investing sooner while enjoying the finer things in life. And you can provide your family with a greater level of happiness and security than many other professions. At the same time, a career in finance and accountancy is a personal achievement you will always be proud of. It will give you confidence to establish yourself as a trusted professional advisor, and achieve your life goals without hesitation. It’s a career that offers more wealth than can be seen in a bank account. Reason 6: Possess employable skills that will never go out of demand Did you know that, in South Africa, many finance and accountancy roles appear on the national Critical Skills List? The need for these talents is massive at all levels of business. So a smart candidate shouldn’t have too much trouble finding the job they desire. Think about it. Not all organisations use engineers, doctors, architects or many other professions directly. But no organisation can operate without accountants. They are truly critical to business. As for finance, it’s a sprawling global industry that rose from the lasting need to preserve the value of money. The demand for its services will likely never diminish. So, if you want a career that will always be in demand, look no further than finance and accountancy. Reason 7: Rest assured that the sky is the limit for your career Did you know that some of the world’s top entrepreneurs, CEOs and government ministers started off in finance and accountancy? There’s really no end to what you can achieve in this field and you can set your sights as high as you want. When it comes to career advancement, other industries demand seniority and experience. But in finance and accountancy, if you can show you are quick thinking, pay attention to details and deliver consistent results, age is no barrier to one day winning a top corporate position. Of course, if you prefer to be your own boss, finance and accountancy is the best platform to build your personal empire in the exciting world of entrepreneurship. Reason 8: Be surprised by how social the profession is It’s true! Accountants are no longer chained to their adding machines. Instead, as strategic business advisors, they deal with people all day, at various levels of business and society. In fact, as basic accountancy functions become more automated, the profession is focusing on offering assurance on information, and informing, educating, persuading and helping others to understand and use it to their greatest strategic advantage. Because you’ll belong to a professional body, you’ll also get the chance to network with a large community of like-minded people who understand what you do. Expect to make important connections and build many long lasting relationships. Here’s how to get into the industry Do you like these 8 great reasons for getting into finance and accountancy? Then here’s the path to becoming a Professional Accountant (SA) with the South African Institute of Professional Accountants (SAIPA). One: Pass matric with good marks in mathematics and accountancy. Two: Pursue a SAIPA-approved Bcom degree at university. Three: Complete three years of practical training at a SAIPA Accredited Training Centre (ATC). Four: Take SAIPA’s Professional Evaluation to become a member of the Institute. Five: After passing, you’ll be awarded the Professional Accountant (SA) designation. Now it’s your move The world needs finance and accountancy professionals now more than ever. So there’s no better time to become one. It’s an exciting, open-world experience that lets you build your career around your desired lifestyle, with plenty of financial and personal rewards along the way. I hope this article has helped you find your new life mission. 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  Accountancy a critical skill for South Africa
The Department of Home Affairs recently ended public commentary on the draft national Critical Skills List, which includes several common accountancy roles. “Due to a shortage of accountants, organisations are forced to source and recruit foreign nationals to fill the gap,” says Faith Ngwenya, Technical and Standards Executive at the South African Institute of Professional Accountants (SAIPA). Professional bodies play a key role in ensuring only foreign accountants who demonstrate professional competence and ethical integrity are permitted to practice locally under a Critical Skills Work Visa. Critical accountancy skills Accountancy roles included in the draft Critical Skills List are general accountant, management accountant, tax professional, accountant in practice, financial accountant, forensic accountant, accounting officer, external auditor and internal auditor. Marisa Jacobs, Managing Director at Xpatweb agrees with the nominated roles. The company runs an annual Critical Skills Survey and was the only private sector organisation invited to present its findings to the various Departments compiling the draft Critical Skills List. “8 percent of our respondents report difficulty in recruiting skills in the accountancy and finance fields,” she says. Asked why there are not enough local accountants, Jacobs says the problem is relative: “There are definitely many qualified accountants in the country but demand outpaces supply.” If this is true, why do many accountancy graduates struggle to find work? “Companies are unable to risk the integrity of their accountancy function on inexperienced candidates,” says Jacobs. The role of professional bodies For foreign professionals to apply for a Critical Skills Visa, the Immigration Act requires that they meet certain requirements. First, they must obtain a confirmation, in writing, from a professional body, council or board recognised by SAQA, or any relevant government Department confirming the skills or qualifications of the applicant and appropriate post qualification experience. Second, if required by law, they need proof of application for a certificate of registration with a professional body, council or board recognised by SAQA in terms of the National Qualifications Framework Act. Third, they must possess proof of evaluation of their foreign qualification by SAQA, which must be translated by a sworn translator into one of the official languages of the Republic. Ngwenya says that SAIPA strives to ensure these accountants can move as quickly as possible into their new posts for the sake of economic growth. However, she insists that its standards for professional excellence and ethical conduct must be maintained throughout. The Institute also has agreements with several international professional accountancy bodies to facilitate their members being able to work in South Africa under SAIPA’s oversight. However, foreign national accountants should never be recruited for the sole purpose of ‘catching up on work’. “There must be well-defined programmes to transfer skills and experience to South African professionals in a way that can be measured and verified,” says Ngwenya. Organisations also need to establish a strong succession process to identify suitable candidates who will assume key roles when the foreign accountants vacate their positions to return home. Accountancy career path The fact that accountancy roles appear on the draft Critical Skills List confirms the profession’s importance in economic development. It also promises enduring demand in the job market and stable income for those who pursue it as their occupation. “We encourage anyone who enjoys working with numbers to consider a career in accountancy as they will never regret their decision,” says Ngwenya. High school students and those wishing to study towards a business degree can visit SAIPA’s website to gain a better understanding of the Institute’s career development path and the membership opportunities open to them. Lastly, corporate accountancy departments and private accountancy practices that have enjoyed all the profession has to offer should take on trainees. “This will help our South African graduates gain vital practical experience to practice responsibly and ensure business has enough competent accountants in the future,” says Ngwenya. Organisations can apply to become a SAIPA Accredited Training Centre (ATC) by visiting www.saipa.co.za/about-atcs. 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 |
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