At That Point
  • home
  • services
  • about us
  • our work
  • our thoughts

SONA 2019: Achievable NDP demands strict financial control over budget

26/6/2019

0 Comments

 
Picture
Authored by: Faith Ngwenya, Technical and Standards Executive at SAIPA

Last Thursday, President Cyril Ramaphosa delivered his 2019 State of the Nation Address (SONA).

​In it, he outlined a set of lofty ambitions at a time when the economy continues to wane, the national budget is stretched, and both state-owned enterprises and our infrastructure are failing us.

After the event, the reaction from other political parties could be summed up in one word: disappointment. They felt the President had set a high bar but had done little to reveal how we should clear it.

Whether we can or not will depend largely on how efficiently and effectively the nation’s money is put to good use. At a national, provincial, municipal, business and even personal level, the need for strong financial management, backed by competent and ethical professional accounting, has never been greater.

Funding a new dawn
President Ramaphosa eloquently highlighted the many problems that required corrective action, from resuscitating Eskom to energising youth employment opportunities, from boosting continental trade to reducing violent crimes.

Yet, the underlying conundrum is as it has always been - how will we fund these aspirations?

In South Africa, money is a scarce national resource compared to the sheer volume of critical projects crying out for backing.

​There are only limited means to make funding available.These include being more productive (earning more), encouraging investment (attracting more), spending less (saving more), and prioritising the financing of projects which promise the highest growth (leveraging more).

Each approach, or even a hybrid of them all, demands the conservation of limited funds through careful financial management.

The importance of accounting
We at SAIPA, along with other professional accounting organisations (PAOs) around the world, have done much to prepare Professional Accountants for a future in which the greater part of their work will focus on business advisory services.

This is in response to the continuing encroachment of automation technologies and artificial intelligence on many of our more technical duties and reporting capabilities.

Yet, with SONA 2019, we see a continuing need for the so-called “bean counters” of the past, who meticulously account for every last cent to ensure minimum waste and maximum utility of scarce funds.

We’ve become a society that scoffs at those who are so pedantic about mere fractions of a cent, yet the end goal of accounting is to make money as valuable as possible and accomplish more with it.

The simple philosophy of “a penny saved is a penny earned” is one that has helped return many a struggling economy to sustainability and even growth.

Do we need more accountants?
In South Africa, the number of Professional Accountants who are members of its various professional bodies is probably above 50,000.

According to a 2017 paper from Oxford Economics, there were some 260,000 registered accountants in the UK and Northern Ireland that year. That’s quite a difference. Although that nation is right next door to the European Union, the EU does have its own accountants. South Africa is similarly positioned to its African neighbours.

Can the difference be attributed to there being more businesses in the UK? A December 2018 House of Commons Library Briefing Paper on Business Statistics indicates there were 5.68 million British businesses around that time, while the reported number in South Africa was very nearly the same.

The obvious answer is the variation in GDP: $386 billion nominal for South Africa in 2019 and $2.9 trillion nominal for the UK in 2018. More transactions require more accountants.

It follows then that any planned or actual growth in a nation’s economy commands a proportional increase in the ranks of its Professional Accountants. This is something the government must seriously consider if it hopes to make progress.

Young accountants
Where these extra accountants will come from is not hard to guess. The SONA fell close to Youth Day, an occasion to acknowledge the commitment of young South Africans to positive change and the part they have historically played in it.
​
Even today, we see them standing up fearlessly for the environment and calling for an end to corruption.

This ethical mindset is exactly what the Profession needs. If there is training to be done, let it first be for a new wave of Professional Accountants who are guided by higher ideals.

And if skills development funding is to be given, let it first be for those who have the aptitude for accounting but not the means to obtain the required qualifications. Supporting them will ensure the optimal use of the finances that fuel change.
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
​
0 Comments



Leave a Reply.

    Welcome to the SAIPA newsroom. For releases prior to August 2014 please click here.

    Archives

    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    April 2015
    February 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014

    Categories

    All
    2014/15 Tax Filing Season
    2016 Tax Administration Laws Amendment Bill
    21 February 2018
    4IR
    Accountability
    Accountancy
    Accountants
    Accounting
    Accounting Ethics
    Accounting Institutions
    Accounting Integrity
    Accounting Standards
    Advice For Professional Accountants
    Africa
    Anti-corruption Pledge
    B-BBEEE
    Blockchain
    Bongani Coka
    Brian Purcell
    Bridging The Gap
    Budget 2015
    Budget 2016/17
    Budget Speech 2018
    Business
    Business Budget
    Business Rescue
    Cadre Formation
    Carbon Tax
    Careers
    CEO
    Code Of Ethics
    Companies Act
    Constitution
    Continuing Professional Development
    CPA Ireland
    CPD
    Cryptocurrencies
    Cryptocurrency
    Cyber Crime
    Cyber Security
    Cyril Ramaphosa
    Darren Gorton
    David Van Rooyen
    Davis Commission
    Debt
    Debt Intervention Bill
    Deloitte
    Department Of Basic Education
    Department Of Home Affairs
    Die Hoërskool DF Malan
    Different Types Of Accountants
    Doctoral
    Economic Climate
    Economic Development
    Economic Growth
    Economic Instability
    Economy
    Education
    Empowerment
    Environment
    Estate Planning
    Ethics
    Ettiene Retief
    Exxcellence
    Faith Ngwenya
    Female Entrepreneurs
    FICA
    FICA Bill
    Finance Minister
    Financial Intelligence Centre Act
    Financial Statements
    Fiscus
    Foreign Trade
    Fraud
    Georgina Barrick
    Global Economy
    Government
    Government Institutions
    Grade 11
    Grade 12
    Grant Thornton
    Health Issues
    Honours Degree
    HSBC
    IFAC
    Initial Coin Offerings
    International Business Report
    International Federation Of Accountants
    International Standard Of Review Engagements
    IRC Of SA
    Job Creation
    Job Losses
    Juane Cronje
    KPMG
    Kwa-Zulu Natal
    Large Business Centre
    LBC
    Learners
    Legal
    Malusi Gigaba
    Mandela Day
    Mark Kingon
    Marnus Broodryk
    Masters Degree
    Mathematics
    Medium-Term Budget Policy Statement
    Membership
    Mid-term Budget
    Mini Budget
    Moetapele Programme
    Momorandum Of Understanding
    Money Launderers
    Monitoring Females
    MTBPS
    NAO
    National Accounting Olympiad
    National Budget 2017
    National Consumer Tribunal
    National Credit Amendment Bill
    National Credit Regulator
    National Development Plan
    National Health
    National Imperatives
    National Tax Thesis
    NOCLAR
    Non-compliance
    Non-Compliance With Laws And Regulations
    Norton Rose Fullbright
    Obesity
    PAFA
    Pan African Federation Of Accountants
    Parilament
    Parliament
    Parliament’s Trade And Industry Committee
    Passenger Identity
    Paying Taxes Report 2018
    PE Exam
    Personal Details
    Personal Income Tax
    Pravin Gordhan
    Prem Govender
    Professional Accountants
    Professional Accountant (SA)
    Professional Accounting
    Professional Evaluation Exam
    Project Achiever
    Project Achiever Extended
    Protection Of Information
    Public Schools
    PWC
    Ragiema Thokan Mahomed
    Ragiema Thokan-Mahomed
    Rashied Small
    Repositioning
    Retirement Funding Reform
    SAIPA
    SAIPA Budget Breakfast
    SARS
    School
    School Learners
    Service Delivery
    Shahid Daniels
    Shahied Daniels
    Shirley Olsen
    Sibusiso Thungo
    Skills
    Skills Development
    Skills Retention Plan
    Skills Shortage
    SMEs
    South Africa
    South African Institute Of Professional Accountants
    South African Institute Of Professional Accountants
    South African Institute Of Tax Professionals
    South African Schools Act
    Struggling Economy
    Students
    Sugar Tax
    Sugary Drinks
    Sustainibility
    Tax
    Tax & Accounting Thesis Competition
    Tax Administration Act
    Tax Administration Laws Amendment Bill
    Taxation
    Tax Clearance Certificates
    Tax Compliance
    Tax Filing Season
    Tax Indaba 2016
    Tax Law
    Tax Ombud
    Tax Payers
    Tax Practitioner
    Tax Season
    Tax Thesis
    Tax Thesis Competition
    Technology
    Tertiary Education
    The Financial Intelligence Centre Amendment (FIC
    Thesis/dissertations
    The South African Institute Of Professional Accountants
    The South African Revenue Service
    The Tax Administration Act
    Thomas Hoeppli
    Tom Mojane
    Transformation
    Treasury
    Trust
    Trusts
    UCT
    Unemployment
    University Of Cape Town
    Value Added Tax
    VAT
    Wealth Taxes
    Winslyn
    Women
    Women Empowerment
    Women's Month
    Workplace
    World Bank
    Xenophobia
    Youth
    Zobuzwe Ngobese

    RSS Feed

CONTACT US

office [at] atthatpoint [dot] co [dot] za
© COPYRIGHT 2020
ALL RIGHTS RESERVED.

  • home
  • services
  • about us
  • our work
  • our thoughts