Business & Finance Business Information

Appointing An Accountant To Your New Business

Once you begin your own business in South Africa, it is important to appoint an accountant to it, although you may expect things to be slow-moving at the outset. Many of us may very well be a little put off by this prospect, but it happens to be not that big of a deal. Any time you appoint an accountant to a business, you in a roundabout way move away from the 'dream' or idea, and suddenly the business turns into a 'real' business immediately after an accountant is specially selected. All of a sudden things turned out to be formal. At the very least that is the belief that we typically have.

Mentionened above previously, for any new company, an accountant is required to be appointed. Some may hear this word and right away think that it is going to cost them thousands right from the start. This is not always true. It is important to distinguish between an accountant and a chartered accountant or auditor. The last mentioned is needless to say a lot more expensive, but is only called for for larger companies with extremely higher income and cash flow.

Normal accountants however, are commonly far less expensive and more flexible in their approach to your business. Their continuing fee structures usually also differ from one to another. Overall, what this boils down to is that although you would need to appoint someone like this to supervise your business activities as far as cash flow is involved, it doesn't have to be an expensive exercise. Nevertheless, important to remember is that any financial officer in this capacity must have the mandatory credentials and accreditation so as to be successfully appointed and recognized by the CIPC.

The CIPC is the committee responsible for all company registrations in the South African business place, and every new company formed in the republic will need to be registered via this governing body. The Companies And Intellectual Property Commission office works to make sure the formalization of any and all companies in the country. Fundamentally they ensure that, among other things, your business name is exclusive enough to be able to be used in the market place. Other responsibilities include the regulation of Intellectual Property, patents and so on.

Returning back to this issue though, the following accounting professions for reasons of appointment as accounting officers to companies are listed below. As it turns out there exactly 10 at the moment:

The South African Institute of Chartered Accountants (SAICA), Auditors registered in terms of the provisions of the Auditing Profession Act, 2005(CA), The Southern African Institute of Chartered Secretaries and Administrators (ICSA), The Chartered Institute of Management Accountants (CIMA), The South African Institute of Professional Accountants (SAIPA), THE IAC who have obtained the Diploma in Accountancy (IAC), The Association of Chartered Certified Accountants (ACCA), The Chartered Institute of Business Management (MCIBM), The South African Institute of Business Accountants (SAIBA), The South African Institute of Government Auditors (SAIGA)

If whomever you wish to designate to your business as accounting officer is part of, or an active fellow member of any one of the bodies described above, you should not have any problem in appointing them, and getting your business registered without this as a possible problem. See how you can start a business

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