Results 1 to 8 of 8

Thread: Accounting - How do you view this?

  1. #1
    Bronze Member Miro Bagrov's Avatar
    Join Date
    Dec 2011
    Location
    Pretoria, South Africa
    Posts
    152
    Thanks
    34
    Thanked 51 Times in 41 Posts
    Blog Entries
    2

    Accounting - How do you view this?

    Looking for general input from all members:

    As far as accounting and financial management practice in your business which approach do you follow:
    • Keep no records seperate, eg. use the bank statement balance for reference.
    • Hire an individual
    • Outsource the function to a consultant
    • Do it yourself
    • Get a family member or friend who studied it, to do it for free


    Also what experiences have you had with different options?

  2. #2
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    2,242
    Thanks
    207
    Thanked 310 Times in 268 Posts
    In my opinion one should never be casual about accounting. When a business is small one is very tempted to "hang loose" and record keeping is casual.

    If, however, the business grows and starts making serious money, the lack of accounting starts becoming sloppy, if not downright dangerous. It is always better to have the basics in place right from the beginning.

    If you can do it yourself, well and good.
    If you are too busy or that kind of thing is not your scene - then get someone else to do it. But always check the books periodically for yourself, because it can get away from you too easily.

    And why should you get a family member or friend to do it for free? Do they not deserve as much payment as someone you would hire?
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  3. Thanks given for this post:

    Dave A (16-May-13)

  4. #3
    Bronze Member Miro Bagrov's Avatar
    Join Date
    Dec 2011
    Location
    Pretoria, South Africa
    Posts
    152
    Thanks
    34
    Thanked 51 Times in 41 Posts
    Blog Entries
    2
    Generally, do you all outsource or in-source?


    I agree about the family members

  5. #4
    Diamond Member HR Solutions's Avatar
    Join Date
    Mar 2013
    Location
    Capetown/Jhb
    Posts
    3,329
    Thanks
    113
    Thanked 214 Times in 202 Posts
    We in source and have an accountant do the relevant "accountant thing" that they do at the end of the year for a PTY.
    HR Solutions - Recruitment Specialists - Johannesburg & Capetown Tel: 0861-045-263
    Upload your CV @ www.2hrs.co.za

    Biometric Fingerprint Criminal Checks (AFIS)

  6. #5
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    2,242
    Thanks
    207
    Thanked 310 Times in 268 Posts
    Insource. There is one person responsible for all the financial transactions, the payroll and the book-keeping in the business. The boss has utmost trust in his character and ethics.

    When you outsource, you are having to do most of the work for them anyway (sending of paperwork - explaining what it's for etc). Most of what they do is just organise and keep records.

    We have a reputable company of auditors who audit our books annually, correct the few mis-postings, answer any technical questions or give advice when needed.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  7. #6
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    I'm in the same situation as Mike - normally minus the misposts

    At this point I'm responsible for the internal accounting, but invoicing, bill capturing and stock management is delegated to 3 others in the company.
    The trouble with opportunity is it normally comes dressed up as work.

  8. #7
    New Member
    Join Date
    Dec 2012
    Location
    Pretoria
    Posts
    8
    Thanks
    0
    Thanked 0 Times in 0 Posts
    I think when your company is still small and just starting, but you do not have the time or skills to do the accounting, it is then better to outsource it to someone who specialises in accounting. You don't need to make use of big and expensive accountants or auditors, there are many smaller bookkeeping services or financial services out there.

    It is a good practise to check at the end of every month what the income and expenses was so that you know what to focus on and where to make adjustments for the next month. Don't wait for six months or a year to see what your situation regarding the finances are!

    I work together with such a "small" financial service company. They focus on their client's bookkeeping, and when their clients have employees and need payroll services, they outsource the payroll function to me, as I focus on the full payroll function for small businesses.

  9. #8
    Email problem KimH's Avatar
    Join Date
    Jul 2010
    Location
    Cape Town
    Posts
    362
    Thanks
    167
    Thanked 63 Times in 52 Posts
    As someone whose business is offering an outsourced bookkeeping/payroll service, I am of course all for outsourcing I do work in association with both a CA and a Professional Accountant which means I do the grunt work and they take care of the AFS and company taxation - I find this arrangement works really well for my clients, from a peace of mind and fees point of view.
    One would expect that it's only small or home based business owners that outsource, surprisingly enough the majority of my clients are medium sized and have more than one business.

    That said, always be sure that if you do go this route, that you use the services of a a properly qualified bookkeeper who is a member of one of the five controlling bodies for tax practitioners (well they better be by the 1st July anyways) - and always, always get references from their existing clients and even the accountants they work in association with.

    As a side note I was just wondering whether I could claim some CPD hours for the time I spend on The Forum SA
    "If at first you don't succeed, do it like your mother told you."

Similar Threads

  1. How to View Customer Statements in Pastell Xpress
    By fuzegraphics in forum Accounting Forum
    Replies: 3
    Last Post: 10-Dec-12, 02:09 PM
  2. Are you on Google Street View?
    By SilverNodashi in forum General Chat Forum
    Replies: 3
    Last Post: 01-Dec-10, 09:11 PM
  3. optimist view on the future of SA
    By murdock in forum General Chat Forum
    Replies: 21
    Last Post: 12-Apr-10, 03:49 PM
  4. currently, the best looking cars on SA roads - your view?
    By young in forum General Chat Forum
    Replies: 5
    Last Post: 11-Jun-08, 11:59 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •