Credit Risk Explained

person using a laptop and holding a bank cardCredit risk is the possibility of a loss resulting from a borrower’s failure to repay a loan or meet contractual obligations. Traditionally, it refers to the risk that a lender may not receive the owed principal and interest, which results in an interruption of cash flows and increased costs for collection. Excess cash flows may be written to provide additional cover for credit risk. When a lender faces heightened credit risk, it can be mitigated via a higher coupon rate, which provides for greater cash flows. (more…)

Things to Consider When Setting and Communicating Credit Limits

woman on the phone in officeCredit limits serve a variety of purposes. Companies can use them as a guideline for order approval, to minimize the upward spiral of orders or to call immediate attention to a change in a customer’s purchasing or payment behaviour.

Often the tendency is to let the credit limit simply become a matter of course, which means that a company approves any order the customer places. This basis for credit decisions should be reserved for only very substantial and financially sound customers. Consider the following information when working with credit limits: (more…)

Maintaining and Updating Employee Payroll Records

Man working on laptopOne of the primary responsibilities of the HR department is to maintain employee records and regularly keep them updated. It is not just a good practice but it is also made mandatory by the law. These records help companies gather and analyze comprehensive information about their workforce at a micro as well as macro level.

How to Maintain and Update Employee Payroll Records


What is a Capital Budgeting?

Woman working on computerCapital budgeting is the process of making investment decisions in long term assets. It is the process of deciding whether to invest in a particular project as all the investment possibilities may not be rewarding.

Thus, the manager must choose a project that gives a rate of return more than the cost financing such a project. That is why he must value a project in terms of cost and benefit. (more…)

Applying for A Tax Debt Compromise

Hands on a keyboardSection 200 of the Tax Administration Act (“TAA”) deals with the Compromises on Debt owed by individuals, trusts, close corporations and companies. It allows a senior SARS official to compromise a tax debt which could be comprised of taxes, penalties, interest and even additional tax if certain requirements are met.

The Term “Compromise” Is Defined In Section 192 Of The TAA As An Agreement:


Completing the Financial Statements Engagement In Compliance With The Legislative Requirements

Two pairs of hands brainstorming over paper and laptopsIn general, engagements to issue a report on financial statements should be performed in terms of relevant statutory requirements, common law requirements related to professional competence, due care and a code of conduct issued by a professional body.

A report may only be issued once all the above requirements are met.

The duties of accounting officers are explicitly stated in various statutes.

However, in addition to these statutory duties, accounting officers have certain common law duties, such as: (more…)

Performing the Evaluation of The Risks to The Business of The Financial Distress Indicators Identified

Serious business meetingBelow are some of the signs, as part of the procedures that corporates must follow, to assess if the company is in financial distress. Looking and analysing the following and other indicators of financial distress could assist the company to detect the risks and costs that could occur.

A financial distress report would then include all the indicators assessed and state how they will have negative impacts on the finances of the company and why they were considered as ones that will eventually impact the company’s financial position negatively. (more…)

Chris Naidoo

photograph of Chris Naidoo from PATCGrowing up in a town where Chris saw people struggle has motivated him to become a successful man. This dream he had has motivated him to study and work hard to one day have all the finer things in life. He has completed his National Diploma in Financial accounting and has a great passion for this field. He has excelled with a Cum-laude pass. He has gained a lot of knowledge in his career thus far. The abilities and skills that he’s attained during his years of work and study has helped him to grow as a professional and also made him more aware of the business world and the importance of client-service. (more…)

Cindy Stefano

photograph of Cindy Stefano from PATCCindy is an extremely talented, competent and experienced business professional with a 15-year track record and proven skills as head of her department, in the field of accounting, taxation and bookkeeping. She has developed competencies within highly competitive environments that gave her the experience to deal with various companies and individual clients, as well as her supporting team members over the years. (more…)

Darusha Chetty

photograph of Darusha Chetty from PATCDarusha is a dynamic and energetic person who has over 9 years’ experience in the accounting industry. She’s a well-mannered, articulate and hardworking individual who is always highly motivated. She works well under pressure, reliable and carries out tasks in a thorough and precise manner with excellent communication skills both over the phone & face to face. She is detail-oriented, efficient and organized professional. Darusha possesses strong analytical and problem-solving skills, with the ability to make well thought out decisions. She is resourceful in the completion of projects and effective at multitasking. With experience, skills and knowledge in all the various fields of the accounting industry makes her a highly competent team player. (more…)