Author: Jono

Understanding the Principles of ISQC 1

Business meeting

The objective of the firm is to establish and maintain a system of quality control to provide it with reasonable assurance that: The firm and its personnel comply with professional standards and applicable legal and regulatory requirements; and Reports issued by the firm or engagement partners are appropriate in the circumstances.

Implementing Liquidation Procedures for The Business


The liquidation process can be defined as the process in which a company voluntarily proceeds to declare itself as being insolvent or where a creditor of the company brings an application to court in order to have the company declared insolvent. The result thereof is that the company may no longer proceed to operate its…

Finalising and Signing Off the Financial Statements

Man signing a document

Only one director is required by law to sign the balance sheet on behalf of the board but, in the case of companies with shares traded on a market, it is quite common to see the balance sheet signed by two directors, for example, the Chairman and the Finance Director. To some extent this is…

Using Break-Even Analysis To Make Business Decisions

money measurement on a page with figures

In the graph, the point at which total fixed and variable costs are equal to total revenues is known as the break-even point. At the break-even point, a business does not make a profit or loss. Therefore, the break-even point is often referred to as the “no-profit” or “no-loss point.” Anything above this point would…

What is meant by Creditors’ Reconciliation Statement

Creditors’ reconciliation statement is the process by which Creditor/s account (creditor’s transactions in the system) is compared and reconciled against a monthly statement received from the creditor. Once the two records are reconciled, the account becomes payable.

Credit Risk Explained

person using a laptop and holding a bank card

Credit 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…

Things to Consider When Setting and Communicating Credit Limits

woman on the phone in office

Credit 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…

Maintaining and Updating Employee Payroll Records

Man working on laptop

One 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….

What is a Capital Budgeting?

Woman working on computer

Capital 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…

Applying for A Tax Debt Compromise

Hands on a keyboard

Section 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…