Why Your Business Needs a Registered Accountant for Annual Financial Statements & Tax Returns

Annual Financial Statements (AFS) are a legal requirement and a reflection of your business’s financial health.

Running a business in South Africa comes with many financial responsibilities, and two of the most important are Annual Financial Statements (AFS) and Tax Returns. While it might be tempting to handle them yourself (or ignore them altogether), this is not a risk worth taking.

A registered accountant and accounting firm, like BNT Accounting and Taxation, ensures your financials are done correctly, legally, and strategically, saving you from costly mistakes and keeping your business compliant. Plus, having an independent review in line with the Companies Act can add credibility and security to your financial operations.

Let’s break down why hiring a professional accountant for these tasks is essential for your business’s success.

Annual Financial Statements (AFS): Why You Can’t Afford to Get Them Wrong

Your Annual Financial Statements (AFS) are more than just numbers on a page - they are a legal requirement and a reflection of your business’s financial health. Every company in South Africa (except some small private businesses) must prepare AFS according to the Companies Act of 2008 and relevant accounting standards (IFRS or IFRS for SMEs).

✅ Why a Registered Accountant like BNT Should Handle Your AFS:

✔ Compliance with Legal Requirements

A registered accountant knows the law and ensures your financials are prepared correctly to meet SARS, CIPC, and financial reporting standards.

✔ Accuracy & Reliability

Financial statements need to be precise and transparent. An accountant ensures your figures are accurate, reducing the risk of misstatements or penalties.

✔ Business Insights & Decision-Making

Your AFS provides a clear picture of your company’s financial performance, helping you make better business decisions regarding growth, investments, and cost management.

✔ Funding & Investment Readiness

If you ever need a bank loan, investor funding, or supplier credit, you’ll need professionally prepared financial statements. Investors and banks won’t trust DIY financials!

Tax Returns: Why DIY Tax Filing Can Be a Costly Mistake

Filing your business tax return isn’t just about submitting numbers to SARS—it’s about staying compliant and minimizing tax liability legally.

✅ Why BNT Should Handle Your Tax Returns:

✔ Ensures Compliance with SARS

SARS loves catching businesses that file incorrectly or miss deadlines. A registered accountant makes sure you’re fully compliant to avoid penalties and audits.

✔ Maximizing Tax Deductions & Savings

An expert accountant knows where you can legally reduce your tax bill - from business expenses to depreciation claims and tax credits.

✔ Avoids Errors & Reduces Risk of Audits

Even a small tax filing mistake can lead to a SARS audit, which is time-consuming, stressful, and costly. Accountants ensure everything is done correctly the first time.

✔ Saves You Time & Headaches

Instead of struggling with tax forms and calculations, let a professional handle it efficiently and correctly, so you can focus on running your business.

Why an Independent Review Matters (As Required by the Companies Act)

An Independent Review is a less complex and more cost-effective alternative to a full audit, but still provides credibility and accuracy to your financial statements. The Companies Act of 2008 requires an independent review for certain companies that do not require an audit.

✅ Why an Independent Review is Beneficial:

✔ Ensures Transparency & Trustworthiness

An independent review adds credibility to your financial statements, making them more reliable for shareholders, investors, and lenders.

✔ Detects Errors & Irregularities

Even if you have an in-house accountant, an external review can identify mistakes, risks, or potential fraud that may go unnoticed.

✔ Enhances Business Reputation

Having independently reviewed financials improves your business’s reputation, making it easier to win contracts, attract investors, and build partnerships.

✔ Legal Requirement for Many Companies

If your company is not subject to an audit, an independent review is still required under the Companies Act, depending on your Public Interest Score (PIS) and company type.

Final Thoughts: Get the Experts on Your Side

Trying to handle Annual Financial Statements, tax returns, and independent reviews on your own can be risky, time-consuming, and costly. A registered accountant like BNT ensures your business stays compliant, financially sound, and ready for growth.

Don’t leave your business’s financial future to chance—contact BNT today for expert accounting, tax, and independent review services!

Annual Financial Statements and Tax Returns - Leave it to BNT