Letter to clients – 2019

Letter to clients – 2019

Dear client

Greetings for 2019

2018 was perhaps one of the more challenging years that we faced in our country over the last decade. With major changes, scandals and uncertainties painted all over the world around us, it was a daunting task to stay positive, get out of bed and engage in the daily grind.

Some businesses closed their doors, some made emergency landings. Inflation is not looking down. Interest rates increased. And at the end, profit (if any) did not appear in the every day life of the small business in South Africa.

But besides that, 97% of the businesses in our area are still in business. Some are taking detours, but not all are going south. I think us South Africans have learned to become streetwise, resilient, creative and strong enough to face most of the everyday hurdles. Besides that, we know how to take a punch and live with the scars.

I do not foresee 2019 to be any easier. We have elections on its way, with ever increasing populism and policy uncertainty. We are exposed to dollar denominated input costs, increasing interest rates and lower returns on investments.

In 2019 the South African small business owner should have his footwork in place from as early as possible. No longer can we grow our existing business by only hoping on a better deal. Cash flow management, driving profitability and applying stricter internal controls are just some of the things that must become part of our daily routines.

When last did you have your business valued? When last did you ask yourself: am I creating value for myself (or the shareholders), and am I moving forward? Have you calculated how much cash will you have in the bank by the 31st of December 2019? Will I still be in business by 31 December?

If you can’t answer positive to any of those questions, we need a session in the consulting room.

With the above in mind, please allow me some space to discuss some important matters for the year ahead of us:

 

Office space, meetings and consulting sessions

During October 2018, I got a small office in Paarl. This space will primarily be used as a meeting point, and to create a comfortable space where matters can be discussed. On Thursdays Tessa and me will be in the office (9 am to 4 pm), so feel free to pop in if you are in the area.

All other meetings should preferably be booked and agreed in advance (by email to Tessa or me) and should be limited to business meetings. Please note that all meetings taking place in my office or yours, will be billable.

Should you decide that Paarl is simply too far, and you want to have a face to face meeting (as opposed to a Skype meeting or phone call), travelling time and travel costs will be added to the consulting fee.

You can also use the office to drop documents (at the office or at reception). Should you wish to collect any documents, please organise this in advance as the office will not be used to store physical or electronic documents.

The address is:

57 Main Road
La Concorde (the KWV Building)
Paarl

Map: https://goo.gl/maps/VurWK34ueLR2 . Ask at reception or give us a phone call / text on the usual numbers. There should be more than enough free parking around the building.

 

Fees for 2019

With the current state of the economy, fees will always remain a discussion point. Given this, I’ve decided on the following fee structure. (All amounts excluding VAT).

  • All recurring services will be increased with no more than 2% between today and 31 December 2019. The minimum increase, in Rand value, will be R20 per service.
  • All new work taken on (for existing and prospective clients) will be done at a rate of R950 per hour (as opposed to R1 050 per hour in 2018).
  • Travel cost will be billed at R600 per half hour (this factor in both travel cost and time), for travel outside Paarl.
  • Fees remain negotiable, and clients are encouraged to agree on fees before work commence on major assignments.

 

Client needs and expectations

If you came this far, please put aside some time to assist with the following.

To date I supplied my clients with traditional accounting, auditing and taxation services. I frequently get asked “what other services can you supply us with”, to which I reply, “what are your needs?”.

As a chartered accountant 15 years’ experience in servicing small and medium enterprises and a wide support network (attorneys, advocates, accountants, consultants, insurance experts, investment managers, marketing managers and tech gurus) the scope of services which I can offer directly or indirectly, is far more than traditional number crunching.

I will appreciate it if you can take a minute or two just to think about your business needs for the coming year and inform me of any areas where you think I might be needed. Alternatively, I will be happy to meet with you to discuss any ideas for further services you might require.

 

Contact details

EFGAudit Inc

 

December 2018 office closure

December 2018 office closure

Please take note of the following important dates:

Office closure for festive season: Friday 14 December 2018
Opening in 2019: Monday 7 January 2019

In order to file all statutory returns within the prescribed deadlines, salary and VAT records should be delivered to us as follow:

VAT – all information should reach our offices no later than 11 December 2018;
PAYE – all information should reach our offices no later than Friday 4 January 2019.

 

EFGAudit Inc

January 2018 Newsletter

January 2018 Newsletter

Since our previous newsletter, the financial, economical and (hopefully) political world we find ourselves in changed drastically.

Steinhoff shares took a plunge. The governing ANC party got a new president. Various companies implicated in the so-called state capture are overcome with the possibility that people may get arrested. The CIPC laid (probably the first) criminal charges against a certain large audit firm and other consultancy firms for non-compliance with the Companies Act. Given that we are heading towards free education in South Africa, the SARS will soon start to pull all the stops to fill the R53 billion shortages on the fiscal budget.

Aside from that, we are still paying the same old bills and might soon be without water.

Did I skip BitCoin? (yes…)

We can learn valuable lessons from these matters.

At EFGAudit we are here to assist our clients and prospective clients, to create, fine-tune and maintain an administrative and financial system which will serve its purpose to both the owners and other interested parties. Allow me to explain:

Steinhoff: financial reporting is the responsibility of the management of a business. As this is potentially a complex area, EFGAudit has a wealth of knowledge and experience to assist you in the compilation of financial statements, management accounts and other information (information requested by banks, valuations). By assisting our clients with this vital task, external parties, like the bank and investors, and yourself, will receive understandable information which was compiled with the highest standard in mind.

The new ANC president: the rand appreciated after Ramaphosa was elected into this top position. In the global environment that we operate, almost every business has some exposure to foreign currency fluctuations. EFGAudit has regular contact with highly skilled experts in the field, that can assist in any foreign currency related matter. If you wish to invest offshore, or need forward cover, of just seek advice, we can put you in touch with the right person.

State capture, CIPC and the companies act: this week was the first time that I noted criminal charges laid against companies with regards to non-compliance with the companies act. The companies act has a section on what constitutes criminal actions, and those may carry hefty fines, and even jail time. During the coming year, we will ensure that all our clients are compliant in this area.

Free education and the shortfall on the budget: the SARS will collect more taxes and will continue to be less tolerant on any non-compliance. We will assist our clients to be compliant, to fix all instances of non-compliance. All legal steps will also be considered to optimise your tax position, as far as possible.

Paying the old bills: I am a firm believer that any business older than 5 years can become profitable, contribute to your wealth and generate reserves to operate in a sustainable manner. Unfortunately, not all business owners have the expertise to analyse their systems, accounts and budgets to know where to optimise their cash flow, where to focus, and where to let go. Merely having an accountant to do the books, is not worth much. We are available to engage with our clients, on a regular basis, to review your data to consult on the matter relevant to the growth of your business, from a financial point of view.

With 2018 already well underway, EFGAudit would love to be of more assistance to your business.

 

Disclaimer: any company and / or names mentioned in this newsletter are for information purposes only, and are being made with reference to articles in the public domain. EFGAudit is in no position to give opinions on the matters, and do not imply that any company or person are guilty of any form of misconduct, actual or alleged.

December 2017 Newsletter

December 2017 Newsletter

As another successful year comes to an end, we would like to thank you for your continued support.

Please note on 6, 7 and 8 December our office will be closed due to tax court commitments. Our office officially closes on 15 December 2017 until Wednesday 10 January 2018. During this time we will not be monitoring emails and would appreciate your cooperation in this regard.

As of next year Tessa Agenbag, who has been working this year on a part-time basis, will be more involved in contacting you. We look forward to welcoming her to the team.

We wish you and your family a happy festive season and look forward to great things to come in the new year!

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