When we think of learning and development, the first people to come to mind are either teachers or lecturers in academia. A chartered accountant may not spontaneously be your first thought, yet the profession requires CAS(SA) to train and develop trainee accountants in the workplace.
In the accounting profession, learning and development has evolved well beyond training article clerks and has progressed into coaching small businesses. SMMEs are a major contributor to South Africa’s GDP and they make up a significant portion of the country’s economic activity. The accounting fraternity also greatly contributes to the economy by having a substantial share of employment output and tax revenue input. They are one of the largest employers in the country, which helps reduce unemployment.
Small businesses are continuously developing in the country and will benefit hugely with the support of a (CA)SA, or any other designation belonging to SAICA, to assist them in understanding their financial journey. It ranges from separating business and personal expenses to understanding the financial ratios provided by their accountants. SAICA Enterprise Development has various Enterprise and Supplier Development programmes that partner with CAs(SA) to provide finance coaching to entrepreneurs who are technically skilled but require assistance in developing financial excellence and understanding their finances better.
The support that a CA(SA) or any other SAICA designation can provide enables the entrepreneur to concentrate on their technical skills, while the SAICA member can help to make sense of the numbers. This assistance enables the entrepreneur to grow their business to become more competitive and obtain funding to expand, or to look at various cost savings exercises for sustainability.
CAs(SA) assist small business by providing advice and expertise in the following key areas:
- Regulatory compliance − CAs(SA) are well-versed in accounting standards and tax regulations. They can assist organisations in South Africa by complying with financial reporting and taxation requirements, thereby ensuring transparency and adherence to the law.
- Business growth − CAs(SA) can provide valuable insights into financial strategies that can drive business growth. They can help businesses in South Africa plan for expansion, secure financing, and optimise their financial operations.
- Risk management − CAs(SA) are skilled in identifying and mitigating financial risks. They can help organisations in South Africa assess and manage risks related to investments, operations and financial transactions.
- Corporate governance − CAs(SA) can play a key role in promoting good corporate governance practices in South African companies. They can help establish effective internal controls, ethical standards, and accountability mechanisms.
- Ethical leadership − CAs(SA) are expected to adhere to high ethical standards. Their commitment to ethical conduct and integrity can have a positive impact on the overall business environment in South Africa.
- Tax compliance − Small businesses often face complex tax regulations. CAs(SA) and other SAICA designations ensure that businesses comply with tax laws, minimise tax liabilities, and take advantage of available tax deductions and credits. This can lead to significant cost savings.
- Cost control − They can help identify areas where businesses can reduce costs and improve profitability. They analyse financial data to pinpoint inefficiencies and recommend cost-cutting strategies.
- Financial analysis − They will analyse financial data to provide valuable insights into a company’s performance. This information can help business owners understand their strengths and weaknesses and make strategic decisions accordingly.
- Job creation − As businesses grow and thrive, they often create job opportunities. CAs(SA), through their financial expertise, contribute indirectly to reducing unemployment rates in South Africa.
- Community development − CAs(SA), as professionals with financial acumen, can contribute to community development initiatives and social responsibility projects, which can have a positive impact on the quality of life for South Africans.
Chartered accountants in South Africa play a multifaceted role in shaping the country’s financial and economic landscape. They contribute to financial stability, good governance, and sustainable business practices, which are essential for the growth and prosperity of the nation and in particular, small businesses.
Author
Vashna Rawjee, SAICA Enterprise Development Customised Project Manager
