Deadline: 30 April 2013 – Your New MOI:
Every company which existed prior to 1 May 2011 is required toensure that it’s Memorandum and Articles of Association is aligned with the 2008 Companies Act, as amended.
The deadline for submission of your new MOI to CIPC is the 30th April 2013.
Here are some compelling reasons why it is advisable to meet the deadline:
- If the amendment is filed before 30 April 2013, there will be no CIPC fee charged
- Any provision contained in a company’s current Articles that is in conflict with the new Act will not be valid after 30 April 2013
- The new Act has removed the compulsory audit of private companies, if their public interest score is less than 350. The annual financial statements for the year ending February 2013 will have to be audited, unless the company has changed its Articles, or has replaced them with a new MOI
- From 30 April 2013 it will be extremely difficult for directors and shareholders of companies, especially private companies, to know which of the provisions of their Articles are still valid. As the Act changed the responsibilities of directors substantially, the directors will be at a greater risk if the Articles of their companies have not been harmonised with the provisions of the new Act.
We do not recommend that you use the CIPC prescribed forms, as these are fraught with errors.
We are able to advise you on the critical issues affecting your new MOI. We will assist you with drafting a new MOI for your company, which both meets with your specific requirements, and which is compliant with the new Act.
Please feel free to contact our offices for further advice and assistance.
Provisional Tax and Administration Penalties:
A provisional taxpayer is any person who receives income other than remuneration (for example, additional sources of income such as interest from investments), which has not been subjected to PAYE, even where he or she may earn a salary. Companies, close corporations and trusts are automatically categorised as provisional taxpayers.
The provisional tax system ensures that taxpayers provide for their final tax liability by paying at least two amounts in the course of the year of assessment. Final liability is determined upon assessment.
A second provisional tax payment has to be made to SARS, typically in February. For taxpayers with a taxable income of more than R1 million this is up to 80% of their estimated taxable income for the year of assessment, and for those earning less than R1 million it is up to 90%.
The Tax Amendment Act (TAA) provides that if the taxable income finally assessed is equal to or more than R1million, the underestimation penalty is fixed at 20%, calculated on the difference between the amount of actual taxable income as assessed and the amount declared on the IRP 6 return, and a penalty of 10% on the tax for which taxpayers are liable, but have not paid.
Failure to submit the estimate will attract another penalty for non-submission of an estimate.
SARS allows taxpayers to estimate their basic amount based on their taxable income in the previous year of assessment, with an increase of 8% per annum on this basic amount, if the most recent assessment is older than 18 months (TAA).
Contact our offices for assistance with your estimates (provisional returns are due by individual provisional taxpayers at the end of February).
Benefits Of Cloud-Based Computing:
The term “cloud computing” refers to performing computer tasksusing services delivered entirely over the Internet. Cloud computing is a movement away from programs needing to be installed on an individual’s computer towards the applications being hosted online.
Cloud-based accounting is the latest and greatest new way to track financial statements and take care of the accounting of your business from any location in the world. With just an internet connection, business owners can travel far from the physical location of their business yet still be able to gain remote access to the latest updates on the books. With the ability to take care of accounting on the go, business owners are not grounded to one location and can spend more time traveling, gaining new clients and taking care of other important business matters outside of the office.
Furthermore, a cloud-based system enables your accountant to work on your books at his or her convenience from their own location at any time. This means that you and your accountant can work simultaneously with your financial data.
With a cloud-based system, your will be able to seamlessly manage your company’s finance, accounting, payroll and other financial or administrative functions at a fraction of the cost you are currently paying.
What’s even better is to integrate your cloud-based accounting system with a CRM (Customer Relations Management) system. Good CRM software solutions are more than just a customer’s name and telephone number. They are a roadmap of your customer that will lead your business to success for years to come. A good CRM system will track a customer’s personality, preferences, and much more.
If you consider the cost of software licenses, maintenance, software/hardware upgrades, customization and support of general software products, using a web-based system is definitely the way of the future!
Social Media And The SME:
Social media is today’s most transparent, engaging and interactive form of public relations and allows people to broadcast their views, messages, images and events to the masses.
In today’s business environment, the ability to be available online for your customers 24/7 is increasingly seen as a given. As a result, companies of all sizes need to work harder than ever not just to deliver high-quality customer service, but to do so in an efficient and timely manner.
With so many people participating in social media, it creates a huge opportunity for businesses to communicate with the consumer and not just a place for old friends to reunite. Facebook, for example, is the largest and most popular social network and currently has over 1 billion members, or for a growing business, 1 billion potential customers!
Managing social media can be extremely time-consuming especially when dealing with several different platforms at once. It is important to invest time in developing a social media presence and understand that you will not see results overnight.
When posting, consider yourself a resource and a helping hand to those who follow your activity. Be consistent and provide high value educational content, promoting your products/services only occasionally.
Be willing to learn. The key is to listen to what customers are saying about your brand and respond to all comments whether positive or negative. This not only improves the company’s image, but can also open your eyes to what customers really think of your brand and products. This can lead to collaboration between the business and its customers, helping to achieve an improved product/service that the consumer is happy with.
Through regular and meaningful conversation with customers, social media can be extremely fulfilling and effective in helping your business to grow.