Our expert financial management team will assist you to compile and produce Financial Reports which for management will help reduce overheads, streamlines processes while providing up to date and ongoing records of accounts
Our qualified accounting team utilises the latest technology and systems and technology to manage:
- Cash flow
- Quarterly or annual financial statements
- Income statement
- Balance sheet
- Statement of cash flows
- Statement of retained earnings
Financial Management and ReportingAn up to date financial management team will assist you to reduce overheads, streamlines processes while providing up to date records of accounts for healthy and profitable business.
We offer a turn-key financial management service where we compile and sign-off Annual Financial Statements, Audits and Monthly Management Reports.
Strong financial management and monitoring identifies opportunities to maximise your profits in the short term and to grow your capital value in the long term. CA RA Mpako Accounting team explores the complex challenges of financial management decision-making processes and deals with issues such as debtors, cash-flow and financial statements.
Cash Flow ManagementCash management refers to the collection, concentration, and disbursement of cash. Cash flow problems are a leading factor in business failure so optimising your cash flow should be a number one priority. Cash flow management provides assurance against insolvency, a margin of safety against unforeseen business issues and a healthy environment for employees to feel secure and for the business to expand
Some cash flow basics:
- Create a cash flow budget and monitor short and long term performance; designate an employee to monitor cash flow
- Track your money inflows and outflows
- Produce cash flow budgets
- Invoice promptly and accurately with payment due date notifications
- Incentivise faster payments and/or discourage late payments
- Cut costs where possible
- Get a business line of credit as insurance against future unforeseen problems (use accounts receivable or inventory as collateral)
- Delay payments to vendors (without risking late payment penalties). Pay early is if there is a worthwhile incentive
- Use latest technology (e.g. professional accounting software solutions; cash flow spreadsheets in the cloud)
- Cultivate beneficial relationships (e.g. banks services such as overdrafts/credit; Online Banking)
Let us share our knowledge of different cash management techniques
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Debtor ManagementDebt Planning and Reduction is one of the biggest challenges today for any small business is obtaining cost effective financing, and then managing that debt. The great advantage we have as accountants is that we have a working knowledge of most of the financing services that are available on the market. We can help you choose the financing model that works best for your business.
For some clients one of the first things we do is advise them to adopt a debt restructuring strategy that drastically reduces their monthly payments to service their debt, which then frees up their cash flow.
Operational Bookkeeping and Payroll Management is a key area that we get to provide consulting and advisory accounting services to small and medium sized businesses. Talking to your accountant before making any new hire, first to make sure that your business is in line with current employment legislation, and second, to make sure you take all the associated costs for a new hire into account when you are deciding on salaries and benefits
Bookkeeping utilising the latest technology and systems reduces overhead, streamlines processes and provide up to date records of accounts.
Effective debtor management is central to a healthy cash flow for your business. As part of our accounting and financial management service, CA RA Mpako will ensure your accounts payable and accounts receivable management is functioning optimally. This will ensure that you are able to pay creditors and employees on time and help protect your business reputation and ensure that profit distributions and commitments are possible.
Other considerations to help avoid risk and to design your contracts are to conduct credit checks, and look at potential customer payment records and credit information before engaging with them. Our teams use their knowledge of the Consumer Protection Act, about consumer rights to help you manage the process of customer consent and contract finalisation.
A solid debtor management strategy, knowing when and how to approach recovery can also reduce the high cost of litigation over overdue and outstanding debt.
Financial statements are written records that convey the financial activities and conditions of a business or entity.
Preparation of general-purpose financial statements (including the balance sheet, income statement, statement of retained earnings, and statement of cash flows) are the end product of the accounting system in any company and represent the purpose of financial accounting.
The statements may be prepared for a variety of reasons and can be simple or complex depending on the size of the company and their general purpose e.g. banks and credit providers often want basic financials to verify that a company can pay its debts, while SARS require audited financial statements from all public companies.
Custom reports for banks/ credit providers provide a view of your business performance in summarized financial records which will enable you to make calculated business decisions on issues such as:
- Budgeting & Forecasting
- Inventory management
- Work in process (WIP)
- Foreign banking management
- Fixed asset management
- Balance sheet generation and review
- General Ledger
Financial statements are often audited by auditing firms to ensure fair presentation of the financial information and for tax, financing or investing purposes. For listed entities, financial analysts rely on data to analyse the performance of, and make predictions about, the future direction of a company’s share price. One of the most important resources of reliable and audited financial data is the annual report, which contains the firm’s financial statements.
The three major financial statement reports are the income statement, balance sheet and statement of cash flows. The financial statements are prepared by transferring the account balances on the adjusted trial balance to a set of financial statement templates. Some statements need footnote disclosures while other can be presented without any.
Unlike the balance sheet, the income statement covers a range of time (e.g. a year for annual financial statements). The income statement provides an overview of revenues, expenses, net income and earnings per share. It usually provides two to three years of data for comparison.
The balance sheet provides an overview of assets, liabilities and shareholders’ equity at a point in time and which is usually at the end of the financial year.
The balance sheet equation or “accounting equation” is usually expressed as Assets = Liabilities + Stockholders’ Equity,
The balance sheet identifies how assets are funded, either with liabilities, such as debt, or shareholders’ equity, such as retained earnings and additional paid-in capital. Assets are listed on the balance sheet in order of liquidity. Liabilities are listed in the order in which they will be paid.
Short-term or current liabilities are expected to be paid within the year, while long-term or concurrent liabilities are debts expected to be paid in more than one year.
Statement of cash flows
The cash flow statement combines the balance sheet and the income statement and reconciles the income statement with the balance sheet in three major business activities (operating, investing and financing).
Operating activities include cash flows made from regular business operations.
Investing activities include cash flows from the acquisition and disposition of assets, such as real estate and equipment.
Financing activities include cash flows from debt and equity investment capital.
Cash Flow Statement
Profit and Loss Statement
Accounts Receivable Ageing
Accounts payable (bills and payments)
Accounts receivables (invoices and collection)
Daily General ledger maintenance
Time tracking & job cost reporting
Sales and use tax filing
Bank account reconciliation
Credit card reconciliation
Statutory and Company Secretarial SupportUsually the company secretary is responsible for the efficient administration of a company, particularly with regard to compliance with statutory and regulatory requirements.
CA RA Mpako provides fully outsourced and comprehensive turn-key management accounting and company secretarial services to entities with limited resources that wish to focus management effort on growing their business.Statutory and Company Secretarial Support