Annual Financial Statements
It is a requirement for any business that is actively operating to keep records and have annual financial statements.
These are also required by SARS when submitting annual income tax returns and also required by finance institutions prior to any financing being granted.
Don’t fall into a trap of cutting corners and submitting financials that are not sound and end up with declined finance.
Annual Financial Statements Benoni: Why They Matter
Any actively trading business is required to keep proper records and prepare Annual Financial Statements (AFS) each year. SARS requires them alongside your annual income tax return, and banks or finance institutions will ask for them before approving any funding, vehicle finance, or credit facility.
Cutting corners here is a common mistake. Financial statements that aren't properly compiled can lead to declined finance applications or SARS queries.
They can also complicate a CIPC annual return. We compile AFS that are accurate, compliant, and hold up to scrutiny — whether that's from SARS, a bank, or a potential investor.
As a Benoni-based practice serving businesses across the East Rand, we handle this every year for companies, close corporations, and sole proprietors who need financials they can actually rely on.
Compiled vs. Audited Financial Statements — What's the Difference?
This is one of the most common points of confusion for South African business owners, and it matters because it affects both cost and legal requirement. A compilation means we prepare your AFS from your accounting records, in the correct format, with a compilation report attached — this is what most small and medium businesses need. An audit is a formal, independent verification of those financial statements, required by law only for certain companies (broadly, those meeting specific public interest score thresholds under the Companies Act, or where your Memorandum of Incorporation requires it).
If you're not sure which applies to you, this is worth confirming before you pay for either — an audit costs significantly more than a compilation, and most owner-run businesses in Benoni don't need one. We'll tell you plainly which category your business falls into rather than upselling you into an audit you don't legally require.
What Happens If You Don't Submit Annual Financial Statements?
Skipping AFS doesn't just risk an awkward SARS query. Without them, you can't accurately complete your company income tax return (ITR14, per SARS), which means SARS may raise an assessment based on estimates — usually not in your favour.
Banks and finance providers will decline funding applications outright without current AFS. And if your CIPC annual return is due, incomplete or missing financials can complicate that filing too, risking your company being flagged as non-compliant or, in ongoing cases, deregistered.
Annual Financial Statements vs. Your CIPC Annual Return — They're Not the Same Thing
These two get mixed up constantly. Your CIPC annual return is a statutory filing confirming your company still exists and is trading — it's not a tax or financial filing. Your Annual Financial Statements are the actual financial record of your business's performance for the year, used by SARS and lenders. You need both, they serve different purposes, and neither substitutes for the other.
What's Included
How It Works
Using your bookkeeping records for the financial year — ours if we handle your monthly bookkeeping, or yours if compiled elsewhere.
Preparing all required statements and notes in line with applicable accounting standards.
We walk you through the figures before anything is finalised, so you understand what they show.
Delivered in a format accepted for tax returns, finance applications, and annual return submissions.