Your Financial Yearbook
Annual Financial Statements (AFS) are the official record of your company's financial performance. Under the Companies Act of 2008, every company must prepare them within 6 months of year-end. We ensure yours are done right.
- Mandatory for all active Companies (Pty Ltd) in South Africa
- Prepared by qualified accountants according to IFRS for SMEs
- Essential for SARS (ITR14) and CIPC (Annual Returns) submissions
- Required by banks for overdrafts, bonds, and asset finance
- Includes Independent Review or Accounting Officer Report where required
Understanding AFS Requirements
One size does not fit all. Your requirements depend on your size and public interest.
Compilation
For most SMEs.
If your PI Score is below 100, we simply "compile" your statements based on your records. No audit or independent review is required, making it faster and more affordable.
Independent Review
For larger businesses.
If your PI Score is between 100-350, or if your MOI requires it, a qualified independent reviewer must perform "limited assurance" procedures to verify the statements.
Audit
For complex entities.
If your PI Score is >350, or you hold assets for the public, a full statutory audit is mandatory. We provide audit-readiness support to help you survive this process.
Who this is for
Annual financial statements matter whenever the business needs statutory compliance and external credibility.
Private Companies Near Year-End
Businesses approaching their annual reporting deadline and needing signed financial statements that are compliant and ready for directors to approve.
Businesses Filing ITR14 and CIPC Returns
Companies that cannot complete tax and annual return obligations properly without a clean set of annual financial statements.
Tender and Finance Applicants
Businesses that need current signed annual financial statements to support bank facilities, investor packs, or tender submissions.
Companies with Public Interest Score Requirements
Entities that need clarity on whether they require compilation, independent review, or audit support based on their legal threshold.
Directors Cleaning Up Year-End Risk
Owners who want to avoid year-end delays, director stress, and submission problems caused by incomplete records or unresolved balances.
Problems We Solve
Most year-end pain starts long before the statements are drafted. It comes from unclear requirements, weak supporting schedules, and unresolved balances. We bring structure to that process.
- Year-end books are not ready, so the financial statements cannot be drafted on time for SARS, CIPC, or lenders
- Directors are unsure whether the company needs a compilation, independent review, or audit support
- The trial balance contains errors, missing journals, or unsupported balances that would weaken the final statements
- Banks or tender authorities request signed annual statements and the business only has management reports or incomplete drafts
- Financial statement notes, tax adjustments, and presentation requirements are handled inconsistently or too late
- Directors risk filing delays, compliance pressure, and avoidable back-and-forth because the year-end process has no owner
Annual financial statements are the formal year-end record lenders, SARS, CIPC, and directors rely on.
The Year-End Process
From Trial Balance to Signed Report.
Trial Balance Review
We review your year-to-date bookkeeping to ensure the 'Trial Balance' is accurate and balanced before drafting statements.
Drafting & Adjustments
We process year-end journals (depreciation, provisions, tax adjustments) and draft the full set of statements.
Review & Sign-Off
You (the Directors) review the draft with our team. Once approved, you sign the Directors' Report and Balance Sheet.
Submission
We use the signed AFS to populate your ITR14 tax return and submit the Financial Accountability Supplement to CIPC.
Prerequisites & Documents Needed
The faster we get a clean year-end file, the faster we can draft the statements and move them to review and sign-off.
- A final or near-final trial balance from your accounting system for the financial year under review
- Bank reconciliations, loan schedules, asset registers, and supporting ledgers for major balance sheet accounts
- Prior-year annual financial statements and any current-year management reports already prepared
- Details of tax matters, year-end journals, provisions, dividends, director loans, and unusual transactions
- Company registration details, year-end date, shareholder information, and any MOI or review requirements
- Prompt access to directors or management for year-end queries and statement sign-off
Deliverables & Outcomes
The engagement should leave you with a signed year-end pack that supports compliance, governance, and external financial credibility.
- A full set of annual financial statements prepared for the applicable reporting framework and business context
- Year-end adjustments and note disclosures reflected in a cleaner, more defensible final pack
- Support for the linked SARS and CIPC submission process using the completed statements
- Clarity on review or audit requirements and the supporting documents needed for that stage
- A cleaner year-end file for banks, tender applications, shareholders, and director records
- A stronger handoff into business tax returns and future year planning
Timeline & Expectations
The closer the year-end file is to complete, the shorter the drafting cycle becomes.
Year-end file review
2-5 business days depending on record quality and complexity
Draft AFS preparation
5-10 business days once the trial balance is ready
Director review and queries
Varies with response time and outstanding matters
Submission support and finalisation
Usually 1-3 business days after sign-off
What can cause delays: Unreconciled balances, missing schedules, unclear tax positions, late director feedback, or additional independent review requirements can extend the process.
Benefits of Proper Year-End Statements
The benefit is not only compliance. It is also credibility, speed, and fewer year-end surprises.
Reduced year-end compliance risk because the statutory financial statements are prepared properly and on time
A cleaner base for ITR14 filing, CIPC annual return work, and lender reporting
Better visibility into what still needs cleanup before statements are finalised and signed
Less director stress because the process, documents, and legal requirements are managed in a structured way
More confidence when submitting statements to banks, shareholders, tender authorities, or reviewers
A stronger transition from annual close into tax, audit-readiness, and next-year planning
Why You Need This
The Established Business
Needs a clean set of AFS for their annual banking review to keep credit lines open.
The Tender Applicant
Needs signed, audited (or independently reviewed) statements to submit with a government tender bid.
The Compliant Startup
Even with low turnover, needs a 'compilation' engagement to satisfy SARS and shareholders.
How We Work
We believe good accounting starts with structure and consistency. Our approach is designed to give business owners clarity without unnecessary complexity.
Related Insights and Resources
Use these links to move from service scope into practical guidance, supporting documents, and regional pages.
Practical guidance on how Management Accounts Improve Business Decisions.
Practical guidance on what a Monthly Accounting Service Should Deliver Each Month.
Practical guidance on why Cash Flow Management Fails Without Current Management Accounts.
Practical guidance on budgeting vs Forecasting for Business Owners.
Practical guidance on how to Build a Clean Month-End Close Process.
Practical guidance on the 5 Accounting KPIs Every Owner Should Review Monthly.
Frequently Asked Questions
Do I need an audit?
Not always. Most SMEs in South Africa only require an 'Accounting Officer Report' or an 'Independent Review,' depending on their Public Interest Score (PI Score). We calculate your PI Score to determine exactly what level of assurance you legally require.
What is IFRS for SMEs?
It stands for International Financial Reporting Standards for Small and Medium-sized Entities. It is the global standard adopted by South Africa to ensure financial statements are consistent and comparable. We ensure your AFS comply with this standard.
What is a Public Interest (PI) Score?
A score calculated based on your turnover, debt, number of employees, and shareholders. A score below 100 usually requires just a compilation. 100-350 usually requires an Independent Review. Above 350 requires an Audit.
Can you prepare AFS if you didn't do my monthly bookkeeping?
Yes. We will take your Trial Balance from your current system or bookkeeper, perform a high-level review to check for errors, and then draft the statements. Note that if the underlying data is messy, we may need to quote for cleanup first.
How long does it take?
Once we have a final, clean Trial Balance, drafting usually takes 5-10 working days. If an Independent Review is required, allow an additional 2-3 weeks for the reviewer's process.
Why does the bank keep asking for this?
The bank needs to prove you can repay your loans. They look at your solvency (Assets > Liabilities) and liquidity (Cash availability) as proven in your signed AFS.