Knowledge Centre

Turn your data into meaningful information with financial statements prepared by a Chartered Business Accountant.

Preparing Financial Statements

1. What You Need to Know 

Financial statements are the universal language of business. 
They present your financial position, performance, and cash flows to stakeholders. CBAs prepare these in line with the right framework (IFRS, IFRS for SMEs, or OCBA) and calculate your Public Interest Score (PIS) to determine which reporting requirements apply.   

2. Why It Matters to You 

Well-prepared statements open doors and reduce risk. 
Required for tax, funders, and regulators. 
Essential for bank loans, tenders, and investor confidence. 
Helps management track performance and make decisions. 
Ensures compliance with the Companies Act and SARS. 

3. Frameworks, Standards, or References 

Financial statements must align with recognised frameworks. 

  • Standards: IFRS, IFRS for SMEs, OCBA (Other Comprehensive Basis of Accounting). 

  • Compliance: Companies Act reporting requirements, PIS score thresholds. 

  • References: CIBA guides on PIS calculations and framework selection. 

  • What your accountant will actually do: 

  • Assess your PIS score to determine required framework. 

  • Prepare statements under IFRS, IFRS for SMEs, or OCBA. 

  • Ensure all disclosures and formats meet standards. 

  • Present statements to management, shareholders, or funders. 

4. How to Apply  

Steps to prepare financial statements with your accountant: 

  1. Provide accurate and complete accounting records. 

  2. Determine your PIS score with your accountant. 

  3. Agree on the correct framework for your business size. 

  4. Accountant prepares draft financial statements. 

  5. Review and approve final statements for submission. 

5. Common Mistakes to Avoid 

Avoid these errors that undermine credibility: 

  • Using the wrong framework for your size or PIS score. 

  • Missing required disclosures. 

  • Preparing statements too late. 

  • Treating statements as “for SARS only” → They are tools for decision-making too.