Recruiting Newly Qualified Chartered Accountants
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september 2011 south africa’s leading accountancy journal SMP Sector “ Small is the new Big ” Glenn Reynolds IRELAND/DAVENPORT 67340 IRELAND/DAVENPORT That challenges convention. At Investec we view things from a different angle. This entrepreneurial outlook allows us to bring you a distinctive range of specialist banking and investment products and services. www.investec.com Private Banking • Investment Banking • Asset Management • Property Activities • Capital Markets • Wealth & Investment Australia Botswana Canada Hong Kong India Ireland Mauritius Namibia South Africa Switzerland Taiwan United Kingdom & Channel Islands United States Investec Bank Limited registration number 1969/004763/06. A registered credit provider. An authorised financial services provider. Cape Town 021 416 1000 Durban 031 575 4000 Johannesburg 011 286 7000 Pretoria 012 427 8300 67340 Account 273x210.indd 1 05/07/2011 16:30 contents IRELAND/DAVENPORT 67340 IRELAND/DAVENPORT contentsSeptember 2011 updates 04 Industry News That challenges convention. At Investec we view things from a different 05 The Hope Factory, Click2Start angle. This entrepreneurial outlook allows us to bring you a distinctive range of specialist banking and investment products and services. www.investec.com commentary 06 Straight Shooting: Growing the economy - The Role of our Profession Nazeer Wadee 08 Africa Desk: The New Frontier - Driving Strategy Home Mohsien Hassim 10 Budget: Software Costs - Beyond our Control Kevin Phillips 11 Management: Activity Based Revenue - Instead of ABC Ingo Viedge 13 Software: Payroll and SMEs - Speeding Up the Auditing Process Grant Lloyd 15 Fullstop: On His High Horse - Teaching Kids to Gamble Charles Hattingh focus 17 Small is the new Big: Identifying Challenges and Opportunities Bridgette Kriel 18 18 A Job Creator: A Critical Cog for Economic Growth Edgar Rakoma 20 How to Make Your Small Practice a Big Success: Management Tips Giancarlo Attolini and Paul Thompson 22 Build Your Advisory Practice: Ideas Into Action Stuart Black and Paul Thompson analysis 24 Ending the Debate: Deferred Tax On Investment Property Measured At Fair Value Glynnis Carthy 27 A New Lease Statement: Increased Complexity Tim Acker life 33 Art: From Kitsch to Collectable Jennifer Ferreira 35 Coaching: Stress 101: If You are Stressed, You are Not Alone Stanford Payne 37 Motoring: The Bentley Experience Azim Omar trade 41 Recruitment Section Private Banking • Investment Banking • Asset Management • Property Activities • Capital Markets • Wealth & Investment 24 Australia Botswana Canada Hong Kong India Ireland Mauritius Namibia South Africa Switzerland Taiwan United Kingdom & Channel Islands United States 46 Classifieds Investec Bank Limited registration number 1969/004763/06. A registered credit provider. An authorised financial services provider. Cape Town 021 416 1000 Durban 031 575 4000 Johannesburg 011 286 7000 Pretoria 012 427 8300 67340 Account 273x210.indd 1 05/07/2011 16:30 Marina Goodson bidorbuy.co.za Financial Manager, bidorbuy.co.za uses Pastel Evolution. “We’ve always been part of the Pastel family and we’ve always been a happy customer. But with over a million online shoppers and thousands of daily transactions, we needed a software solution that could cater for a larger business with multi-currency and multi- company requirements. We’ve found a winner in Pastel Evolution!” Become part of a family that’s been around for generations. JHB +27 11 304 3530 DBN +27 31 537 7100 CT +27 21 522 7400 www.pastelevolution.co.za 44 ACCSA_SP_BidorBuy.indd 1 2011/07/29 3:01 PM from the pen Small Is The New Big he analysts agree that, in order Tto realise our country’s desired Accountancy SA is Published by employment figures and economic The South African Institute of growth, the small and medium Chartered Accountants enterprise sector is a critical cog. It’s Publisher: Willi Coates within this sector, where small start- Integritas, 7 Zulberg Close, Bruma Lake, 2198 ups exist, that job creation is a very real Tel: Local 08610 SAICA (72422) priority. But it is also within this sector Tel: International +27 11 621 6600 Fax: +27 11 621 3321 where some of the most challenging Email: [email protected] business realities exist. Changing www.accountancysa.org.za regulations, challenges in attracting Editor and retaining qualified staff and issues Raina Julies pertaining to working capital are just Art Director some of what frustrates the practitioner Ashley van der Merwe within this sector. So when government Publications Administrators commits to tax incentives that benefit Angel Lelosa Mpho Netshivhambe this sector, and when access to finance is made easier, the contribution Editorial Intern Nthabiseng Kgoedi SMEs do make and will continue to make towards our country’s GDP and Copy Editor Derrick Robson employment figures should be incentive enough to build stronger relationships Advertising Sales Manager Eleanor Bowden with this important sector. Tel: +27 11 792 3038 Cell: 082 723 3777 Congratulations Email: [email protected] Marina Goodson I’m so excited to announce that Chantyl Website/Special Report Sales Financial Manager, bidorbuy.co.za Mulder, Snr Executive: Professional Katie Bowden Tel: +27 11 792 3038 Development, Transformation and Cell: 071 673 8515 Growth at SAICA, has just won the 2011 Email: [email protected] bidorbuy.co.za Most Influential Women in Business Lifestyle Advertising New Column and Government - Financial Service Christo Coetzee General Sector award. (A CEO magazine Im so excited that Mr. Charles Hattingh Tel: +27 11 455 5500 Cell: 078 576 3293 uses Pastel Evolution. initiative.) is once again penning for ASA. The column titled Fullstop will take you on a Subscriptions Chantyl works tirelessly and creatively critical look at the proffesion. Email: [email protected] “We’ve always been part of the Pastel family and we’ve always been a happy customer. to support the transformation of our Annual Subscription profession. We are very proud of Errata • RSA R358 In our July 2011 issue of ASA, the article • Students/LSM R282 But with over a million online shoppers and thousands of daily transactions, we needed the leadership she has shown to the • Southern Africa R384 that appears on page 28 refers: a software solution that could cater for a larger business with multi-currency and multi- country and we celebrate with her her • Foreign Rates (airmail) R1064 enormous achievement. The dates that refer to the Annual Vat included company requirements. We’ve found a winner in Pastel Evolution!” Financial Statements (AFSs) on page “I am humbled and honored. This is 29 as well as the Audit requirement on all about great teamwork and being page 30 – for financial year ends before Become part of a family that’s been around for passionate about what you do. I or for financial year ends beginning on dedicate this award to all our Thuthuka 30th July 2011, should have stated the students, who one day will be the following date: 30th April 2011. generations. business leaders that other learners and students will look up to.” We apologise to all our readers as well as our author, Rika Butler, for any Congratulations Chantyl, not only for the inconvenience caused by the error. award, but also for the dedication you’ve Published by The South African Institute of Chartered shown to building a sustainable channel Accountants (SAICA). Supplied gratis to Chartered Accountants for young black students to enter the (SA), Associate General Accountants (SA), Associate Accounting Technicians (SA) and trainee accountants. SAICA profession. Raina does not accept responsibility for any opinions expressed by the contributors or correspondents, nor for the accuracy of any information contained in contributions, advertisements or correspondence in this journal. All material submitted for JHB +27 11 304 3530 DBN +27 31 537 7100 CT +27 21 522 7400 consideration is subject to the discretion of the Editor. The Editor reserves the right to edit all material. ISBN : 02587254 SAICA Reg www.pastelevolution.co.za You can now follow ASA on LinkedIn, twitter and the ASA website. No. 020-050-NPO SAICA VAT Reg No. 4570104366 ACCSA_SP_BidorBuy.indd 1 2011/07/29 3:01 PM updates|industry news Transfer Tax on the cession of dividends is withdrawn. Exchange Control • Completion of the dividends tax: As stated in the 2011 Budget Review, the proposed Dividends Tax will be made operational as of 1 April 2012 (via Ministerial notice in the The Financial Surveillance Department of the South African Government Gazette). The Bill accordingly makes the final Reserve Bank has issued the following Exchange Control Circular: adjustments associated with implementation of the new tax. No. 9/2011 – Amendments to the Exchange Control Rulings • Incentives: Government is revising a number of pre-existing tax incentives, namely: Replacement pages of the amended Exchange Control Rulings • venture capital company incentive can be requested from SAICA through our query system on • industrial policy incentive www.saica.co.za. • research and development incentive • film allowance Taxation 4. Income tax: International The following areas are affected: • regional gateway initiatives Tax Administration Bill No 11 of 2011 (TAB) • controlled foreign company (CFC) revisions • offshore cell companies TAB was introduced in Parliament on 23 June 2011 for public comment. 5. Value-added Tax: The TAB is an attempt to simplify, provide greater certainty and better Key areas: coherence in South African tax administrative law. The