Investment Of Reserves Policy
Having been committed, for more than 25 years, to assisting non-profit organisations in their quest to become more financially healthy and sustainable, Ziyo has previously stressed the importance of a reserves policy. Such a policy frames the strategic financial objective of building reserves which can both protect NPO’s from temporary cash flow crises and provide […]
Fixed assets of a non-profit entity – an accounting perspective
Fixed assets of a non-profit entity – an accounting perspective“PPE” stands for property, plant, and equipment (not, in this case, for the acronym of the pandemic for Personal Protective Equipment). As we reflected on challenges that have arisen in preparing or reviewing annual financial statements of non-profit entities in recent months, we realised that the […]
Transitioning to cloud accounting
In 2019, we wrote about the rise in popularity and the advantages of cloud accounting, and now in 2020, due to the global pandemic increasing the need for remote working, cloud accounting has become the norm, and even essential. In our article last year, we considered the many advantages that the cloud-based accounting systems, such […]
Is spending money cheaper than getting something for free?
The lure of a freebie can be breathtakingly attractive when an organisation is struggling to find the necessary finance for its work. But is acceptance of donations of goods or services always the best way to go? This is the issue that today’s newsletter will address, based on some of the situations we have seen […]
Now is the time for good cash flow management and projections
Now is the time for good cash flow management and projections As is our habit, we have been thinking about current financial management issues for non-profit organisations. We believe that cashflow planning and projection is going to be particularly critical for surviving the months ahead. The pandemic is affecting different types of organisation in different […]
Is PBO approval important for South African non-profits?
Is PBO approval important for South African non-profits? Over the years of consulting in the non-profit sector, we have frequently encountered organisations which have never applied for PBO approval or income tax exemption with SARS. The reasons provided for not having done so are often based on false beliefs such as: All non-profits are automatically […]
New CIPC Compliance for Non-Profit Companies in 2020
From 1 January 2020, the Companies and Intellectual Property Commission (“CIPC”) will make it mandatory for companies, before submitting their annual returns, to complete a compliance questionnaire. This will intensify the CIPC’s compliance enforcement as the questionnaire will be used to assess areas of non-compliance with the Companies Act (“the Act”). The CIPC will then […]
Light bulb moment #5: Presentation of Annual Financial Statements
When you prepare your annual financial statements, do you: A) Go for the “bare minimum” option; or B) Look for a presentation that will give your stakeholders and your potential funders a clear and easily understood picture of your financial health? In answering A, we are sure that you are looking to minimise costs whilst […]
Light bulb moment #4: Financial accountability in a paperless society.
In the face of paper files swamping Ziyo, and client documents competing for space in our fireproof safe, as well as the advantages for our clients, we decided to embrace the prospect of a paperless environment wholeheartedly. Traditional business methods involved suppliers sending or delivering original paper invoices and statements. Contracts were also in the […]
Light bulb moment #3: SARS returns and penalties – serious business!!
SARS returns and penalties – serious business!! Why must a public benefit organisation (“PBO”) approved for income tax exemption submit an annual income tax return (IT12EI) if it has no tax liability? The SARS response to this question is that “[t]he income tax return enables the Commissioner to assess whether the organisation approved as a […]