A Practical Guide for Business Owners #
Prepared by: Zingisa Business Services (Pty) Ltd
Length: ±5 pages
PAGE 1 – INTRODUCTION #
Annual Financial Statements (AFS) are often viewed as a compliance burden. However, when properly prepared and understood, they provide valuable insight into a business’s financial position.
This guide explains:
- What AFS are
- Why they are required
- What information they contain
- How business owners should use them
PAGE 2 – WHAT ARE ANNUAL FINANCIAL STATEMENTS? #
Annual Financial Statements are a formal record of a business’s financial performance and position for a financial year.
They typically include:
- Statement of Financial Position (Balance Sheet)
- Statement of Comprehensive Income
- Statement of Cash Flows
- Notes to the financial statements
AFS are prepared in accordance with applicable accounting standards and regulatory requirements.
PAGE 3 – WHY AFS MATTER #
Annual Financial Statements are required for:
- Statutory compliance
- Tax submissions
- Banks and funders
- Investors and shareholders
Beyond compliance, they provide:
- Insight into financial health
- Benchmarking year-on-year performance
- Evidence of governance and control
PAGE 4 – COMMON MISCONCEPTIONS #
Misconceptions include:
- “AFS are only for SARS”
- “They don’t help with running the business”
- “They are purely historical”
In reality, AFS provide a financial foundation that supports credibility, funding applications, and long-term planning.
PAGE 5 – HOW ZINGISA ADDS VALUE #
Zingisa ensures that:
- Financial statements are accurate and compliant
- Risks and issues are identified early
- Business owners understand the numbers
- AFS align with management reporting
Our approach bridges compliance with strategic insight.
CONCLUSION #
Annual Financial Statements should not be viewed in isolation but as part of a broader financial reporting framework.
Speak to Zingisa Business Services to ensure your AFS support both compliance and strategic clarity.
