Accounting jobs
in South Africa fit into two distinct categories. The first are
accountants who work for companies and organizations and the second
category is accountants who work for accounting firms and government
agencies. Discussed below are the various duties of an accountant and
the many positions available.
Private Companies and Corporations
Larger companies and corporations will
have book-keepers and accountants who are responsible for specific
duties. In smaller companies, these duties may be combined.
Payroll - Payroll clerks
calculate and issue pay cheques. In doing so, payroll clerks have to
determine gross wages. A salaried employee is given a monthly salary
often with a mid-month advance. The end of month cheque allows for
the advance, calculates income taxes to be withheld, factors in
employee share of benefits such as retirement plans and health plans,
and determines vacation pay. The pay cheque represents the net amount
the employee will receive after all deductions have been factored in.
For hourly employees, payroll clerks
have an extra step. They must calculate the hours worked at their
hourly wage to determine their gross pay for the given period.
AR / AP - A major part of
company accounting is AR / AP - Accounts Receivable / Accounts
Payable. In many organizations these two duties are separate.
Accounts receivable refers to sales and billing. It is the accounting
clerk's job to ensure that sales invoices are recorded, invoices are
sent out and payments received are documented. This is a vital part
to any business - to ensure payment for products and services
received.
AP - Accounts Payable refers to
receiving invoices from companies for products and services received.
It is important to record and document these payables as it is
critical for inventory control which is necessary for controlling
costs.
G/L - General Ledger - The
General Ledger is a listing of every detail and every facet of a
business's activities. It has two parts - the Income Statement and
the Balance Sheet. The Income Statement is a statement of revenues
and expenses during a set period, e.g. the month of March. It
provides information about the profitability of the company.
Reconciling income and expenses provides statement of net income (net
loss).
The Balance Sheet is a listing of
assets and liabilities. Assets refer to property - such as vehicles
and buildings - that the company owns. Liabilities refer to property
that the company owes money on. Reconciling assets against
liabilities provides net value. When net value is compared over
several periods, one can see if the business is gaining (or losing)
in value.
Accounting Firms and Government
Agencies
Accounting firms and government
agencies employ become
an accountant for two main purposes - taxes and
audits.
Tax Preparation - An accounting
firm reviews all business dealings, examines the net income and
determines taxes payable by the company. Companies prefer accounting
firms to prepare their tax returns as it is a specialized field, and
the third party preparation insulates against audits.
Government agencies employ accountants.
Their objective is to review tax returns to ensure the government
receives its appropriate share of taxes owed.
Auditors - Audits are a forensic
review of a company's books. This means that all the entries into the
G/L are examined and the income statement and balance sheet are
correct. Accounting firms are often asked to perform accounting
reviews (a lesser form of audit) as a regular procedure or if there
seems to be some irregularity in reporting.
There is great variety between the
various Accounting
jobs in South Africa.
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