Why
do I need an Accounting Officer?
Firstly every Close Corporation is deemed by law to
appoint a recognized Accounting Officer by the Close Corporation Act of 1985.
The Accounting Officer will assist you to meet the Accounting Requirements of
the CC.
The
role of an Accounting Officer is explained below:
1. The Accounting Officer will determine
whether the annual financial statements are in agreement with the accounting
records.
2. The Accounting Officer will report to the
members of the CC regarding the financial statements of the close corporation.
3. Determine whether the appropriateness
of the accounting policies are applied in the preparation of the financial
statements and, if necessary, to revise the statements.
4. An Accounting Officer cannot perform the duties of an Auditor which will apply to a company..
5. An
employee or a member of the Close Corporation can be appointed as the
Accounting Officer, but this fact must be stated in the financial statements.
N.B. If you do not have an accounting officer, our
online CC registration service will be able to assist in appointing an
accounting officer. This will speed up the registration process, remember that
you can your Accounting Officer at any time change.
Tips: It is important to note that if the accounting officer of the CC resigns, then the CC must appoint a new Accounting Officer within twenty eight days. If the position is left vacant for a period of six months or longer then the members of the CC will become jointly liable for all debts of the CC.
Conclusion
The Accounting Officer of the Close Corporation plays a vital and necessary part of the CC. The financial statements and reporting need to be completed on time and in a reasonable manner. The information represented by the financial statements can be analyzed and used in future planning and budgeting.
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