GLOSSARY

GLOSSARY

Balance sheet : A snapshot of a business’ financial condition at a specific moment in time, usually at the close of an accounting period. It shows all your assets and liabilities.

BCEA : Basic Conditions of Employment Act.

CA(SA) : Chartered Accountant (South Africa). This is the premier financial, business and accounting qualification in South Africa. Recent research has shown that this qualification is the most recognised and most respected in the business world. A CA(SA) need to comply with stringent qualification criteria, be registered with SAICA, and adhere to continuing professional education requirements.

CC : Closed Corporation. A business entity registered in terms of the Close Corporations Act (Act 69 of 1984).

EMP201 : Monthly return to SARS for PAYE, UIF & SDL.

FICA : Financial Intelligence Centre Act. Legislation introduced in 2001 to combat money-laundering.

Income statement : A summary of your income and expenses for the period under review. This document is the start of understanding the financials of your business.

LRA : Labour Relations Act.

PAYE : Pay As You Earn. Income tax to be deducted monthly from your staffs’ salaries.

SAICA :   South African Institute of Chartered Accountants.

SARS : South African Revenue Services.

SDL : Skills Development Levy. Levy on a company’s payroll, in terms of the Skills Development Levies Act (Act 9 of 1999).

SME : Small & medium enterprises. Generally understood in layman’s terms to be a “small business”.  Also sometimes referred to as SMME – Small, Medium & Micro Enterprises. The definition per the National Small Business Act is “… any entity, whether or not incorporated or registered under any law, consisting mainly of persons carrying on small enterprise concerns in any economic sector, and established for the purpose of promoting the interests of or representing small enterprise concerns, and includes any federation consisting wholly or partly of such association, and any branch of such organisation”.  Depending on the sector in which the business operates, there are different criteria, but generally an SME has less than 200 full-time staff.

UIF : Unemployment Insurance Fund.

VAT : Value added tax. Currently at 14%.