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What is the role of the modern day finance manager?

Since most managerial decisions are measured in financial terms, the modern day finance manager plays a key role within the company.  The role is a strategic one and should not be confused with accounting and book keeping functions. A finance manager role should primarily be focussed on just that, management.

Today, external factors have an increasing impact on the financial manager. Heightened corporate competition, technological change, volatility in inflation and interest rates, worldwide economic uncertainty, fluctuating exchange rates, tax law changes and ethical concerns must be dealt with on a daily basis. As a result, the finance manager is required to play an ever more strategic role within the organisation. The finance manager has emerged as a team player in the overall effort of a company to create value. The “old ways of doing things” simply are not good enough in a world where old ways quickly become obsolete. Today’s financial manager must have the flexibility to adapt to the changing external environment if his or her company is to survive.

Understanding the differences between financial management and the other accounting activities within the organisation is key to understanding the role of the modern day finance manager.

The role of the finance manager

The first objective of the accounting activity is to deliver information necessary for the measurement of the company’s performance. Using some generally accepted and regulated standards and principles, the accountants prepare the financial statements that establish the profit based only on the registered sales and expenses. On the other hand, the financial manager focuses on the actual entries and issues of cash flow that are related to such income and expenses. He/she keeps the company solvent by analysing and planning the cash flows necessary for paying the obligations and purchasing the assets needed by the company to reach its financial objectives. If the individuals involved in the accounting activities focus on collecting information and presenting the financial statements, the financial manager evaluates the situations elaborated by the accounting activity, creates additional information and takes decisions based on subsequent analyses. The purpose of the financial activity is to provide correct and easily interpretable information about the company’s past, present and future operations. The financial manager uses this information, either in its basic form, or after certain processing and analyses, as important entries in the decision making process.

Reporting

A good finance manager should produce financial reports that show the organisation’s financial position, operating performance and cash flow over a period of time through the use of meaningful financial statements. He / She should create management reports on a regular basis that are relevant to decision making processes, measuring performance against measures and targets (output and outcomes) established during finance management planning, against budget objectives, and/or against financial management performance standards used within an industry.

Need an experienced finance manager but your budget or scope of work is limited?

Many companies are in need of an experienced finance manager to help guide them but can’t afford to engage with them on a full time basis or the scope of work simply does not justify employing a finance manager on a full time basis. There are companies that offer solutions to both of these challenges by outsourcing exceptional finance managers on a part time or interim basis.

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May 17, 2022 / No Comments /  

Best Ways to Avoid Common Cash Flow Problems

Article by www.succeedasyourownboss.com

We’ve all heard it a million times “Cash is KING!” But proper financial management is the difference between surviving in business and being put out of business. You must understand the time value of money and manage your finances carefully. Just like you should have an emergency fund for your household, you need one for your business too. Everyone thinks they can pay a small business late, so at times you may find yourself at the mercy of your customers. You must exercise caution with your financial decisions. Don’t spend money and certainly don’t borrow money unless you absolutely need to, and know when you can pay it back and how you will turn it into more money.

Every business needs a financial structure that generates a profit to stay credible.  Equip yourself with good money management skills so you can turn your business into a profitable success story.  Here are the best ways to avoid cash flow problems in 2019.

7 Ways to Avoid Cash Flow Problems

Know Your Numbers Monthly

Review your financial statements by the 15th of every month. If you don’t know how to interpret your financials, leverage your accountant as a business advisor to teach you. By learning how to read your cash flow statement, balance sheet and the P&L or profit and loss statement, you’ll understand how well your business is doing. You need up-to-date financial information to make financial decisions. These statements tell you about how your money is working in your business.

The cash flow statement analyzes sources and uses of cash for operating activities, investments, payables, and receivables. The cash flow statement is always calculated based on a cash basis or cash in hand. The balance sheet looks at the business for a moment in time. It provides information related to the company’s assets, liabilities, and equity. Think of it like assets are an engine that drives the business, and liabilities and equity are engine fuel. The income statement reflects revenues, expenses, and profits over a specific period of time, such as a month or quarter. The P&L or income statement is always calculated on an accrual basis, which is when the order is placed or shipped, not when cash is received.

Keep Your Personal and Business Finances Separate

One important key to avoiding cash flow problems is to always keep your personal and business finances separate. I’m a big fan of even having separate banks for your business and personal finances. Secure a business credit card and put all related expenses on it. This should help you track your spending and keep records organized.

You will also do well in opening a money market account dedicated to your business, wherein you can transfer a certain amount of money from each payment that you receive and gradually build the emergency funds mentioned earlier.

Develop an Annual Business Budget

You should not spend any money in your business that you haven’t budgeted to spend. Payroll, inventory, shipping, conferences, software, professional development/coaching, and equipment are all things that you should include in your annual budget.

Watch Your Costs

Every business endures two types of costs – fixed and variable. While fixed costs are monthly recurring costs whether your business is making money or not, you have options when it comes to variable costs. To avoid cash flow problems, ask yourself WHY three times, before making significant purchases. And when you do spend money, it should be to increase productivity or improve your customer experience. Look for cloud-based software with free trials to make sure it’s going to solve your problem. Secure a free conference call line and use video conferences instead of traveling for a meeting. Leverage a home office or co-working space. Try bartering services with other professionals to cut costs. Be smart with how you leverage your resources.

Know the Procedures to Get Paid

Before you start work for anyone, know how and when you will get paid up front. Make sure you have a purchase order in hand or a signed contract. Do not ever take someone’s word as a contract. Push for electronic payments to get your money faster. Start collections on Day 31 if you have not received payment. Don’t ever be afraid to call someone to inquire about your payment status.

Measure Financial Performance

As a business owner, you must monitor the movement of your money in your business, so you are aware of potential cash flow problems. You need to keep track of ratios such as your Accounts Receivables Turn Over Ratio, or how long it takes you to get paid from your invoices. Start each year with a budget and when you look at your company’s financial statements, compare it to your budget and past performance in terms of revenue, expenses and cash flow.

Hire Professional Help

If you are not an accountant, hire one to help you. Don’t just call them at tax time—engage their services monthly as an advisor to your business. They can help you analyze your data, track your profit margins, and determine where your business is, going. Make sure you sign your own checks but get financial advice.

Whether it is tax planning or budgeting, hiring a professional accountant can go a long way in educating yourself about the numbers in your business. Don’t let your business suffer due to common cash flow problems. Keep the above tips in mind, stay on top of your financial statements and give your business a chance to prosper.

Article by www.succeedasyourownboss.com

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April 27, 2022 / No Comments /  

Tito Mboweni Caught Between A Rock And Many Hard Places

THE BREVITY of Finance Minister Tito Mboweni’s Wednesday supplementary budget speech gives insight into the amount of fiscal wiggle room he currently has at his disposal: very, very little.

The national debt to the GDP ratio has risen by over 15 percentage points since the last estimate, from 65.6% to 81.8%; South Africa’s unemployment rate tipped 30% in the first three months of the year; tax collection is disastrously low; and the Gross Domestic Product is expected to contract by 7.2% this year.

That constitutes the largest contraction in almost 90 years, and it could be significantly greater, depending on the effects of Covid-19.

It’s safe to say that Mboweni is between a rock and many, many hard places.

THE DEBT AND TAX CRISES

Gross tax revenue collected during the first two months of 2020/21 was R142-billion, compared to treasury’s initial forecast of R177.3-billion.

As a consequence, gross tax revenue for the current fiscal year is revised down from R1.43-trillion to R1.12-trillion.

“That means that we expect to miss our tax target for this year by over R300-billion,” said Mboweni.

Thanks to these low collection figures, extra government spending around COVID-19, and a massive economic slowdown, South Africa’s debt level has seen a steep, unexpected increase.

Current forecasts are that it will reach close to R4-trillion this year, or 81.8% of our GDP.

“Debt is our weakness,” said the minister in his speech.

“We have accumulated far too much debt; this downturn will add more. This year, out of every rand that we pay in tax, 21 cents goes to paying the interest on our past debts. This indebtedness condemns us to ever higher interest rates.”

While acknowledging the current debt hole, Mboweni said that the government would need to borrow more in order to stay functional.

“Without external support, these borrowings will almost entirely consume all of our annual domestic saving, leaving no scope for investment or borrowing by anyone else,” said Mboweni.

“For this reason, we need to access new sources of funding. Government intends to borrow about US$7-billion from international finance institutions to support the pandemic response. We must make no mistake, these are still borrowings. They are not a source of revenue. They must be paid back.”

However, he did not give any updates on the roughly R4-billion loan that he previously indicated was up for grabs by the International Monetary Fund loan, or the funding that the country planned to apply for from the World Bank.

In addition, we don’t know many details about the US$-1billion loan that has been approved by the New Development Bank (formerly known as the BRICS bank).

The government has come under fire from the likes of the Economic Freedom Fighters (EFF) for considering such funding.

“The IMF and World Bank loans come with restrictive conditions, which will deprive South Africa of its fiscal and monetary policy in the future,” said the EFF in an April statement.

However, many analysts have said that the country has little choice other than to accept the funding on offer.

COVID-19 SPENDING

While trying desperately to shore up debts, the government has had no choice but to spend significant amounts of money dealing with the health, social and economic implications of the COVID-19 virus.

The supplementary budget puts aside R21.5-billion for COVID-related spending on things such as hospital beds and testing; an additional R25.5-billion for a Special Relief of Distress grant for the poor; and R23-billion has already been paid out by the Unemployment Insurance Fund (UIF) to employees affected by COVID-related company closures.

R19.6-billion will be added to the existing R6-billion put aside this year for the Presidential Youth Employment Intervention, rolled out earlier this year.

The Economic Support Package sets aside R100-billion “for a multi-year, comprehensive response to our jobs emergency,” said the minister.

In addition, R200-billion has been set aside for the COVID-19 loan guarantees scheme.

Overall, the government’s COVID-19 fiscal package identifies R500-billion in economic relief, “one of the largest economic response packages in the developing world”, said the minister.

The budget details say this includes R190 billion in main budget spending – of which R145 billion is allocated immediately – to protect lives and support livelihoods, R70 billion in tax policy measures and a R200 billion loan guarantee scheme to support short-term economic activity.

“In addition, the Reserve Bank has reduced interest rates and provided additional support to the bond market, financial-sector regulations have been eased to support the flow of credit to households and businesses, and commercial banks have introduced temporary payment holidays,” reads the detail.

SOUTH AFRICAN PUBLIC REMAINS HUNGRY FOR DETAILS

February’s 2020 budget speech faced an already very tough economic climate, and yet did well to address many of the hot potatoes faced by the Treasury at the time.

Whilst it must be conceded that the economic circumstances have spiralled significantly since then, it’s difficult not to compare how comparatively little this supplementary speech did to address many of the bugbears of the electorate.

The annual budget speech made bold assertions around slashing the public wage bill by R160.2-billion over the next three years, but this topic was almost a non-item on Wednesday’s agenda. Mboweni hinted at the political deadlock the government faces with the unions, and said that labour minister Zenzo Mchunu is negotiating with labour partners to find a balanced solution that sets compensation at an appropriate, affordable and fair level. “We wish him well,” said Mboweni; the simplicity of the statement belying the enormous complexity of the task.

With Eskom hinting earlier this week that load-shedding could be back on the cards, and the current restructuring of the power utility lumbering under R43-billion in debt, South Africans were looking forward to more details about expenditure here, but received little. “Provisional allocations to Eskom were made on the understanding that Government’s Electricity Roadmap would be implemented. Progress is slow,” said the Minister.

“Eskom will need to show progress in meeting the milestones as laid down in the Roadmap. This is non‐negotiable.”

The ongoing question about South African Airways continues to hang in the air as well. In fact, there was very little mention of state-owned entities overall, other than an announcement that the government would be allocating R3-billion to recapitalise the Land Bank.

“This Bank holds 29% of South Africa’s agricultural debt,” said the Minister. “The National Treasury is supporting the Land Bank find a solution to its default and craft a long‐term restructuring plan.”

One arguably bold undertaking was made by the minister, likely in an effort to appease ratings agencies and foreign investors.

The minister stated that the government undertakes to stabilise the debt to GDP ratio at 87.4% by 2023/24.

When the South African debt-to-GDP ratio hovered around 60%, analysts highlighted that the main issue was not that South Africa’s debt to GDP ratio was unacceptably high – being comparable with some other emerging markets – but that there was no demonstrable pathway to drive down the debt over the medium term.

The minister’s announcement curtailed some analysts’ speculations that it could continue to rise every year over the decade.

Investec’s chief economist Annabel Bishop said, however, that this would not be enough to put the country into positive ratings territory.

“While South Africa projecting a peaking, and hence stabilisation of debt is positive, it will not be enough to avoid South Africa being pushed into the single B credit rating categories over the course of the next few years, with 87.4% still a huge figure for an emerging market’s government debt, and one which does not tally with debt sustainability.”

AN OMEN OF THINGS TO COME?

The minister did not mince his words in spelling out the ominousness of South Africa’s current situation. In particular, he warned about the devastating effect of a sovereign debt crisis.

“The results are devastating,” said the minister.

“We are still some way from that. But if we do not act now, we will shortly get there.”

Mboweni said that, in order to avoid this, the Medium-Term Expenditure Framework process will be guided by the principles of zero‐based budgeting.

“This means that we will try to reduce all expenditure that we thought we can no longer afford,” he said.

“After all, we are not as rich as we were ten years ago.”

His words may be an effort to prepare the public for some very tough news in the budgets to follow.

Yolandi Esterhuizen, tax practitioner and Compliance Manager at Sage Africa & Middle East, said that tax increases are likely to follow.

These would have been complex to implement in the middle of a tax year, she said, so “it’s not surprising that we did not hear anything today for that reason. However, tax increases are necessary to stabilise debt, and we are likely to see an increase in personal income taxes announced in the February 2021 budget speech.”

CRITICS CLIMB IN

Political opponents have been highly critical of Mboweni’s speech.

The Democratic Alliance’s federal leader John Steenhuisen tweeted that it was a “speech that could have been a WhatsApp.”

Founder of The People’s Dialogue Herman Mashaba said that it was “an insult to the South African people, who are enduring the hardships of declining household income.”

In Mashaba’s opinion, the Minister’s greatest failure “lies in the unwillingness to make the necessary budget cuts within government to reduce the need for international loans and allow for real measures to stimulate our economy.”

Mashaba said that in his former role of mayor of Johannesburg, “we were able to cut-back on non-essential expenditure to the tune of R2 billion. These funds were re-directed towards infrastructure and pro-poor priorities. If this can be done in Johannesburg, it can be done nationally with vastly larger sums being freed up.”

(Compiled by Inside Politics staff)

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April 26, 2022 / No Comments /  

TFT – Women In Waders 2019 – Interview with Grant Robson

Interview with Grant Robson of The Finance Team.

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Q: Grant. You’re an absolute legend for sponsoring an all-women’s team for one of the toughest still water fly-fishing festivals in SA, what inspired your decision to do so?

A: I have been a fisherman for as long as I can remember but only started fly fishing at the age of 28 which is just over 20 years ago. It was my girlfriend at the time who actually introduced me to Fly Fishing at Millstream. She was an accomplished fly fisher in her own right. Back then it was not that common to see woman fishing / fly fishing but that has certainly changed over the past 20 years. I still think a lot can and should be done to encourage and develop woman in this fantastic sport. Of all the different facets of fishing, fly fishing is probably the best suited to woman for a number of reasons. I would not be surprised if a woman was to become the overall world champion in years to come. Fishing is a fantastic sport that the whole family can participate in. The bonds that I have seen forged between fathers and children through fly fishing has been a joy to behold and I think its high time that mothers get in on the act. There is no better way to spend quality time with your children than on some beautiful lake or stream surrounded by scenery that takes your breath away.

While the Corporate Challenge is very competitive, we feel that the WIW team is equally competitive and as competent as any of their male counterparts and we are confident that they will make the finals of this prestigious event and hopefully place in the top 10. We hope that this team of ladies goes on to inspire a new generation of female fly fishers. For us, this was enough inspiration to sponsor WIW at this year’s Corporate Challenge and hopefully many more to come.

Q: I understand you fish yourself & your team did an (expected) impressive job of placing in your leg of the Tops Corporate Challenge last year. Where did the love for fishing begin with you?

A:  As mentioned above I have been in love with fishing generally for as long as I can remember. I fondly remember a 3 week Christmas holiday at the Clansthal caravan park on the south coast when I was 5, where I literally spent 12 hours a day on the rocks with my newly acquired Christmas present catching small fish and just absolutely loving life. I had to be dragged off those rocks every evening and was back on them the next day at first light. I still get those feelings today as I head out in the early morning and feel the adrenalin surging through my veins and hearing my heart beat thumping in my ears in the quiet of the early morning. It’s something that is difficult to explain to somebody who has no interest in fishing or has yet to feel the rush of that moment when a fish hits your fly. Priceless!!

Looking back further than that, I would say that I probably got the fishing bug from my Mother. At 79 she still takes every opportunity she can to watch me fish from the banks or on the boat and jumps at the chance to retrieve a fly that I have cast for her. She recently landed 7 beautiful rainbows from a lake at Trout Hideaway near Lydenburg. I have no doubt that given the opportunity to go back and do it all again she would have made a fantastic angler but things were different back then.

Q: We’re excited to add a little colour to our gear this year in the form of the TFT logo. Why the blue, pink & green?

A: Great Question. The simple answer is that we just wanted something that was a bit different that stood out from the pack. As a consultancy mainly consisting of Chartered Accountants I think most people were expecting a dull, boring, black and white, “professional” looking logo. We wanted colours that really stood out and grabbed ones attention.

Q: Can you tell us a little (a lot) more about what it is you do. What can The Finance Team do for us?

A: The Finance Team is a professional consultancy that specialises in the provision of part time and interim financial managers and CFO’s. We exclusively retain the services of highly trained and experienced individuals and supply these critical skills to clients that don’t want, need or can’t afford a similar resource on a full time basis. Our clients include SME’s that lack the above mentioned skills as well as larger listed companies that require these skills on an interim basis to complete ad hoc projects and to “hold the fort” during times of temporary absence. Our Associates all have no less than 15 years’ experience and are hand-picked by us to represent our brand and deliver the level of service our clients demand. The majority of our Associates are semi-retired individuals and individuals that are not primary bread winners that have made certain lifestyle choices that merge well with the unique solution that we provide.

Q: You are frequently travelling for work, but where is TFT situated and how can people best get a hold of you?

A: Our Head Office is in Bryanston (Johannesburg) but we also have offices in Durban (Umhlanga) and Cape Town (V+A Waterfront). We have a team of 35 Associates at present with the largest team obviously based in Johannesburg. I can be contacted directly on grant@thefinanceteam.co.za or you can obtain more information from our website at thefinanceteam.co.za.

Q: How many years have you been in the biz (business)? And what do you feel has been your greatest working achievement?

A: Richard (My Business Partner) and I are both qualified Chartered Accountants and we have both been in this industry for 10 years. We started The Finance Team in 2013 and are in our 7th year of business as The Finance Team. I don’t think that either of us can pin point one specific achievement to date but I think I speak for both of us when I say that the one thing that we love about what we do is making such a big difference to the clients that we get involved with. Most Entrepreneurs are brilliant at conceptualising, strategizing and selling but fall short when it comes to the administration, financial control and details that comes with running a successful company. This is where we step in. We put the financial science behind the Entrepreneurs’ gut feel and support the business while he / she gets on with what they are good at.

Q: Give us the 411 on the year TFT won the TCC. We have pretty big shoes to fill 😉

A: The Finance Team has entered a team in the Tops Corporate Challenge since 2014 so this will be our 6th event. What makes this one special is that this year it is an all-female team which we are just thrilled about. We have made the finals in all 5 previous events and have placed 1st, 3rd, 5th, 7th and 9th in previous tournaments. NO PRESSURE LADIES. We actually won the event on the very first attempt which was a massive surprise for all involved including the organisers from Wild Fly. To be honest we were lucky enough to have Wayne Stegen in our final team that year as one of our team members could not make the final. Wayne was instrumental in our win and his knowledge and experience of the local waters was a game changer for our team who were fishing the area for the first time. For those who don’t know this, Wayne’s Wife (Roxy) and Sister (Bridgitte) are 2 of the members of this WIW / TFT team. I hope that Wayne has been giving some pointers and tying some expert flies for the tournament.

Q: So, not only are you not fishing this year but you are also making a come-back as our ghillie 😉. Are you ready for the job?

A: Absolutely ready for the job. I am actually looking forward to taking a back seat this year and helping wherever I can. Hopefully get some more time to enjoy a few more beers in the pub without having to worry about getting up at 5AM in the Notties Winter. We are planning on bringing a drone, GoPro’s and Cameras so that we can document the whole event so that we can release a short video clip on social media on our return. Watch this space.

Q: What’s next for TFT in the fly-fishing world?

A: Well the hope is that our ladies team make it into the final of the tournament and then make it into the top 10 overall. I think this would be a fantastic achievement. We are looking forward to this year’s event and a long association with the WIW team into the future.

We cannot wait to for the 6th of June, see you there and thank you once again for everything you have done for team WIW. We will do our best to make you proud!

 

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April 18, 2022 / No Comments /  

Raising Debt Finance To Survive The Storm

April 12, 2022 / No Comments /  

10 Basic Principles for Business Success

Article by www.thesmallbusinesssite.co.za

Building a business is only half of the equation. Making your business a success is just as important. Dr John Demartini, human behaviour expert and founder of The Demartini Institue, gives advice on ten essential principles that will ensure your business is successful.

1. Find a need in the marketplace

Find out what the world needs. What services? What problems? What needs the world has? If you don’t fill a need, there’s no business.

When I was nine years old, I asked my father if I could earn some money and he told me that he didn’t need anything done, so if I wanted to make money I had to go and ask the neighbours. So I went to the neighbours and asked them what needs they had, what problems I could solve for them. I provided a gardening service for many of them, and as a result of that, by asking and being willing to do a service, I was able to earn extra money.

So the first principle of business success is identifying the needs of the society and then directly or indirectly filling those needs. In other words – either you offer a service, your skills or a product that will fill a need, or you become a broker to somebody else who is capable of producing the product and service to fill the need. But whatever it is, it is necessary to find a need that needs to be filled.

2. Find what you love to do

Ideally, you want to find what inspires you and do what you love to do most, in addition to filling people’s needs. So if you can identify what the needs are and then find the ones you are inspired to fill, you have two components: a need from society and a desire inside you to fill it. Those two components are very empowering. When you can’t wait to get up in the morning and bring a service to people, people can’t wait to get that service.

3. Identify the highest priority actions

Prioritise the actions that it takes to fulfil those needs and identify what the highest priority actions are that will help you fulfil those needs most. Make sure that you are working on top priority actions and delegating the low priority actions. If you are doing things that are most important and you are doing them with inspiration, you are going to increase your business.

4. Delegate low priority

Make sure that you are enrolling and hiring people to do the things that you are not keen or inspired to do, but need to be done.

By delegating, you are basically enrolling other people to assist you and you are extracting surplus labour value out of their services while freeing yourself to do what you do best, that which you find most inspiring – your highest of the priorities.

5. Structure your business to maximise profits

You want to reduce redundancies, make sure you are not doing things that are superfluous. Make sure you are doing the most important actions most effectively and efficiently.

6. Build liquidity

When you have a cushion of liquidity, you automatically have more stability in the business. You have better quality clients, you will end up attracting more opportunities and you won’t be desperate. You’ll be inspired to select only quality clients.

7. Invest your money

Make sure your money is working for you and you are not working all your life for your money. After saving your stability cushions be sure to invest in progressively higher levels of risk and return. Earn the right to risk.

8. Communicate the product and share the need of employees and clients

When you are inspiring teams, make sure you are communicating to them using their highest values.

Remember, their individual highest values are what they are inspired to do. Nobody goes to work for the sake of work; they go to work to fulfil their highest values. If you communicate the company’s vision and clearly specify the work that needs to be done in terms of peoples’ highest values, they will be inspired by what they do and will produce more.

Also, make sure you are communicating effectively when it comes to sales, advertising and marketing. You need to take your clients’ highest values and needs into account. Not only do you need to discover what those are, but you constantly need to keep at the forefront of what they are, as they change, and keep getting feedback from your customers to assist you in filling their needs. Make sure that you are honouring their needs and get feedback regularly for those needs – don’t live on assumptions.

9. Expand your vision

You’ll only grow to the level of your vision and if you are not expanding your vision, you’ll plateau your business and you’ll plateau your wealth.

10. Innovate and research

Keep your eyes open for new customer opportunities and new ways of presenting products or services for those opportunities. You need to put energy into innovation and research. When you are constantly at the cutting edge, in the frontiers of research and innovation, you tend to draw more opportunities to you and lead the way.

Article by www.thesmallbusinesssite.co.za

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April 8, 2022 / No Comments /  1

How a CFO can help you set realistic goals for the year

“If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.” – Henry David Thoreau in Walden

After the summer break, a quote about building castles seems apt. Many of us were on the beach, building sand castles. Others retreated to our own homes; our so-called personal castles.

But the castles mentioned in Thoreau’s book Walden are neither of these. Instead, he’s referring to our goals, our ideals and aspirations. The start of a new year is a fitting time to think about those kinds of castles as well. We’re rejuvenated and motivated to set our sights on something higher. The challenge we face with this new year is to set goals for our businesses that stretch us but are realistic at the same time. In other words, we need to build castles under which our business can place solid foundations.

A part-time CFO can help you find the balance you’re seeking for. Your CFO can help you set appropriate, realistic goals in the following ways:

  • Help you know your starting point. If your goal is to become a proficient long-distance swimmer, you need to know how far you can swim to begin with. Similarly, the more you know about your company’s current performance, the more accurate goals you can set for future performance. Your CFO should give you clarity and insight into where you are now, so that you know where you can realistically aim for.
  • Help you set specific goals. “If your goal is to “lose weight” – how will you know when you’re done?” says motivational speaker Sid Savara. “Even if your long term goal is ‘get in better shape’ – you can still be specific such as ‘be in good enough shape to play football for two hours twice a week.’

“The more specific you are, the better motivated you’ll be as you get closer to achieving your goal.” The same holds for motivating your employees. Instead of setting a goal to “increase sales” your goal should be to “sell 25 units every month for the next three months”, for example. Your CFO will help you identify what an appropriate specific goal is. A well-thought out figure will give the entire workforce something to work toward, and you as a leader something specific to motivate towards.

  • Help you work out an appropriate time frame. Several motivational speakers talk about setting “SMART” goals. The T in this acronym refers to “timely”. “Your goal should be grounded within a time frame. With no time frame tied to it there’s no sense of urgency,” says a writer for Topachievement.com, a self-improvement and personal development community. “If you want to lose ten kilograms, when do you want to lose it by? ‘Someday’ won’t work. But if you anchor it within a timeframe, ‘by May 1st’, then you’ve set your unconscious mind into motion to begin working on the goal.” Your CFO will help you determine the right time frame for your business goals. He’ll take into account environmental factors and trends in order to do so. Should you aim to double your revenue by mid-year? That would depend not only on your sales drive but consumer confidence and the strength of the economy. Let your CFO guide you in setting time frames that stretch rather than discourage you.

Overall, your CFO can help you decide on goals that can foreseeably be met. “Your goal is probably realistic if you truly believe that it can be accomplished,” says Topachievement.com. “Additional ways to know if your goal is realistic is to determine if you have accomplished anything similar in the past or ask yourself what conditions would have to exist to accomplish this goal.” If you’re looking for trustworthy, high-level financial assistance in setting your goals, contact The Finance Team. A part-time CFO from our team can provide this to your company for the period of time that you need it.

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March 17, 2022 / No Comments /  1

What’s The Worst That Can Happen With A Disgruntled Silent Shareholder?

Article by www.entrepreneurmag.co.za

While we often hear that it can be bad to have a silent shareholder that does not want to play ball, it is not often that we make enquiries about how the governance of a company can be hindered by a disgruntled shareholder.

Most of us assume that as long as they own more than 50% of their own company, they are entirely in control of all aspects of the company and how it is governed. This is not true: Even if you are a majority shareholder, holding less than 75% of all the shares in your company can still result in headaches if a minority shareholder, holding at least 25% of the company, becomes disgruntled and neither participates in the decisions of the company, nor consents to the decisions being made.

What is set out below highlights, among others, why it is so important to give shares in a company to prospective shareholders over a period of time, rather than from the outset. This allows for shareholders to prove their worth without you potentially placing your company in a position where it could be held at ransom for many years.

The illusion of holding more than 50% of the shareholding in a company

  • Many people assume that by holding more than 50% of the shares in a company they are free to do with the business as they please. This generally only holds true for basic decisions of the shareholders, such as the removal and appointment of directors. The most important decisions of a company are based on special resolutions. A special resolution requires that shareholders, either individually or collectively, holding at least 75% of all the shares in a company, vote in favour of a specific decision.
  • Examples of decisions that require a special resolution include:
    • Amending a company’s Memorandum of Incorporation
    • Approving the issuing of shares or granting of other similar rights
    • Authorising the basis for determining directors’ salaries
    • Disposing of company assets
    • Mergers and acquisitions.

So, what does this mean for you and your company?

  • If you are a start-up looking to raise funds, apart from some exceptions, you will not be able to issue further shares to new shareholders or anyone other than existing shareholders if there is a shareholder that is effectively dead weight.
  • Should you manage to vote a new director to the board, you will not be able to determine the basis on which they are compensated (their salary) without a special resolution.
  • If you intend to merge with another company, you will not be able to pursue this without a special resolution.
  • If you plan to raise money by disposing of or selling most of the assets of your company you will, once again, be prevented from doing so.

Accordingly, it is always best when starting a venture to vest your shares over a period of time. This means that, for example, shareholders are only entitled to have their shares allocated to them after a certain period of time to avoid a situation where you have a dead-weight equity shareholder hindering the governing of your company, and requiring possible litigation to remove them.

Article by www.entrepreneurmag.co.za

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March 8, 2022 / No Comments /  

The Woman in Waders Make Waves

The Women in Waders is an all-female fly-fishing team who is set to make history this month by becoming the first ever female team to compete in the annual TOPS Corporate Trophy Challenge…

2019 has seen South Africa’s women breaking boundaries left, right and centre – from female pilots to DJs to seats of power in government to our national athletes.

Women are breaking into spaces and industries that were previously considered ‘boy’s clubs’ and this is just the beginning! The latest all-female troupe to break the mold in Mzansi is the Women in Waders. The fly-fishing quartet is sponsored by The Finance Team and the four incredible women who make up the team are ready to make waves (literally and figuratively!) at this year’s TOPS Corporate Trophy Challenge.

First all-women team to compete

The Challenge is entering its 18th year but 2019 will be the first time that a team made up entirely of women will compete in the finals which take place at the Wildfly Waters in the KZN Midlands. Even more fitting, the Women in Waders will be competing at the closing event which takes place on the last weekend of Women’s Month where they will be hoping to bring the trophy home.

They won’t have to travel too far – all four fisherwomen hail from KZN and the team’s captain, Roxanne Stegen, will be keen to make use of their homeground advantage. Revealing their tactics for the finals, Roxanne said, “At the finals, I’ll be more strategic around dam allocation. As opposed to the first leg of the competition which we left to lady luck, I will allocate dams based on knowledge and fishing style preference of each team member. Good knowledge of all the waters in the area is a unique challenge in its own right”.

Making history

The Finance Team also beamed with pride at the prospect of an all-female team making history at this year’s Corporate Trophy Challenge. Their director, Grant Robson, said “The TOPS @ Spar Corporate Trophy Challenge is arguably the most prestigious freshwater fly fishing festival held in South Africa and it has been dominated by male competitors since its inception.” He added, “We are so proud of our team for securing their place in the finals and we back them all the way,”.

We’ll be keeping up with the Women in Waders as they make history from the 22nd of August to the 25th of August in the KZN Midlands.

Which other women have inspired you to push the boundaries during Women’s Month 2019?

The Woman in Waders make Waves

Fly fishing is not for the faint hearted – early, chilly mornings is one of the easier aspects to this intricate sport. South Africa is an avid playing ground when it comes to freshwater fly fishing, with many individuals and teams having been selected to represent South Africa both internationally and locally. There are many competitions, both individual and team events, occurring across South Africa. One of the most well-known group competitions is that of the Tops Corporate Trophy Challenge.

The Tops Corporate Challenge has been the most prestigious Fly Fishing event in South Africa for the last 18 years, with each year becoming more thrilling and competitive than the prior. This year, over 240 anglers made their way to Wildfly Waters, Natal Midlands, where the qualifiers for this competition commences. Teams battle it out over three legs, with the top five teams of each leg progressing to the finals. This year The Women in Waders, proudly sponsored by The Finance Team, have been the first women-only fly fishing team to have made it to the corporate finals in its 18 years of existence. These four avid fly fishers did not let the fear of this male-dominated sport get in the way of their vision to be victorious.

Over the weekend of the 22nd– 25th August, the ladies gave it their all at the finals of the corporate challenge. Tough conditions were eminent and the ladies fished their hearts out. They went on to finish 9th overall– an amazing achievement for the team and prestigious representation for all women in the sport.

The Women In Waders, proudly sponsored by The Finance Team, seen at the finals of the Tops Corporate Challenge. The WIW team: Roxanne Stegen (captain), Bridgette Stegen, Sindi-Leigh McBain and Lyndall Blaikie.

We asked team captain Roxanne to answer some questions around the challenge on behalf of the WIW:

  • What would have done the same or different?

Hahaha I’m not one for regrets. I’d do it all over again… I’d prefer to look forward where our eye on the prize is top 5 next time!

  • How has The Finance Team’s sponsorship helped the Women In Waders?

Through the buildup we’ve enjoyed enormous coverage as “The Finance Team – Woman in Waders”, as such propelling our brand in collaboration with The Finance Team and beliefs that we’ve inspired a few other woman to take up fly-fishing as a recreational past time and step out of one’s comfort zone. An excellent example is a recent comment from a woman on one of the Facebook promotions who wrote “#goals” – awe thank you – it’s what keeps us going. Perhaps more tangibly I believe the sponsorship allowed us ladies to simply go out have fun and fish without any “financial burden” or pressure.

  • How many other women were there in the finals?

There was one other woman in the finals, legendary Louise Steenkamp who fished with her male counterparts as a team. Must be said she was the Top Dog in her team!

  • Words of advice to aspiring women anglers?

If the outdoors and idea of fly-fishing appeals to you, there’s no need to know it all.  Simply start slowly, join our Facebook Page Woman in Waders SA, follow us on Instagram, come join in on a ladies clinic, join a fishing club, buy second hand gear and get out there… we look forward to joining you!

As we look back, The Finance Team is proud to have been backing The Women In Waders throughout the entirety of the Tops Corporate Challenge from the beginning. The ladies can be very proud of the amazing end results they received in this tough and enduring challenge!

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March 4, 2022 / No Comments /  

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