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part-time-financial-manager

What to look for in a Part Time Financial Manager?

Being a part time financial manager doesn’t mean being able to read financials and crunch numbers, it means being able to manage numbers. A good part time financial manager should be able to support and guide management as how best to implement or amend a company’s financial strategy, embark on expansion programmes and provide accurate financial data on all aspects of the business. They also need to become a trusted and confidential source of financial information. Part time financial managers need to be persistent and assertive and combine this with tact and diplomacy. In our experience, we find that the title of “Financial Manager” is given very liberally and often elevates the functional position of senior bookkeeper or accountant to that of a manager.

While the role of a financial manager is more of a hands on role than that of a financial director / CFO, the operative word is manager. Unfortunately, many capable financial managers are not supported by competent staff below them which results in them having to perform tasks and duties NOT typically associated with the role. Your financial manager should not be a data capture clerk and should not be entering debits and credits into an ERP system. For a part time financial manager these issues are amplified as there is limited time available to be effective at this level. It is essential that your part time financial manager has adequate experience to ensure that the people, systems and controls in his environment are operating adequately and efficiently so as to best execute his/her role. Key attributes included people management and delegation of responsibilities and the resultant measurement and management of these responsibilities. This is not a god given talent and comes with years of experience.

A Part Time Financial Manager must also be able to (Not Exhaustive)

• Assist in making clear and decisive financial decisions.
• Assume a hands-on approach to risk management.
• Understand operational performance and what contributes to better results.
• Provide a good understanding of the compliance requirements of a business.
• Understand organisational structure and human resource issues.
• Provide an awareness of the benefits of appropriate tax planning.
• Provide financial insight regarding a company’s implementation and execution of strategy.
• Assist companies with capital growth.
• Apply financial tools and methodology to benefit a company.
• Design and build appropriate financial models and “what If” scenarios.
• Design, Implement and monitor an appropriate budgeting process.

The risk of not utilising the services of an appropriately qualified and experienced financial manager can be catastrophic. Entrepreneurs and business owners start to slide into this role and start spending more of their time on finance and administration issues and ignore the one element in the business that they are really good at, marketing and sales. The opportunity cost of that will far outweigh the cost of a good financial manager. Similarly, smaller companies that start to expand rapidly often find themselves wanting when their controls, systems and processes start to fail and their financial forecasts / models produce misleading / inaccurate information. This can be the end of a very promising beginning.

Many small to medium sized enterprises believe that they are not in a position to engage the services of an experienced financial manager. This may be due to the costs associated with engaging a full time financial manager or that the volume of work simply does not justify the employment of a full time resource. Such a belief is completely unfounded as part time financial manager resources are available to the SME market and are provided by niche, financial resource consultancies such as The Finance Team. These part time financial managers are employed because they possess the required qualifications and come with many years of experience.

Larger companies also use the resources offered by a part time financial manager. Situations and projects often arise that require experienced financial expertise that are not readily available within the organisation. Arising when employed resources are used to capacity and it does not justify the full time employment of a resource for a short term or interim solution, using a part time financial manager can readily resolve this capacity shortage.

How can a part time financial manager make your business more profitable?

By properly using the skill set of a qualified and experienced part time financial manager a business owner is able to embark on business growth whilst balancing external risk. A good financial manager can offer support and guidance to company management on issues that affect the company’s profitability.

In short, a good part time financial manager will be able to put the financial science behind your gut feel where your gut feel is no longer the prudent alternative, owing to the magnitude and risk associated with your next big business decision.

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July 7, 2022 / No Comments /  

Interview questions for a financial director

Finding the right financial director for your business can be a long drawn out process. Financial directors are not only responsible for the company’s wellbeing, but they also play an integral role with regard to strategy and growth of a business.

Below are some key interview questions to ask the potential financial director that will help you choose the best candidate for the position of financial director.

It is essential that one plans your interview and that you ask each of the candidates the same questions as these will provide a benchmark when selecting the best financial director for your company. If your interview process is lacking strategic thought, you’re likely to miss out on valuable insight, both positive and negative, on your financial director candidates. Failing to follow this type of approach could lead to making the wrong hires and lead to future retainment issues. Posing a variety of particular questions will help you uncover the passion, cultural fit, work ethic, and problem-solving abilities of your potential financial director.

We have formulated a list of potential interview questions for a financial director that will allow you to get more out of your interview process.

What drives you?

By asking this question you are able to get insight into what motivates the potential financial director. Always try and ascertain if they are motivated by the money or the drive to problem solve and create success for the company. Keep in mind, the desire to make money doesn’t necessarily equate to a sufficient drive to succeed or real passion for the business. It often comes with limitations.

What can you bring to this role that other financial directors can’t?

This question allows you to gauge if the candidate deserves your attention. It could be their precise industry experience, achievements in their career, or even their unique personality. How the candidate answers will give you a good indication of the potential financial director’s confidence. This question is important for testing your candidate’s level of confidence — is it too much or just right?

What hurdles or obstacles have you overcome?

Posing this question will help you key into the financial director’s ability to overcome adversity or challenges throughout their career. This question will help judge the tenacity of the candidate. For example, if they were retrenched previously you would want to know why and how they moved forward subsequent to the retrenchment.

What would previous employers have to say about you?

Focusing on what employers and ex co-workers feel about the candidate is essential to finding out whether they’re a match for the position and your company as a whole. Always write down what your candidate shares with you and follow up with their references to see if the descriptions match. Don’t only follow up with previous employers given as a reference. Follow up with previous employers not specifically mentioned.

Where do you see yourself in five years?

This question is of vital importance. You do not want to invest time and money with a financial director that does not have long term goals with your company. If the candidate answers “I don’t know” then perhaps they are not the right executive for the position, however, if they express a desire to grow and be part of your organisation then they are worth consideration. Employing a financial director who is just looking for a “here and now” type of position won’t do you any favours in terms of a long-term hire. Watch out for ‘standard’ answers that sound more like wishful thinking than actual long-term plans.

Are you adverse to working long hours?

Being the financial director of a company can be a stress filled and taxing position. If you are overseeing a company’s wellbeing it may require longer hours, especially for the new hire who needs to familiarise themselves with new systems and processes of the organisation. How the potential financial director answers will allow you to gauge the commitment to the organisation.

What do you know about our company, our competition, and our industry as a whole?

Asking your candidates to sum up your company and their industry knowledge will give insight into how much research they did prior to the interview.  Candidates who do not know much or are unable to respond to this question in some detail are not the type of financial director you want for your business. If the candidate has actually spent time researching your company and the services offered, then they will be able to provide you with a comprehensive answer. It will give you a good indication on the thoroughness and level of dedication of the person being interviewed.

Speaking in broad term, it can take up to six months to find the right financial director for a company due to the rigorous interview processes. The problem is that most companies can’t wait 6 months without a senior financial executive in place to steer the ship in the interim whilst sourcing the permanent Financial Director. There are financial outsourcing companies, like The Finance Team, that can help with this exact challenge. They provide highly experienced financial directors and chief financial officers on a part time or interim basis to ensure the company’s operations and financial department still operate at their peak. These part time or interim financial directors are highly qualified and experienced across a multitude of industries so are able to bring immediate benefit to the organisation.

image credit: huffingtonpost.com

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July 1, 2022 / No Comments /  

Hiring a Financial manager -The pros & cons

Some business owners feel that having a financial manager in their company is critical. However some think of it as a “nice to have”. So what are the pros and cons of hiring a financial manager?

Pro #1: Your financial manager has insight into the economic environment around you.

Your financial manager not only understands how to construct financial statements, they understand the market forces that are creating competitive pressure and consumer demand too. With a well-informed financial manager at your side, you can better plan for the future of your business – both financially, and as a whole.

Pro #2: Your financial manager can free up your time to do what’s most important.

There was a reason you started or took over the business, and it wasn’t to scrutinise your debits and credits. Let your financial manager take away the stress of financial oversight and chasing invoices, and allow you to focus on what you do best: building relationships, innovating and growing your business.

Pro # 3: Your financial manager can ensure that your money is optimally spent.

If there was ever a time that you needed to ensure your cash made the biggest possible impact, it’s now. With the economy under its current strain, there is little margin for error, and risk in most industries needs to be curtailed. Your financial manager can help assess the upsides with the risks you are contemplating. They make sure your business is spending its money in the ways that will bring the best returns. They will help you make the smartest – and best informed – decisions around these and other questions.

Pro #4: Your financial manager can help your finance team function optimally.

Your financial manager should implement control measures that allow you to more easily trace where money is coming in and out. It should also increase the efficiency of your invoicing processes – meaning cash comes in more quickly. Your finance team, which could be made up of any number of senior or junior accountants, bookkeepers or clerks, will now have a greater level of accountability.

The Con: Your financial manager could be – but doesn’t have to be – expensive.

This is the probably the biggest reason why you haven’t brought someone on already… the cost! Who can afford another expensive full time resource?

Your concern is, of course, a valid one. Finance professionals are highly qualified and experienced, and usually command a hefty salary. But that’s where The Finance Team comes in. We’re at the forefront of a solution in South Africa, where we’ve built up a network of trusted finance professionals who can provide services on a part-time, ad hoc or interim basis. Think only paying for the time you need, and no more. Then evaluate that against the cost of spending your time on non-core activities for the business, or having a team that is functioning under-optimally. Contact us today to find out more.

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June 7, 2022 / No Comments /  
ways to select a part time finance director

Key considerations when selecting a Part Time Finance Director

Post lockdowns and under global headwinds, when selecting a part time Finance Director one should consider a few key elements. Your part time finance director should be able to oversee all the financial aspects of your company and have the necessary qualifications and experience to ensure the correct flow of financial information to the chief executive officer, the board of directors and where necessary, external parties such as investors and financial institutions. The incumbent should be able to create a financial strategy that dovetails with the company’s overall business strategy to create a winning formula for success.

Experience is critical when selecting your part time finance director. One should select a seasoned financial professional that has had many years of experience in a multitude of industries in some cases and industry specific experience in others. Experience cannot be bought (or faked for that matter) and is one of the first attributes that Human Resource departments and company leadership take into consideration when assessing top financial talent. Part time finance directors are typically semi-retired or financially secure and don’t necessary need or want full time employment but can still add a huge amount of value in terms of their experience and skill to companies who either can’t afford or can’t justify the work load of a full time finance director.

There are 3 ways to select a part time Finance Director:

1.     Recruitment Agencies

Recruitment agencies have been the traditional avenue for sourcing full time and interim financial talent for some time now. While the recruitment model has and will continue to work well for full time placements there have been challenges when it comes to part time and interim placements. The biggest challenge is that most Part Time candidates are actively looking for full time employment and as such there is a high turnover of staff. This results in inconsistent service levels as great candidates are lost to full time positions and replaced by unknown and untested staff. This inconsistent service offering can lead to unhappy clients and serious brand damage.

Generally speaking, recruitment consultants who are placing professional candidates on a part time / interim basis are not professionally qualified or experienced and consequentially don’t understand the client need fully, which can lead to the wrong candidate being placed at a client. This is a crucial element of the process as most business owners are not financial professionals and therefore rely heavily on the consultant to advise and make the most appropriate selection.

There are not many agencies in the industry that specialise in part time / interim placements as the focus tends to be on full-time placements. This does appear to be changing as the international trend to outsource highly skilled professionals becomes more popular here in South Africa.

2.     Private Referrals

Some accounting professionals consult to companies on a contract basis and are sourced either directly through advertising or referrals from friends or colleagues. While this option may well be cheaper than other methods, the client has none of the benefits associated with contracting through a consultancy.

Human Resource departments or company leadership will still need to conduct their own background checks and establish candidate suitability which is a difficult and risky task for an entrepreneur / HR Manager without a financial background.

3.     Specialist financial outsource consultancies

These companies specialise in employing experienced and flexible financial professionals. All their staff members have undergone a very stringent selection process that focuses on experience and their ability to deliver and all references are confirmed prior to them being included in any form of service offering.

These companies are managed by professionally qualified and experienced individuals that are able to understand the challenges of the client and through experience and a good working relationship with their staff are able to place the right individual or team of people at the client that are best suited to the challenges at hand.

These firms charge an all-inclusive hourly/daily rate depending on the type and length of engagement and as a result there are no hidden costs. The price you pay INCLUDES annual leave, sick leave, pension/provident fund contributions, medical aid, travelling allowances, incentive bonuses and the like. These hidden costs can add between 20 to 50 percent to your cost of employment. You pay for hours worked. Nothing more.

(Image Credit: Membersathome)

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May 17, 2022 / No Comments /  
finance-manager

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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Image Credit : educationcareerarticles.com

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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 /  

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

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