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Accounting
Officer of the Close Corporation (CC)
One of the
advantages of a Close
Corporation is that the financial statements are
not required to be
audited by a Chartered Accountant.
Every CC is obligated to
appoint an Accounting Officer by the Close Corporation Act, the
Accounting Officer must be a member of a recognized accounting
profession.
The Accounting Officer has a number of
important duties such as submitting financial statements to the members
of the CC as well as
reporting on the financial statements. The Accounting Officer will also
help to meet the Accounting Requirements
of the CC.
The Close Corporation Act
requires an Accounting Officer to:
- Determine
whether the annual financial statements are in agreement with the
accounting records,
- Report
to the members regarding the financial statements,
- Determine
whether the appropriateness of the accounting policies are applied in
the preparation of the financial statements and, if necessary, to
revise the statements.
If
you do not have an accounting officer, many CC registration
companies
will be able to assist in appointing an accounting officer. This will
speed up the registration process, remember that you can your
Accounting Officer at any time change.
Accounting Officer Tips and Information:
- It
is important to note that if the accounting officer of the CC resigns,
then the CC must appoint a new Accounting Officer within twenty eight
days. If the position is left vacant for a period of six months or
longer then the members of the CC will become jointly liable for all
debts of the CC.
- An
Accounting Officer cannot perform the duties of an Auditor.
The
Accounting Officer of the Close Corporation plays a vital and necessary
part of the CC. The financial statements and reporting need to be
completed on time and in a reasonable manner. The information
represented by the financial statements can be analyzed
and used in
future planning and budgeting.
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