Your company’s financial statements tell the story of your business — how it’s performing, how stable it is, and where it’s headed. But if those numbers aren’t reliable, you could be making big decisions based on misleading information.
At Prosperity Accounting and Bookkeeping Solutions, we often meet business owners who only discover issues in their books after tax season or when applying for funding. By then, it’s usually too late (and costly) to fix.
So how do you know when your financials need a professional review?
Here are the top five warning signs to watch for.
1️⃣ Your Numbers Don’t Add Up
If your income, expenses, or profit figures fluctuate drastically without a clear reason — that’s a red flag.
Common indicators include:
- Negative balances where they shouldn’t be
- Mismatched totals between your income statement and balance sheet
- “Missing” transactions or duplicated expenses
These errors might seem small, but they can distort your business’s true financial health.
A professional accountant can identify inconsistencies, correct them, and ensure your statements are balanced and accurate.
2️⃣ You’re Unsure About Compliance
South African businesses must comply with several reporting and legal requirements, including the Companies Act 71 of 2008, IFRS for SMEs, and CIPC’s Financial Accountability Supplement (FAS).
If you’re not sure:
- Which reporting framework applies to your business
- Whether you need an audit, independent review, or compilation
- Or if your AFS meet CIPC and SARS standards
…it’s time to have your financials reviewed professionally.
✅ A compliance review ensures your records meet all statutory requirements — protecting your business from penalties and deregistration.
3️⃣ You’re Applying for Funding or a Tender
Banks, investors, and tender boards don’t just want numbers — they want assurance that those numbers are credible.
If you’re seeking funding or submitting tenders, your financial statements must be:
- Accurate
- Up-to-date
- Prepared or reviewed by a qualified professional
A professionally reviewed set of financials adds credibility and increases your chances of approval.
4️⃣ Your Accountant Only Prepares Tax Returns
If your current accountant or bookkeeper only handles tax submissions without reviewing or interpreting your financials, you could be missing out on valuable insights.
A professional financial review goes beyond compliance — it helps you:
- Understand your profitability and cash flow
- Identify weaknesses or risks in your financial structure
- Improve decision-making with accurate data
Your financial statements should be more than a SARS requirement — they should be a tool for business growth.
5️⃣ You Haven’t Had a Second Opinion in a While
Even if your books are up to date, an independent review every few years helps ensure accuracy, detect hidden issues, and confirm that your accounting practices are sound.
Independent reviews provide limited assurance, but enough to give you and stakeholders confidence in your financial reporting — without the cost of a full audit.
At Prosperity Accounting, we perform reviews that highlight both risks and opportunities, giving you a clear picture of where your business stands.
✅ Why a Professional Review Matters
Getting your financial statements professionally reviewed is not just about compliance — it’s about trust, transparency, and smarter decisions.
It helps you:
- Stay compliant with the Companies Act and CIPC
- Detect errors before they become financial risks
- Strengthen investor and lender confidence
- Make informed business decisions with reliable data
💼 How Prosperity Accounting and Bookkeeping Solutions Can Help
At Prosperity Accounting and Bookkeeping Solutions, we offer:
- Independent Reviews and compliance checks
- Preparation of Annual Financial Statements (AFS)
- CIPC Annual Returns and Financial Accountability Supplements
- Monthly Management Accounts and bookkeeping support
Our goal is simple: to make your numbers work for you, not against you.
📞 Contact us today to schedule a professional review and ensure your financial statements truly reflect the health of your business.gement reporting, and year-end compliance.
