Accounting Officer
What is an accounting officer?
An accounting officer is a person who is qualified to review and sign off on a company’s financial records, ensuring they comply with accounting principles and legal requirements. In South Africa, the term is most commonly used in relation to Close Corporations (CCs), which are still active even though new ones can no longer be registered.
Every Close Corporation must appoint an accounting officer to oversee its financial reporting and confirm that its records are in order.
What does an accounting officer do?
The accounting officer’s primary role is to:
- Review the CC’s annual financial statements
- Ensure that proper accounting records are kept
- Issue a report confirming whether the financial statements agree with the underlying records
Unlike an auditor, an accounting officer doesn’t conduct a full audit. Instead, they provide a moderate level of assurance based on a review. For CCs, this is usually sufficient to meet legal requirements under the Close Corporations Act.
In certain public or state-owned entities, the term “accounting officer” can also refer to a senior official responsible for budget oversight, especially under the PFMA (Public Finance Management Act) — but this is a different context than for small businesses.
Who can be an accounting officer?
Only someone who is a member of a recognised professional accounting body (such as SAIPA, SAICA, or ACCA) can act as an accounting officer for a Close Corporation. Their membership must be in good standing, and they must accept the appointment in writing.
If your CC is submitting annual returns to the CIPC, you’ll need to confirm who your appointed accounting officer is and include their details in the filing.
Need help filing your annual returns with the right accounting details?
Govchain makes Annual Returns easy to calculate and submit, helping you stay compliant with CIPC, including the appointment of an accounting officer for your CC.