Financial policy: are you compliant?

Heading: 

Professionals who operate in the accounts payable field are unfamiliar with the
National Credit Act(NCA) and how to correctly apply financial controls in the
workplace, according to finance specialistCarel Spies.

Irresponsible lending practices in the past have lead to stricter controls on
current credit processes. "Worldwide, economic screws are getting tighter,' he said.

After the global recession of 2008,governments have become very cautious
about lending policies. In South Africa efforts have been made to protect the public
through the financial controls outlined in the NCA.

"If you sell something and you haven’t made sure that the person can pay you back,
you will be held responsible if the debtor fails to settle their account.'

Business can no longer threaten people to pay outstanding fees. "The onus is on the
lending institution to do the appropriate research.'

Some other stipulations in the National Credit Act include:
- The right to apply for credit
- The right to know why your credit application was rejected
- The right to all info pertaining to above in your selected official language
- The right to confidential treatment of your application

Failure to adhere to the NCA guidelines could result in penalties or charges of fraud
and corruption.

Spies observed that people who work with creditors also don’t know the basic
principles of VAT. He said that these kinds of knowledge gaps in the sector had led
to the launch of the Essential and Best Practices for Accounts Payable course.

Speaking on the issue of Generally Accepted Accounting Principles (GAAP), he said
that South Africa had improved its monitoring of accounting standards.

This is good news for financial professionals who adopt these principles but bad news
for those who don’t.

GAAP refers to the standard framework of guidelines for financial accounting used
all over the world and plays a role in maintaining the quality and accuracy of financial
documents and practices.

Course Participants will receive training on financial legislation including; SARS
requirements, General accepted accounting practices (GAAP) and the National Credit
Act. The course also covers fraud prevention, time saving techniques and how to
measure and manage AP performance.

The Essential and Best Practices for Accounts Payable course is held by Alusani Skills and Training Network. For more information call 011 447 7470, email [email protected] or visit the website Alusani Skills and Training Network

By Cindy Payle - Skills Portal

Comments