annual financial statements

Annual Financial Statements (AFS) are an essential financial report that summarises a company’s financial performance and position for a specific financial year. In South Africa, companies are required under the Companies Act to prepare annual financial statements within six months after the end of their financial year. These statements typically include a statement of financial position (balance sheet), profit and loss statement, cash flow statement, and changes in equity, giving business owners, SARS, and other stakeholders a clear view of the company’s financial health.

Accurate and up-to-date annual financial statements are often required for tax compliance, funding applications, debt relief arrangements, and CIPC regulatory requirements, making them a critical part of running a compliant and financially transparent business in South Africa.