Financial Year-End

“What is a financial year-end?”

A financial year-end (also called a fiscal year-end) is the last day of your company’s 12-month financial reporting period.

It’s basically the "cut-off" date for your business's finances…

It’s the point where you stop tracking income and expenses for the year so you can prepare your financial reports and submit your tax returns.

“When is my financial year-end?”

You pick your financial year-end when you register your company with CIPC.

Most businesses choose 28 February (to line up with the SARS tax year), but you can choose any date that makes sense for your business operations.

Your financial year-end can also be changed later if needed, but it must be updated with both CIPC and SARS.

“Why is financial year-end important?”

Your financial year-end affects key deadlines like:

  • When you must submit your annual financial statements
  • When your tax returns are due (for both Income Tax and Provisional Tax)
  • The timing of audits or independent reviews (if required)
  • When you calculate profit or loss for the year

It basically sets the calendar for all your business's financial and tax responsibilities.

“What happens at financial year-end?”

At the end of each financial year, your company should:

  • Finalise all financial transactions up to that date
  • Prepare annual financial statements
  • Submit your tax returns to SARS
  • Review performance and plan for the next year
  • Ensure compliance with CIPC and SARS

If your company is active, these steps are important for maintaining good financial health, and staying on the right side of the law.

“What happens if I ignore my financial year-end?”

If you don’t follow your financial year-end obligations:

  • You could miss tax deadlines and incur penalties from SARS
  • Your company may fall out of compliance with CIPC
  • You might struggle to access funding or submit tenders due to outdated financials
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