Consider this: when the class of 2012 was applying to college, there was no iPhone.

Until those students were just about at the end of their  junior years, there was no iPad. Both of these nascent devices now define the mobile internet, which is where all the action is.

But 2011 had some pretty remarkable advances that seem to be the start of inexorable things to come, as well as some surprising and sad examples of demise, whose impact will surely be felt for years to come, in ways that are currently near-impossible to predict.

Some may argue that 2011 was the year of the tablet (redux), because of the spritely launch of Amazon’s Fire and Barnes & Noble’s reboot of the Nook colour. I say, it was bound to happen, and that the only really interesting thing is that content companies are giving Apple a bit of competition, and not the hardware bigwigs.

The cloud was big in 2011, but in a way it just seemed to finally achieve escape velocity after Apple created iCloud within its rigorously controlled ecosystem.

Here are five tech events from 2011 that may not seem entirely obvious but which I think will resonate for years.

Siri

There was the usual guessing game when Apple was preparing to announce its successor to the iPhone 4 in the late spring. There was lots of talk about incorporating NFC, an emerging technology for mobile, wireless payments, and 4G. But close to nobody focused on Siri – even though the app had been well covered as a “gee-whiz” item when it launched.

Even when Apple bought the company a few weeks later, reporting focused on the challenge to Google and on search, rather than the prospect of entirely new ways of using a mobile device. Apple itself (as is its wont) did its best to downplay the purchase of a “small company”, even though it knew Siri was going to be the key ingredient of its next iPhone version.

“Apple buys smaller companies from time to time but doesn’t comment on products or plans,” an Apple spokesperson told the New York Times.

But even in its first outing, Siri has proven to be a mature and reliable companion that doesn’t improve on something but creates an entirely new relationship – and from that sort of gene pool, amazing things come.

Computers don’t judge – they don’t think – but by employing semantic interpretation, offering sensible possible answers to ambiguous queries and eliminating the need to train your phone to understand you, Siri has humanised voice communication with an inanimate object in a way which seemed impossible before it happened. Even IBM’s Watson – hardly a consumer device – doesn’t do anything much more or better than Siri, conceptually.

It is staggering to imagine the refinements and extensions that will be coming, and difficult to imagine that voice command won’t become the primary means of engaging mobile devices (and anything they control, which is everything) in very short order.

Which makes the argument about software and hardware keyboards already quaint. Speaking of which…

Black days at BlackBerry

BlackBerry is in what looks very much like a death spiral. It is still a powerful brand, and still has a loyal base, and the enterprise still favours it. It reigned supreme a mere two years ago, but there are too many good alternatives now and its chief asset – reliable push email – has been commoditised.

People like to get their own phones, and company IT departments are getting hip to the idea that BYO is better for them. A multi-day, multinational outage didn’t help Research in Motion’s reputation, and the absurdity of the Playbook tablet’s lack of the Personal Information Management software that is RIM’s raison d’etre only makes BlackBerry seem overripe.

Google+ Facebook = social network wars

While we were all waiting for the inevitable Facebook IPO, Google finally cracked the social network code with Google+. The social network from the search giant remains a work in progress, but the progress has been steady and positive.

Google may be No 2 for a long time (or forever), but for the first time in the short history of social networks there will be competition: the current flavour of the month isn’t going to kill the former one. Google will not walk away from this for at least two intertwined reasons: it needs a way to figure out how to reduce its nearly 100% dependence on ad revenue, and it has tons of that revenue to support Google+ for as long as it likes.

In 2012 I predict we will start to see Google+ buttons on more mobile apps, adding to the de rigeur Facebook and Twitter integration, which is how social services go viral in the mobile space.

Mobile Flash, RIP

Steve Jobs declared a jihad on mobile flash – read Walter Isaacson’s bio to understand his deep antipathy towards Adobe, and get a peek from my report of an Apple Town Hall. And Jobs won.

Reasonable people can differ on whether it made sense to make Flash better for mobile, or whether web designers should have taken the opportunity to end their sloppy addiction. But when Adobe said “No más” it instantly anointed a more open standard called HTML5 (enthusiastically backed by Jobs). This avoids a messy standards war and clearly supports a web language that is already being widely used to great effect in mobile.

The abandonment of mobile Flash could hasten the demise of Flash on the web entirely, as we rapidly make smaller screens and battery-powered devices our weapons of choice.

Steve Jobs, RIP

This one really is easy. Jobs was inventive in ways we will study for generations, but what he wanted to do more than anything was create a company that would continue to do what he did. That would be his enduring legacy.

At Wired we sometimes called Jobs “Willie Wonka”, not only because of his iconoclastic eccentricities but because he seemed to have a magic touch. Like Wonka, Jobs knew he needed an heir since we all knew, in our hearts, that he had been dying for years. I’ve said on many occasions that Apple is fine in the hands Jobs picked and groomed, CEO Tim Cook and designer Jonny Ives, which means Apple is fine for a decade or more.

What then? The death of someone so important to such an ethereal enterprise can’t be calculated, except in retrospect. But make no mistake: because of his untimely death the world changed forever in 2011.

- Reuters

According the Promotion of Access to Information Act, all privately owned businesses (Sole proprietor, Close Corporation, Private Company) must submit a manual to the SAHRC (South African Human Rights Commission) by 31 December 2011 to avoid penalties.  For more information contact us or go to www.sahrc.org.za.  Should you want us to complete and submit it for you the cost will be R520.00.

Regards

Graeme Scott

I would like this opportunity to thank all personal taxpayers for their assistance during the recent tax season!  It was a great experience and we hope to see you all again next year.  Just an urgent message to everyone to please try and plan your filing season, as more than 70% of the taxes we submitted was received in the last two weeks before the deadline.  This means an inordinate amount of pressure on all of us, and at the same time you wait 5 months longer for any refund that you qualify for.  It makes sense to contact us in August and be first!

We at BACH hope all our clients and readers have a wonderful Christmas season and a safe holiday wherever it may be!

Kind regards

Graeme Scott

Please note that this promotion does not include registration for efiling and there will be an additional charge if you are a COMMISSION EARNER.

Contact us to make use of this promotion!

Kind regards

Graeme Scott

A government source citing a policy paper to be released on Friday said earlier that the NHI, which is aimed at giving greater access to healthcare for the country’s poor, will require R125bn in 2012, R214bn by 2020 and R255bn by 2025.

If the NHI is implemented, it will be one of the biggest changes brought in by the ANC since it came to power in 1994.

Gordhan said the government did not want to increase the burden on taxpayers with the introduction of the NHI and the programme will be funded through the public finances, contributions from employers, surcharges and partnerships with the private sector.

“There is money in the systems and there may be extra money required,” Gordhan said.

The government has previously said it was investigating how the NHI would be funded and among the options were surcharges on taxable income and VAT increases. Analysts expect the main source of revenue to come from general taxation.

But Gordhan said: “We don’t want to burden anybody more than they need to under normal taxation.”

“The goal is to try and finance healthcare for everybody,” Health Minister Aaron Motsoaledi told reporters at a briefing.

Motsoaledi said that proposed system will not be able to mirror South Africa’s advanced private healthcare sector but would give millions of poor people better access to healthcare.

“NHI is not intended to destroy the private healthcare sector. (It) is one meaningful way to reach across the wealth gap. We all need decent healthcare.” he said.

South Africa is spending about 8.5% of gross domestic product on public healthcare, but the standard of service is poor. Giving the majority access to world class private facilities aims to improve quality of health treatment.

Contributors to private healthcare schemes are concerned that the NHI would force them to seek treatment at poorly run and overcrowded state facilities.

The policy will be published in the official government newspaper on Friday, kicking off a three-month consultation process.

Health industry officials said many private healthcare providers were not opposed to the NHI.

“Private healthcare professionals are not opposed to the NHI because it will bring more business to them, but they want to see what the paper sets out,” said Dr Norman Mabasa, president of the South African Medical Association.

“We want to see what government plans to include on the NHI and how it will be implemented. We don’t expect the free system to cover everything that private medical offers.”

FOR many people who have been wronged, getting a lawyer on board doesn’t always appeal. For starters, there is the prospect of paying thousands in fees, contending with legalese and, possibly, getting the lifeblood sucked out of you.

Enter the small claims courts (SCCs), which can handle matters of up to R12 000. No lawyers are allowed in these courts.

There has recently been a sharp increase in the number of SCC summonses – from 34 307 (2009/2010) to 50 472 (2010/2011), while the number of trials grew by 29% in that time.

There are about 224 SCCs nationwide, which deal with 150 000 civil matters every year, says Chester Mpane of the department of justice. (The busiest SCC courts are in Gauteng, followed by the Eastern and Western Cape.)

Of these matters, some 35 000 result in trials; the rest are usually settled before the court date or stall at the inquiry stage.

Bert van Hees, a retired legal journalist who now runs the advisory service smallclaimssa.co.za, says that in his experience most SCC cases concern claims over car accidents, medical mishaps or rental disputes.

Firstly, the claim may not exceed R12 000. If more money is involved, you could decide to lower your claim to R12 000 if you would prefer the SCC to handle it.

The limit was only recently increased from R7 000. Mpane says an assessment will be made during November 2011 to decide whether a further increase is necessary. “It (will) also require extensive consultation with roleplayers such as the attorneys’ profession.”

You can only claim if you do it in your personal capacity and you can’t lay a claim against national, provincial or local  governments, but everyone else is fair game – including companies and parastatals like Eskom.

The SCC may throw out your case, particularly if it is too complex for the SCC. A claimant still wishing to pursue such a claim will have to take it to a regular court. Prevent this by presenting your case in a straightforward manner, with all the supporting documentation and witnesses who know what they’re talking about.

Your case must also be against the right person and, importantly, has to be legally valid. While the SCC clerk may give you advice on whether you have a case, this may not always be valid, says Van Hees. He thinks there has been a deterioration in clerks’ skills in the past 10 years, and advises you to get another opinion if you are unsure.

Mpane acknowledges that the education of clerks is receiving attention, particularly to improve on the screening of cases and the drafting of documents. Recently the department of justice received a donation from the Swiss government for the SCC and part of the money will be used to train clerks and commissioners (the SCC “judges”).

How to proceed

You have to start with a letter of demand (LOD)  which can be copied and pasted from http://www.justice.gov.za/forms/form_scc.htm. The LOD may be sent by registered mail or, preferably, hand delivered to the defendant, and gives the defendant 14 days in which to pay the claim.

To obtain a summons from the SCC offices after the 14 days have expired, you need to produce proof that the defendant has in fact received the LOD.

You need to go to the SCC where the defendant lives or, if the defendant is a business concern, the SCC where the firm or company’s premises are – not the SCC closest to you.

Contact your local magistrate’s court to find out which SCC you have to go to. (Usually the SCC resides in the magistrate’s court – cases are typically heard after 16:00 on work days.)

Get the details to the clerk of the SCC and make an appointment to hand over all relevant documentation, including proof that the person received your claim as well as contact numbers.

The clerk will go through the documents and should assist you in drawing up a summons, as well as determining when the case will be heard.

A summons for the case then has to be served on the opposing party – and again you need to get a receipt.

Usually, people opt to leave this to a sheriff. You can hand the summons, together with the service fees (usually less than R100), to the sheriff in whose district the opposing party lives. The sheriff will provide you with proof that the summons has been delivered.

Now, the opposing party can decide to comply with your claim and pay up. You will have to let the court clerk know as soon as you decide not to proceed with the case.

But that person could also decide to respond to your claim with a statement sent to the clerk of the court. The person could also institute a counterclaim, but would still need to attend the hearing.

How to win

- Keep all documentation – contracts, documents and other evidence for your claim – to present in court.

- Witnesses are key. Without corroboration, it will be only your word against another party.

“Without witnesses (to a collision, perhaps) or a written contract to prove the terms and conditions (such as a lease agreement), or invoices to prove a transaction and so on, a claimant is likely to suffer the inconvenience of an otherwise unnecessary postponement or, worse, the humiliation of the claim being dismissed outright as unproven.

“Be warned, it often happens,” says Van Hees.

He says it is particularly important to bring experts to court, for example motor mechanics, roofing experts, architects, an IT expert or even an independent dentist to prove your claim against your dentist.

But he warns that they have to be in court. “Because the commissioner may need to question your expert, a statement or sworn affidavit by the expert, as a substitute for his actual presence in court, is unacceptable and may seriously jeopardise your claim if the commissioner needs to question the absent expert – after all, the commissioner cannot question statements or affidavits!”

- Prepare your statement. You will be asked to state your case, so rehearse your argument thoroughly beforehand. Keep it short and rational.

- Draw up a list of questions. You are not allowed to grill the other person in court, but you may – with the commissioner’s permission – put a few questions to the defendant. Make notes of any inaccuracies in his answers and bring that to the commissioner’s attention.

Possible outcomes

If the opposing party doesn’t pitch on the court day, the commissioner will decide whether the claim is valid and then, if he agrees, gives a “default judgment” against the opposing party. That person then has 10 working days (after being informed of the judgment) to cough up.

If the person had a very good excuse for not showing up – usually this may not include lack of money, personal commitments or business pressures – as well as a valid defence, he may apply to have the judgment rescinded and a new court date may be determined.

(If you don’t show up on the day, you don’t have to provide an excuse – the case is simply removed from the roll. But if you still wanted to make a claim, you will have to start afresh.)

If both of you showed up and stated your cases, there is no appeal against the commissioner’s ruling, whichever way it goes.

If the commissioner can’t decide which party to believe, he may give an “absolution from the instance” ruling. This means you can try the claim again – but this time make sure you have adequate proof.

If you win the case, the opposing party has 10 workings days to pay the claim, as well as the costs you incurred if you used a sheriff (no other costs will be allowed).

If the person doesn’t pay, one option is to obtain a document known as a writ of execution against moveable property. This is usually available at the small claims offices, says Van Hees.

“As a final gesture of goodwill, the small claims administration will help you complete the document, and you then take it to the sheriff (as with the summons).”

If you have managed to locate the defendant, the writ empowers the sheriff to seize any attachable property belonging to him or her. The sheriff’s fee for this is in the region of R120.

If the sheriff is able to seize sufficient movables to cover your claim plus his own fees, your troubles are over, says Van Hees.

If the defendant has disappeared or owns nothing that can be attached, you can pursue the matter through the magistrate’s court.

But remember, this will involve costly legal expertise and tracing fees – completely out of proportion to your claim and with little prospect of recovering your costs, says Van Hees.

“If you find yourself in this predicament, it may be wise at this stage to abandon your claim, and to write off your loss as one of life’s unfortunate experiences.”

- Fin24

Elma Kloppers

Prices in the luxury penthouse bracket have seen doubt-digit growth in Cape Town, SA’s most expensive real estate area.

Johannesburg – Prices of South Africa’s super-luxurious penthouses have risen astronomically over the past couple of years. In Cape Town, which boasts the country’s most expensive property, double-digit annual growth in the penthouse market has been achieved in recent years. Since 2008 the Mother City has also held the record for the highest price yet achieved for a penthouse in the country. This was for a super-luxurious penthouse in the One & Only Hotel, which was sold for more than R115m to a South African buyer by Seeff Properties. Ian Slot, managing director for the Atlantic Coast region at Seeff, said the remaining two penthouses at the One & Only Hotel are also on Seeff’s books at R105m for 1 440m², and R95m for 798m², amounting to R72 917/m² and R118 048/m² respectively. He ascribed the sought-after nature of Cape penthouses to their location and the fact that they offer views of two of the world’s heritage sites, Table Mountain and Robben Island. In the Front Yacht Basin of the V&A Waterfront in Cape Town, penthouses worth more than R315m have been sold over the past ten years and the average annual growth since 2005 has been 21%, said Emelia van der Linde, Seeff’s sales consultant for the Waterfront. She is currently marketing an 833m² penthouse in the Pinmore Building in the area for R65m. In recent years investors in the market have achieved astronomical growth. A 417m² penthouse in the Marina Basin in the V&A, which was bought for R18.25m in 2007, was sold two years later for R40m – showing growth of 49% a year. In the City Bowl, Mandela Rhodes Place is in demand and a penthouse was sold for R5.5m in 2007, entailing a 32% profit in only seven months. Joburg too has its highs In Johannesburg the luxurious penthouses in the Melrose Arch development to the north of the city need in no way take a back seat to their Cape counterparts. The third phase of this mixed-use development’s residential component will be announced in two weeks’ time, and two of the five penthouses have already been snapped up by South African buyers at R25.5m each. This is a new high for a penthouse, and the previous record price in Melrose Arch was R7.5m in 2008, said Peet Strauss, manager of Pam Golding Properties (PGP) at Melrose Arch. The new phase involves a R400m development with 59 luxury dwelling units, with five penthouses each more than 800m², including roof gardens and swimming pools. He said the cheapest penthouse costs R14m and the prices of the units start at R3.5m. Strauss said properties in Melrose Arch do not readily change ownership and most of the units in the development are occupied by their owners. The penthouse in the Pinmore Building at the V&A Waterfront in Cape Town is being marketed by Seeff Properties for an astronomical R65m.

Regards

Graeme Scott

The SA Institute for Professional Accountants (SAIPA), is calling on small business owners to actively involve their accountants in their company growth plans. SAIPA says this is one of the easiest and most effective things business owners can do now to help grow their operations.

“When you’re running your own business, it’s easy to become isolated and not know where to turn for help,” says SAIPA technical executive Faith Ngwenya. “However, the good advice you need could be as close as the accountant who prepares your financial statements and handles your tax matters; you just need to talk to them!”

According to Ngwenya, SAIPA’s more than 6000 members, who are recognised as Professional Accountants (SA), do way more than simply crunch numbers and produce financial reports. “In fact, given the years of experience that many Professional Accountants (SA) have in assisting SMEs, they’re arguably the best source of advice on what businesses should be doing to grow,” she says. “Added to this is the fact that many Professional Accountants (SA) specialise in a given sector, so if you have a business in that sector, it just makes sense to talk to such an expert.”

With a particular focus on skills development, SAIPA has urged government and other stakeholders to do more to help SME owners to assist, sustain and grow their businesses. “As the engine-room of the economy, we believe it’s important that a major focus be placed on helping SMEs to create jobs, and not just on pumping money into helping big corporate do this,” adds Ngwenya.

“Given the extensive knowledge and practical experience of our members, together with the ongoing skills training they receive, we believe Professional Accountants (SA) are in a position to play a unique and vital role in supporting job creation in South Africa as they add value to their clients’ businesses,” she says.

Having been approached for advice, Ngwenya says the first thing the Professional Accountant (SA) will do is consider where the small business is right now and what its potential for growth is. “This is where proper record-keeping is absolutely essential – an area of weakness for many small companies that could see them going out of business.”

“Typically, the Professional Accountant (SA) will focus on ascertaining the businesses’ cash flow situation and identifying areas in which it can streamline operations and reduce costs,” she says.

“With an understanding of the larger context in which the business operates, the Professional Accountant (SA) will also examine potential risks it faces, with a particular focus on ensuring that the company adheres to legislation, for example, in terms of the new Companies Act and Taxation Laws.”

Another important point is accountants’ access to resources that can help businesses grow, for example, government’s many assistance programmes under the Department of Trade & Industry. “The Professional Accountant (SA) will typically be well-versed in how the business can access finance as well as support programmes that are designed to help it to grow, such as export programmes and export and tax incentives that are available.”

In this regard, the government’s Industrial Policy Action Plan (2010-2013) may be particularly helpful in highlighting economic sectors that are poised for growth and warning businesses in other sectors of potential tough times ahead. “The government has identified areas in which potential exists for jobs to be created and it’s in these areas that it will be investing money over the next five years,” says Ngwenya.

“So, it just makes sense that small business owners talk to their accountants for help with accessing and maximising the opportunities that exist.” The bottom line is that, it’s not just big companies that should have strategic plans in place. “If you, as a small business owner, wish to grow, you need a five to 10 year plan to help you do that,” she says.

“Else, if you don’t start doing something differently, how can you expect different results?” “With today’s rapidly changing economic landscape SMEs are seeking specialised accountancy services, objective guidance, and trusted business advice more than ever before. The Professional Accountant (SA) can be counted upon to help, possessing the financial and business skills as indicated above, that are crucial both for your business’s survival and growth as well as cost- effective compliance with regulation” says Ngwenya.

“Every small business owner needs someone to talk to who can help take their business to the next level,” concludes Ngwenya. “Make sure you talk to your Professional Accountant (SA) today!”

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http://flatartstudios.wordpress.com/

Have a great long weekend!

Graeme Scott

Open letter by Graeme Scott – Member of BACH Accountants and Management Consultants CC

SMALL BUSINESSES, REGULATIONS AND BUSINESS REGISTRATIONS

Dear Business Owner or Potential Business Owner,

A business starts with a hope, a dream and an idea.  Then the hard work starts.

In South Africa Small business works within a highly regulated framework.

The good is that if you meet all the requirements, then issues like finance and the legal framework, become a much smaller part of the
entrepreneur’s already hectic day.

The bad is that if you do not meet all the requirements – you will be job hunting soon.

Then the ugly – who to go to for advice on the structures and registrations of your business?
According to much more pedantic people than myself, there is a shortage of 30 000 accountants in our beautiful country.  What does this mean?  The good accountants get swamped and the badeggs pop up like mushrooms all over the place.

The solution – make sure that your accountant has a strong financial management background and do not hesitate to ask for a professional
membership number!

Now back to registrations and formalising your business –

-  Build a business you can sell.  This means that you need to register your business in a separate entity from yourself.  Something like the now defunct Close Corporation.

-  Register this entity for Income Tax.

-  Is your business going to do more than R1m turnover per annum?  Then you need to register for Value Added Tax.

-  Are you employing anyone?  Then remember to register for:

-Workmens Compensation  at the Department of Labour

-PAYE/SDL/UIF at SARS

You will always need the following when registering for any of the above:

-  Get advice!  Registrations are more complicated than they appear and a mistake or a misunderstanding here will be much more expensive than a good accountant.

-  Get a municipal account registered in your business name OR have a copy of your lease agreement in the business name – all registrations require a positive proof of address.

-  Get ORIGINAL letters from your bank as proof of your business bank account.

-  Make sure you have very CLEAR copies of your Identity Document.

For good, honest and value for money advice – have a look at www.bachaccountants.co.za and contact us to get your business off to the right start!

Regards

Graeme Scott