Mr Peter Fordjor, Consumer and Retail Banking Group Head of CalBank, has advised Micro, Small and Medium-Sized Enterprises (MSMEs) to embrace proper bookkeeping to keep track of their income and expenses.
He said by keeping accurate records, the business could get a snapshot of its wealth in the form of financial statements such as income statements, balance sheets, cash flow statements and more.
Mr Fordjor gave the advice in an interview with the GNA on the sidelines of a Small and Medium-Sized Enterprises (SMEs) Business Clinic organised by the CalBank and Focus 1 Media aimed at inculcating knowledge in Digital Finance, Taxation, Bookkeeping and benefits of Insurance to SMEs in Ghana.
He said bookkeeping was important for helping businesses to maintain accurate financial records but that many businesses had failed to implement the integral process.
He added, “apart from the fact that we are required under the law to maintain accurate books and records, doing so will save our frustration later on.”
He cited the lack of proper documentation to support loan application, lack of evidence knowledge on market in the particular sector or product and poor accounting as some of the top reasons for failed businesses.
Mr Fordjor said bookkeeping allowed the business to track growth, allowed business owners to take control of the finances and painted a clear picture of how monies were spent.
“Bookkeeping is important because it helps you budget. When income and expenses are properly organized, it makes it easier to review financial resources and expenses,” he stated.
He said the tax filing process could be made more efficient by simply having a bookkeeping function within the company, which would enable them to have financial information ready for tax purposes.
Mr Fordjor further urged the participants to go digital to help deal with fraud and robbery attacks, save time and manage the company’s books adding, “instead of scrambling for receipts or invoices, all of your financial information is organized on one central system.”