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Showing posts from May, 2017

THE 5 MOST COMMON ACCOUNTING CHALLENGES CONFRONTING SMEs IN GHANA

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The focus of all small and medium sized (SME) business owners and managers in Ghana is to grow and expand their businesses. The focus is always on getting more customers, making more money and expanding operations. By being single mindedly focused on the marketing, sales and the operations of the business, many chief executives and business managers lose sight of the accounts and finance of the company!
We all understand that businesses are not in business to keep books—obviously to make money—but by not keeping the books properly; you will be out of business. This means in as much as you want to promote your products, make sales and generate profits, you need to watch the bottom line, or else your company will be exerting efforts in futility.
SME’s in Ghana face different kinds of accounting challenges, some minimal and others enormous. Always remember that “Cash is king”. Cash is the fuel that runs your business empire. That means you must always keep track of your cash and cash recor…

THE NO. 1 PROBLEM FACING SMEs IN GHANA AND HOW TO DEAL WITH IT

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Small and medium sized enterprises (SMEs) have been the backbone of Ghana’s economic and social development for the past decades. They are the major driving force for business development, employment creation, production of goods and services and internal income generation in Ghana.
According to the Registrar General’s Department as noted by Graphic Online, 90% of registered businesses in Ghana are SMEs. An SME Research Report by Ghana Web indicated that SMEs contribute an estimated 70% of Ghana’s GDP and account for approximately 85% of employment in the Ghanaian manufacturing sector. It is therefore implicit that to maximize the developmental potential of Ghana, the companies classified as SMEs must beassisted to develop.
 So, what is the No. 1 problem facing SMEs in Ghana today?
The No. 1 problem facing SMEs in Ghana today is access to credit.
In Aryeetey E.T’s study (recorded in Garriba Fuseini’s MPhil Economics Thesis) on 133 manufacturing firms in Ghana, he noted that “an overwhelm…

A LETTER TO THE GIANTS

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Multisoft Solutions have been in the industry for over a decade and partnered with the giants in the software development industry! We have settled on tried and tested recognized international brands... Sage, IQ Retail and SAP respectively.

Sage, you are the first and faithful wife I cannot let go! We have been in this relationship for a number of years and most especially you came at the time when I needed you the most. Just as it is in other relationships, ours is no different, we agree to disagree and eventually make up. Sage has a wide range of robust Accounting & ERP and Payroll & HR solutions for all markets segments. Powerful reporting and integration tools! Thank you for the commitment... and yeah let me whisper this into your ears "I know I am your preferred in Ghana if not West Africa" and I don’t take this privilege lightly neither will I be complacent least somebody from nowhere will dare to take it … *winks* 


THE FOUR ACCOUNTING TASKS EVERY SMALL BUSINESS MUST KNOW

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In order to manage effectively and wisely, there are four accounting tasks every business owner must know and put in place for business success.
1. Setting up an Accounting System
The very first task is to set the accounting system for the business. An accounting system is simply a process or a procedure that tracks and reports the day-to-day financial transactions of your business. The transactions will usually originate from the key accounting cycles (Payable, Receivable, Inventory and Bank) and supported by documents such as purchase orders, goods received notes, invoices, receipts, deposit slips, cheque books etc.
An accounting system can be prepared manually with a notebooks, Microsoft Spreadsheet programs or a well-tailored and already designed accounting software.
 It is important to understand that the system you adopt will ultimately determine the volume of data you track, how the tracking is done and the reports that are being prepared! Thus, it’s necessary to engage the assista…

FIVE THINGS THAT WILL MAKE YOU RECEIVE PAYMENTS FASTER

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There is nothing more painful in running a business than when you have delivered the orders, but your money is not being paid and you need more cash to operate your business. When this happens, you need to go to the school of collecting accounts receivables. Well, this is the school where we learn the five things that will enable you receive payments faster.
When you run a business and your payments come in time, you have cash available to cover all your operational expenses, then, aiding your business run smoothly like an oiled machine. Sadly, this is usually not the case in practice because customers are not always predictable and entrepreneurs are also inadequately prepared to deal with such kinds of customers.
Many a time, business people are so busy delivering their services and keeping customers happy to the total neglect of equally important activities such as account receivable collections. If you don’t have anybody do the collections job, the job never gets done! That’s simple!…

CREATING FINANCIAL STATEMENTS USING SAGE ONE ACCOUNTING

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Creating financial statements using Sage One Accounting is one of the simplest to-do things in small business accounting. With Sage One Accounting perfectly designed for small business businesses and start-up companies, creating financial statements is no more a tedious and tiring process again!
First of all, what the heck are financial statements?
Financial Statement as defined by Business Dictionary is “Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what its current financial position.”
As report card is used by schools to access a student’s academic performance, the financial statement is also used to access the business’ financial performance, profitability and creditworthiness.
The financial statement of a business usually consists of:
·Income Statement/ Profit & Loss Statement: this shows the gross and net profit of a business over a period of time in transacting business activities.
·Balance Sheet: thi…

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