[ 2015-06-01 ]

SMEs advised to invest in book-keeping for growth
Small and Medium Enterprises have been advised to
invest in book-keeping if they want to see their
businesses grow steadily.

The sector contributes at least 70 percent of the
country’s GDP. Their catalytic impact on
employment can therefore not be over-emphasized.

The growth of the sector is however hampered by
the lack of book-keeping skills. This according to
Accounting Consultant, John Yeboah can be
addressed if SMEs invested in keeping records of
all transactions.

He was speaking at the first in the series of
national seminars being organised by ABII National
Savings and Loans Company Ltd to train some SME
players on proper book-keeping practices.

Some of the participants who spoke with JOY
BUSINESS said the training has been enormously
beneficial to them.

One of them recounted occasions where his clients
had called him asking that he provides them with
various spare parts but unfortunately could not
readily tell whether or not he had them because he
simply cannot keep records of the spare parts he
sells.

“Although in most cases I know I have sold so
much, at the end of the month, the money in my
account does not reflect it. Book-keeping is a big
problem for me because I cannot even spell the
names of the spare parts” the uneducated
gentleman lamented.

According to him, sometimes he felt strongly that
he had stock but the items could not be found, a
situation which usually creates confusion among
his co-workers.

Some of the players indicated that they cannot
afford to engage either book-keepers or
accountants in their operations since their
revenues are not that impressive.

But Mr. Yeboah wants SMEs to invest in
book-keeping as they do with the other aspects of
their businesses.

According to him, understanding every aspect of
the business is key to the success of the
business. “If you have a business you should
invest in book-keeping as you do with purchases
and sales because the survival and growth of your
business depends on it” he emphasized.

He wants SMEs to periodically arrange to hire
external persons with the expertise to train them.
He suggested that “if you don’t have an
in-house person who understand book-keeping
procedures, within one year, you would have learnt
a lot – at least the basics that would help you
keep your books.”

He reiterated that a lot more growth could be seen
in Small and Medium Enterprise if books are
properly kept.

Source - MyjoyOnline

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