Pay yourself a salary, don't spend from business cash flow – Entrepreneurs told

Priscilla Yeboah, Head of Citizenship at Absa Bank Ghana Limited, has cautioned that poor financial discipline continues to hinder growth and prevent many enterprises from accessing credit.

She explained that businesses often collapse prematurely because owners treat business income as personal income, making it difficult to track profitability, build savings, and qualify for financing.

According to her, businesses should intentionally save for equipment maintenance, unexpected expenses and future investments rather than relying on borrowing during periods of stress.

“Every business has the goal to grow. The goal is to scale up. The goal is to become a bigger company,” she said.

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Speaking on Channel One TV on Monday, June 15, 2026, she said entrepreneurs must deliberately pay themselves a salary from the business and avoid drawing directly from business cash flows for personal expenses.

“Make sure once you are running a business, and you call it a business, take your salary out of whatever work you have done. Pay yourself,” she advised.

According to her, separating accounts is not merely an accounting exercise but a business survival strategy.

“Trust me, a lot of Ghanaian small businesses die prematurely because of this because they just plainly refuse to separate their personal finances from their business monies,” she stated.

She also explained that mixing transactions makes it difficult for financial institutions to assess business performance and provide financing.

“We see accounts that good monies come through, but they are not able to access credits because they are not consistent. The financial history doesn’t speak to just the business,” she noted.

She argued that maintaining dedicated business accounts creates clearer financial records, strengthens credibility, and improves access to lending.

She further encouraged businesses to adopt structured savings habits, including automated transfers, emergency funds, and goal-based accounts to support expansion and protect operations during shocks.

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