SMEs urged to register their businesses

Mr Noble Yaotse Adonoo, Managing Partner, AKA and Partners, has encouraged Small Medium Enterprises (SMEs) to register their businesses to qualify for various assistance including accessing loans to expand their businesses.

He noted that most SMEs were not registered and as well lacks bookkeeping records of their operations, making it difficult for would-be investors and financial institutions to evaluate businesses and offer assistance.

Mr Adonoo made these remarks in an interview with the Ghana News Agency (GNA), on the sideline of a seminar organised by the Faculty of Accounting and Finance (FAF) of the University of Professional Studies, Accra (UPSA).

The seminar which was part of activities marking the 2018 FAF Professional Week Celebration was aimed at training some SME players within the University’s catchment area; on the need to register their businesses, proper book-keeping practices and accessing credit facilities.

Mr Adonoo told GNA that some of the benefits of keeping a proper account were that the individual is able to trace his or her inflows and outflows; adding that “it helps you to make decisions on time as to whether you are actually benefiting or making losses”.

He said currently what the government was trying to do was that once you register your business, one would be able to get a tax identification number and social security registration at the same time, whereas, recognition by local authorities would also be facilitated.

Mr Adonoo said the participants expressed certain concerns that cost of registering businesses was so high, the delay in registration process and Ghana Revenue Authority’s (GRA) demands from SMEs were so high, discouraging some SMEs from paying taxes.

He said however, an improper bookkeeping indicating inflows and outflows may affect how GRA would also access the business.

Mr Adonoo said he was hopeful that with continuous education and support SMEs would be able to grow.

On behalf of AKA, he pledged to make themselves available to support participants so far as registering businesses, keeping proper account records and filing of taxes were concern.

Dr Raymond K. Dziwornu, the Dean of FAF, UPSA, also told GNA one of the challenges the participants encountered, was not having the requisite skills to be able to manage their businesses well.

He said as a Faculty that trains students in accounting and finance, the initiative was among its corporate social responsibility.

“Our core value as a university is service; and the service we are rendering is not to students alone but the community that we operate in," he said. Dr Dziwornu said there were a number of topics to highlight, however with the maiden edition, they were focusing on ‘keeping financial records’ because participants needed to know the day to day operation of their businesses.

He described proper accounting records as a document that will help businesses get assistance from banks adding that filing of taxes was another challenge that needed to be addressed.

Dr Dziwornu said as part of the training participants were also taken through the development of a good business plan.

He said based on the response gathered the Faculty would create a desk to support participants who might have challenges.

“We intend to get on students on internships and assign them to help these businesses, to help them keep books of accounts," he said.