The Institute of Certified Public Accountants of Uganda (ICPAU) has called upon business managers running Micro, Small and Medium Enterprises (MSMEs) to acquire basic financial literacy and management skills so as to run successful businesses.
This was during the launch of the two-day probono business advisory services at the 3rd Accountancy Services Week that began Thursday and ends Friday at Uganda Manufacturers Association (UMA) showgrounds in Lugogo-Kampala.
Addressing the media in Lugogo, ICPAU President, Frederick Kibbedi said the Accountancy Services Week (ASW) is organized by ICPAU to provide financial literacy and business advisory services to SMEs and the general public.
Kibbedi said the idea of the service week was conceived in 2017 as one of the ways in which to respond to the growing gap in financial management among SME’s which appears to hamper access to credit and business growth.
“SMEs constitute up to 90% of private business in Uganda. They contribute over 70% towards the Gross Domestic Product of Uganda. These grapple with tax compliance, access to credit, stock management, book keeping and cost management among other challenge,” Kibbedi said.
CPA Chief Executive Officer (CEO), Derick Nkajja said that a number of SMEs do not know how to prepare basic financial records and this has cost them their businesses and growth.
“Without record keeping in business management despite earning a lot profits, money can ruin them; there are enormous benefits of running business with proper financial practises,” Nkajja said.
He noted that during the ASW, participants will have a chance of learning on how to access safe loans and the proper sources of financial help.
ICPAU’s Manager Standards and Technical Support, Charles Lutimba said that a number of SMEs managers do not know how to structure a simple expense or income template for one to determine how much profit they make.
“Differentiating between capital and profit is a major challenge for many SME managers and yet it determines the sustainability of the SME,” he added.