The Covid-19 Recovery and Resilience Program is an initiative by KEPSA, aimed at supporting MSMEs to build resilience and equip them with skills to navigate the effects of Covid-19. Through this program, which is supported by Mastercard Foundation, businesses have received free training and mentorship sessions on various topics of interest to their businesses.
In the last session that took place last Friday, the MSMEs joining from different parts of the region including Kenya, Uganda, Tanzania, Nigeria, USA and beyond, had an opportunity to learn financial management skills for their businesses.
Mr. Joseph Nzou, who is an Associate Director in charge of finance in the East Market Area at PwC Limited, trained the participants on the benefits of proper financial management not only to an individual but also to their businesses.
“Financial Management is simply defining your relationship with money; It is how you generate and utilize cash. As you handle your finances you must have a plan, you must understand your operating environment and you must know the right time to go for the kill in investment”, said Mr. Nzou.
He further elaborated the importance, of having a business structure and client base, as well as understanding the legal requirements around the nature of your business. Adding that knowing the government regulations even before one venture into the business is key.
“Beyond having a financial plan, it is fundamental to have proper record keeping. This will help you know the amount of tax you need to pay and measure the performance of your business against your plan.
With records, you are able to make informed decisions as they give accurate information even to other stakeholders. You need to close your books within a certain period of time. This will easily help you track your business performance through financial statements, added Mr. Nzou.
He further stated the importance of understanding one’s clients’ payment cycles as receiving early payment in business enables one to fund their operations appropriately.
“It is important to pay yourself first, designate a figure as your salary so that you can fund your lifestyle separate from the business finances. Put in place policies that run your business in an efficient way.” Mr. Nzou said.
The financial management expert urged MSMEs to work on developing the right networks around their business and create business goodwill with all stakeholders.
You can WATCH the full session here: https://youtu.be/xQm2U-LMiGw and remember to SUBSCRIBE to the channel.