Accra: Mr Gilbert Yirenkyi Addo, Associate Director, Business Tax at Deloitte Ghana, has emphasised the non-negotiable importance of record-keeping for the growth and resilience of small and medium enterprises (SMEs). Speaking at the SME Business Interaction Session, Mr Addo highlighted that maintaining accurate records is crucial for the accounting backbone of SMEs, enabling the preparation of necessary documentation and ensuring compliance with legal requirements.
According to Ghana News Agency, the event was organised by Access Bank (Ghana) PLC in partnership with Deloitte, under the theme 'SME Financial Empowerment: An Imperative for Business Resilience'. Mr Addo stressed that proper record-keeping aids in efficient business processes and is a legal obligation under the Companies Act, which mandates that companies maintain proper books of accounts. He pointed out that record-keeping is also essential for filing returns with the Ghana Revenue Authority (GRA) and is a prerequisite for accessing financial facilities such as loans and grants.
Mr Addo explained that banks require tangible data to assess the credibility and risks associated with granting loans to SMEs. He advised business owners to separate personal and business finances, noting that proper record maintenance is crucial for compliance with the Revenue Administration Act, Section 27. Failure to comply could result in sanctions and increased tax liabilities, posing unnecessary risks to businesses.
Highlighting the potential of SMEs to evolve into large companies, Mr Addo advocated for the establishment of proper structures, which are essential for the growth of businesses and the economy. He concluded by underscoring the importance of workshops like the SME Business Interaction Session in fostering business development and economic growth.
