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Running a small business is demanding. Each day presents challenges that can affect your cash flow, your customers, and your ability to grow. Amid these demands, it is easy to lose sight of long-term financial priorities. However, businesses that last are not only those with good products or strong customer service. They are often the ones with better financial habits. This article outlines seven essential points that will help SMEs manage their finances more effectively, reduce risk, and plan for growth. 1. Start with a Clear Financial Plan A good financial plan gives direction to your business. It helps you set targets, allocate resources, and make informed decisions. Start by defining your financial goals. These should be SMART - specific, measurable, actionable, realistic, and tied to timelines. For example, you should determine how much revenue you need each month, what level of production or service delivery is required to meet that target, and how you intend to achieve it. Once your targets are clear, you will need a working budget. A good budget helps you monitor income and expenses, manage cash flow, and ensure that your business remains on track. It also provides a basis for deciding what to prioritise and what to postpone. At its best, your financial plan should help you answer key operational questions such as what resources are required to operate or grow, where those resources will come from, what they will cost, and whether your business is in a position to take them on. Planning in this way reduces uncertainty and allows you to run your business with greater clarity and confidence. 2. Maintain Accurate Financial Records Accurate financial records are essential for any business. Whether you are managing day-to-day operations, planning for future growth, or applying for funding, clear and reliable financial information allows you to make sound decisions. Many small businesses struggle in this area due to time constraints, limited expertise, or a lack of systems. However, proper record-keeping should never be overlooked. It supports internal decision-making, strengthens external credibility, and improves your ability to respond to opportunities or risks. Business owners can start by gaining basic knowledge of accounting principles and tools. Training employees in simple record-keeping practices also helps to build internal capacity. In some cases, it may be worthwhile to engage professionals who can help you put the right systems in place and prepare essential reports at a cost that makes sense for your business. 3. Choose a Banking Partner Aligned with Your Goals The right banking relationship can make a real difference to your business. A bank like Absa Bank is more than a place to keep your funds. It is a partner that can support your operations, guide your financial planning, and help you take advantage of growth opportunities. Begin by understanding your business needs. These might include working capital support, payments and collections services, or trade finance. Once your needs are clear, assess whether your bank offers the right mix of services, accessibility, and expertise. Your banking partner should make it easier to run your business, not harder. They should share your ambition to grow, be responsive to your concerns, and provide solutions that are tailored to the stage your business is in. A strong banking relationship will give you confidence and peace of mind as you build your enterprise. 4. Deploy Effective Payment Solutions Revenue is the foundation of every business and the way you go about collecting it is key. In today’s economy, customers expect fast, simple, and secure payment options. If your business only accepts cash, you may be turning away potential sales without realising it. Providing customers with flexible payment options is no longer a luxury. It is a necessity for growth and long-term relevance in a digital economy. Offer customers alternatives such as instant bank transfers, mobile money, card payments through point-of-sale devices, or more innovative solutions like Absa Mobi Tap to improve your customer experience and increase your reach. These methods reduce delays, enhance transaction security, and demonstrate professionalism. 5. Meet Statutory Obligations Promptly Every business has legal and regulatory responsibilities. These include filing and paying taxes, submitting Social Security and National Insurance Trust contributions, and meeting other sector-specific requirements. Complying with these obligations on time helps you avoid penalties and disruptions. It also builds your business’s reputation and improves your standing with financial institutions and regulators. To stay compliant, you should adopt a legal structure that suits your business model and goals. You may also wish to seek legal or tax advice at key points in your journey. Planning ahead for obligations such as annual tax payments or quarterly filings ensures that you are not caught off guard. Meeting your statutory responsibilities consistently is a mark of a well-run business. 6. Manage Your Risks Running any business involves risk. These risks may include delayed payments from customers, unexpected costs, economic downturns, or even natural disasters. For small businesses operating with limited resources, such events can be difficult to absorb. This is why risk management must be part of your financial routine. Start by identifying the main risks that could affect your business. Put in place basic measures to protect your operations. This could mean setting aside emergency reserves, purchasing insurance, or diversifying your income streams. Being proactive about risk does not eliminate uncertainty, but it helps you stay in control when challenges arise. It also signals to lenders, partners, and customers that your business is prepared and resilient. 7. Separate Business and Personal Finances It may be tempting to treat your business account as your personal wallet, especially in the early stages. However, failing to separate your business and personal finances can lead to confusion, tax problems, and credibility issues. As a business owner, you should pay yourself a fixed salary. Avoid withdrawing funds at random or covering personal expenses with business income. If you invest personal funds in the business, document it properly as a loan or equity contribution. Keeping your finances separate helps you maintain clear records, assess business performance accurately, and present your enterprise in a more professional light to partners, banks, and regulators. At Absa Bank, we believe that strong financial habits form the backbone of every successful enterprise. Our commitment is to walk with our clients and customers at each stage of their journey, providing guidance, tools, and solutions that help SMEs grow sustainably and with purpose.

Financial Habits Every SME Must Adopt: The 7-Point Check List

September 25, 2025
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Islamic SHS riots: Police Service lied; sack Director of Urban Roads – Parliament’s fact-finding mission

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Ken Agyapong

Ken Agyapong

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A fact-finding mission by Ghana’s Parliament has revealed that officials of the Ghana Police Service gave a false narrative of the circumstances leading to the riots at the Islamic Senior High School in the Ashanti Region on June 13, 2022.

According to the Defence and Interior Committee which presented its report to the House on Thursday, July 21, 2022, there were genuine concerns over the credibility of the Police Service’s version of events on the day and recommended the House sets up a bipartisan committee to probe further.

Some 25 students of the school were hospitalised after Police opened tear gas on them while they were protesting frequent crashes of pedestrians in front of the School.

The angry students massed up on the road in protest, at what they described as the daily knockdown of students and called for the construction of speed ramps on that section of the road.

Subsequently, the Speaker, Alban Bagbin tasked the Defence Committee to probe the incident and report to the plenary for further action to be taken.

Presenting the report, Chairman of the Committee, Kennedy Ohene Agyapong, said when they engaged the police at the centre of the incident, they realized the inspector was not forthcoming with his answers.

“When I was asking questions I realized the Inspector was reluctant. I asked several times, did you the police officers enter the campus, and they all said no. We couldn’t probe further, however, as the referral had a limit. So we ended there when we realized they were not telling us the truth and were not giving us the whole picture.”

“That is why we came back asking the Speaker to set up a bipartisan committee and give them another opportunity to investigate further so they can question the police very well.”

The Assin Central MP also disclosed the Committee was tasked to consider compensation but noted the Speaker’s referral was not limited only to the Islamic SHS but goes back to 1992, which makes it a bit daunting.

He, however, assured they have started something, which could provide a basis for further work on these matters.

According to him, 38 students were injured in the incident and the condition of one was so serious that she still finds it difficult to breathe adding, “And they didn’t have money so I gave her GH¢5,000 to go to the hospital for further check-up.”

The Committee, he said, cannot, however, determine the amount of compensation to be given to the affected individuals.

The report also recommended the Urban Roads Director in the Region be relieved of his post because evidence showed the Headteacher of the school had been officially complaining about the situation since 2012 with the latest letter being delivered in September 2021.

According to him, the current Director may not have been in office when the school started petitioning the authorities but stressed that is why the Committee recommended the Director who was in office as of September 5, 2021, be sanctioned.

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