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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. 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Approval of 2021 budget: we didn’t feel taxes were justified but… – Clement Apaak

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Nana Addo has broken his oath to protect public purse-Dr. Apaak
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The Member of Parliament (MP) for Builsa South, Clement Apaak, has revealed that the National Democratic Congress (NDC) would not have allowed the approval of the 2021 Budget Statement and Economic Policy of Government if they had the numbers in parliament.

He explained that the party was not so pleased with the introduction of levies and taxes in the 2021 Budget but could not do so much about it as three of their members were absent on the day of voting on the approval of the Budget.

READ MORE: Kasoa Murder: Alleged Killer expected to be rich by Easter Monday – Friends reveal

In an interview with Raymond Nyamador on the Happy Morning Show, he shared: “When we voted on the approval of the Budget, the NDC we had 134 and the NPP had 137. So, we really did not approve of the Budget. If we had wanted to readily accept it the speaker would have made a voice vote but we called for a division because we had serious challenges with the content of the budget. We didn’t feel the taxes were justified particularly so that COVID had brought in a lot of hardships to Ghanaians and we are still facing these hardships.

Not too long ago, the Government acknowledged that indeed there was hardship and it provided free water and electricity and so what changed in just three months. You’ve increased the price of fuel, NHIL is increased, VAT is increased, now you even introduce the Borla tax and health tax. So, all those who have lost their jobs how they pay for all these?”.

Clement Apaak noted that based on all these, the party decided not to approve the budget.

READ MORE: SHS 3 reopening date postponed under false pretence – Clement Apaak

“But what happened was that one of our members was down with COVID, and two lost their family members so they had to go to the funeral. One of them lost his son in a KNUST accident so he was not present. So, if the three were present it would have been a tie. This is because the independent candidate was not present to vote. So, we didn’t readily accept it. We made clear all the things we didn’t approve of. If we hadn’t even approved, the Government would have come to a standstill and a halt. But earlier if we had the numbers, we could have made a difference that could not have been harmful to the nation’s state”, he further explained.

On Friday, March 12,2021, the Caretaker Finance Minister, Osei Kyei Mensah Bonsu presented the 2021 Budget Statement and Economic Policy of Government on the floor of parliament, detailing the Government’s programmes and policies for the year.

READ MORE: Kyei Mensah Bonsu is uncomfortable with Alban Bagbin’s position – Clement Apaak

The Budget Statement and Economic Policy for the 2021 fiscal year was subsequently debated on and approved by Parliament, after heated arguments from both sides of the House.

By: Alberta Dorcas N D Armah

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