WHY Every Ghanaian SME Should Ditch Manual Accounting For Cloud Accounting Software
Head of Finance &
Accounts and Tax Lead,
Ferfed Business Consult Limited.
If you run a small business in Ghana, whether it’s a provisions shop in Madina, a printing press in Kumasi, a transport company in Ashaiman, or a food joint in Cape Coast, you might still be managing your accounting manually. You could be jotting down sales in a notebook, using Excel, or even keeping receipts stuffed in a drawer.
However, I need to be honest: Relying on manual accounting can slow down your business.
As a Chartered Accountant who collaborates with businesses of all sizes daily, I can confidently say that investing in simple cloud accounting software can save you time, minimise errors, and support your business growth.
Here are some important reasons why you should consider getting cloud accounting software for your business:
1. You’ll Save Time and Work Smarter
Manual bookkeeping can be a time-consuming task that detracts from your ability to attract new customers and manage your business operations effectively. Activities such as calculating expenses, preparing profit-and-loss statements, and manually balancing your books each month can become overwhelming.
Utilising accounting software, such as QuickBooks, Sage, Built Accounting, ZohoBooks or Wave, can significantly streamline this process. With these tools, you can:
● Enter data just once, eliminating redundancy
● Automatically update all your reports with the latest information
● Access real-time summaries for quick decision-making
By implementing accounting software, you can transform the hours spent on bookkeeping into just minutes spent preparing financial reports, allowing you to focus more on growing your business.
2. Fewer Mistakes, Fewer Headaches
When working manually, it’s common to encounter mistakes. Even a small error in addition or the transcription of numbers can impact the accuracy of a report significantly.
Utilising software can greatly reduce these risks by:
● Automating calculations, ensuring precision
● Identifying inconsistencies that might go unnoticed
● Facilitating more accurate tracking of income, expenses, and inventory
This is especially crucial when preparing your GRA taxes, as even a single incorrect figure can result in penalties or audits.
3. Know Your Business Numbers at Any Time
Cloud-based accounting software allows you to monitor your business performance from anywhere, whether you’re using a phone or a laptop. This flexibility means you can stay informed about your financial status even while on the go.
For instance, whether you are travelling to the village, meeting a supplier in Abossey Okai, or navigating through Accra traffic, you can easily check your weekly profits, track customer debts, and identify your best-selling products.
This accessibility empowers business owners to make informed decisions in real-time.
4. Helps You Manage Staff and Prevent Fraud
For small businesses, constant oversight can be a challenge. Employees may be managing various functions such as sales, cash handling, and purchasing, which leaves room for potential discrepancies if safeguards aren’t in place.
Utilising accounting software is essential in this context. It provides several key benefits:
● It maintains accurate records of financial transactions.
● It tracks accountability by logging who performed specific actions and when.
● It restricts access to sensitive information, enhancing security.
In essence, accounting software serves as an effective oversight tool, acting as a reliable guardian of your financial activities, especially when you’re unable to monitor
5. It’s Cheaper Than You Think
Many small and medium-sized enterprise (SME) owners think that software solutions are expensive, but that’s not the case anymore. Here are some options available:
● Free versions for very small businesses
● Affordable monthly plans (some as low as GHS 300/month)
● Local accountants (like us at Ferfed) who can help set it up for you
In fact, using the right software can help you save money by:
● Avoiding tax penalties
● Reducing the need for full-time bookkeeping
● Identifying financial issues early, before they escalate
6. Look More Professional to Banks and Partners
When seeking a loan from a bank or approaching potential investors, the presentation of your financial records can significantly impact their perception of your credibility. Handwritten records may lead to hesitation, whereas neatly organised, system-generated reports convey professionalism and reliability.
Utilising accounting software can greatly enhance your financial documentation by providing:
● Bankable financial statements that meet institutional standards
● Clear and concise invoices that reflect professionalism
● Tax reports that are well-organised and likely to impress tax officials
Investing in accounting software not only streamlines your financial processes but also enhances your overall business credibility.
Final Word: It’s Time to Level Up
Small businesses play a crucial role in Ghana’s economy, yet it’s essential to adapt to current trends. Relying on manual records is outdated. To facilitate growth, secure financing, minimise tax-related stress, and save time, implementing accounting software is highly beneficial.
At Ferfed, we collaborate with a diverse range of SMEs, from food vendors to haulage companies, to establish straightforward and cost-effective accounting systems tailored to their specific needs. It’s not necessary to begin with a large-scale solution; starting small is perfectly acceptable.
About the Author
Richard Boadi is a Chartered Accountant and the Head of Finance & Accounts and Tax Lead at Ferfed Business Consult Limited. He supports small businesses in Ghana with accounting systems, tax compliance, and financial strategy that help them grow and succeed.
