BCG Matrix for Small and Medium Enterprises

SMEs face the challenge of implementing an effective growth strategy. BCG matrix is a strategic planning tool developed by the American firm, Boston Consulting Group to aid businesses in implementing a growth strategy.  The matrix provides a sound basis for evaluating products and strategic business units(SBU) thus helping a firm to ascertain the current and future value of each unit. As a result, a business can…

Continue Reading

The Product Life Cycle Concept

The product life cycle concept follows the stages of a product from its inception to its decline. This cycle guide strategy formulation as each stage calls for a different action.  The concept provides valuable insight to companies that introduce a new product as it supports the comprehension of profit, cost, and revenue trends in a competitive environment. The Product life cycle plots revenue and profits in…

Continue Reading

Outsourcing Payroll Processing: Kenyan SMEs

Payroll processing refers to the process of computing employee pays. Its inputs are the total worked hours, deductions, and pay rate among other elements. The end products of the process are net pay figures, statutory deductions and their submission to the relevant authorities, and summarised reports. SMEs in Kenya face the challenge of processing payroll due to their inability to hire professional accountants on a fulltime…

Continue Reading

Can the Housing Element of the Big Four Agenda Lead Kenya into a Financial Crisis?

In September 2018, the central bank governor Patrick Njoroge was quoted saying that poor corporate governance in the banking sector can lead Kenya into a financial crisis.  His sentiments are not far from the truth since significant banks have come down due to poor corporate governance.  Chase Bank and Imperial Bank are perfect examples of how poor management can trouble Kenya’s financial sector. Although bad corporate…

Continue Reading

Roles, Responsibilities, and Duties of an Accountant: An insight for Kenyan SMEs

Kenya’s business environment is dominated by small and medium enterprises (SMEs) that account for over 90% of businesses in Kenya and create around 80% of the total employment.  Businesses under this category especially the small and micro enterprises do not engage professional accountants due to their constrained resources and the lack of knowledge. As a result, their businesses get in trouble due to the failure to…

Continue Reading

What Determines the Value of a Currency? Kenya Shilling Exchange Rate

Just like other commodities, currencies are traded in a market known as the foreign exchange market.   Globalisation of trade has necessitated the establishment of a platform through which currencies can be traded to facilitate international transactions. The exchange rate is either determined by the market forces or fixed by the government. The rate determined by the supply and demand forces is known as a freely floating…

Continue Reading

KRA Tax Incentives for Investors

Kenya Revenue Authority (KRA is always under pressure to collect revenue to reduce the budget deficit.  An increase in revenue empowers the government to implement projects in line with its mandate of improving people’s lives. Despite this pressure, KRA gives tax incentives to investors to encourage investment activities.  The amount of revenue collected by the tax authority is directly related to the growth of investment making…

Continue Reading

What is a feasibility study?

A feasibility study is an analysis that seeks to identify the viability of a project. It protects businesses from investing in projects that are not viable thus averting losses. Organisations face many opportunities that necessitate investigation aimed at identifying whether they are worth exploiting. Examples of projects that require feasibility study include a new product, plant establishment, and a new branch among others. Besides identifying whether…

Continue Reading

Writing a Good Donor Funding Proposal

Donor funding proposals are used for soliciting funds from donors. Non-profit organisations play an important role in the society as they address problems not being sufficiently solved by government agencies and businesses. Projects implemented by these organisations are funded by donors who need to be persuaded.  The ability to bring donors on board depends on the quality of a funding proposal. It is therefore imperative to…

Continue Reading

Registering a Company in Kenya

Entrepreneurs experience difficulties when deciding on the right form of business.  A limited company is the most preferred business form when it comes to profit-oriented organizations. Registering a company creates some benefits that are absent in other forms.  Besides a company, other forms of business organisation include sole proprietorship, partnership, corporations, and cooperatives.  Company registration requirements in Kenya include a national identification card or passport, coloured…

Continue Reading

Writing a Winning Business Proposal

A business proposal is a persuasive document prepared to convince a client to buy a product. The success of a business is pegged on the ability to convince clients to buy its products. Preparing a business proposal is, therefore, a defining moment as it has a direct impact on profitability.  Sufficient research is imperative before writing a proposal to ensure the acquisition of in-depth information about…

Continue Reading

Why Your Business Needs to Register With KRA For VAT and Comply With Regulations

VAT is a tax on consumer expenditure that was introduced in 1990. Effective tax management is a key business success factor. It involves implementing strategies aimed at ensuring the tax does not adversely affect the pricing strategies and also ensuring compliant to avoid unnecessary fines.   Engaging a tax consultant on matters VAT management enables a business to exploit the opportunities presented by the tax and at…

Continue Reading

How to write a business plan.

A business plan is a document that shows  where a business wishes to go and how to get there. Emphasis is put on proving that goals are achievable thus necessitating providing information about factors that influence the firm’s ability to realize these goals. Also, it shows how the firms position itself favourably in the face of competition and environmental forces to ensure it accomplishes its purpose. A…

Continue Reading

Understanding How KRA Zero rated VAT Works

Accounting for VAT requires a sound understanding of how the VAT concept works.  Failure to apply the right rules when calculating the tax liability can lead to fines which are detrimental to profitability.  The Kenya Revenue Authority (KRA) provides a clear guidance on accounting for zero-rated and exempt goods. Zero rating refers to the supply of goods taxable at the rate of 0%.  Suppliers of these…

Continue Reading

Why Should Kenyan Small and Medium Enterprises (SMEs) Outsource Accounting Services?

Businesses in today’s environment have embraced outsourcing accounting due to its positive impact on performance.  Outsourcing is concerned with contracting an external entity to perform non-core functions in the business process.As a result, the organization avoids maintaining an internal department to perform the concerned function. The accounting function is non-core in a business process and SMEs can outsource accounting services to enable them to focus on…

Continue Reading
Close Menu