- Accountants urged to help MSMEs improve financial management
- Better records can help businesses unlock credit and growth
- Tally MSME Honours celebrate resilient and innovative enterprises
Professional accountants have been challenged to take a more active role in helping small businesses improve their financial management, access financing and build enterprises that can withstand the challenges of the market.
Institute of Certified Public Accountants of Kenya (ICPAK) Board chairperson Elizabeth Kalunda said accountants should not limit their work to compliance but should also provide strategic guidance to entrepreneurs seeking to expand their businesses.
She said proper financial discipline was critical to the survival and growth of small enterprises, particularly those struggling to access credit because of weak or incomplete financial records.
“What separates businesses that grow from those that stall is rarely luck; it is discipline: the discipline to track what comes in, what goes out, what is owed, and what is owned,” she said.
Kalunda was speaking during the Tally MSME Honours, which brought together entrepreneurs, business leaders, policymakers and other stakeholders to recognise enterprises for innovation, resilience, growth and social impact.
The event was attended by Tally Solutions Africa head Ashutosh Mehrotra, Kenya Territory head Julius Amara and KASNEB chief executive Nicholas Letting, among other guests.
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Kalunda noted that micro, small and medium enterprises remain an important source of employment and economic activity, with Kenya having more than 7.4 million MSMEs employing nearly 14.9 million people.
However, she said millions of businesses remain outside the formal economy, making it difficult for them to access financial services and other opportunities.
She identified access to credit as one of the major challenges facing MSMEs, noting that lenders often require reliable financial information before advancing loans.
According to Kalunda, professional accountants can help businesses address the problem by assisting entrepreneurs to maintain proper books of accounts, monitor cash flows and prepare credible financial statements.
“An accountant is a translator, standing between the entrepreneur and the bank or investor,” she said.
She also highlighted the Unique Document Identification Number (UDIN), a system introduced by ICPAK to help verify financial statements and audit opinions prepared by licensed accountants.
The system uses a QR code and serial number, allowing users to establish the authenticity of documents issued by practitioners.
Kalunda further called on entrepreneurs to improve governance by separating personal finances from business accounts and putting in place proper management and succession structures.
“Growth without governance is a short story,” she said.
She also encouraged businesses to embrace digital accounting tools to improve record keeping and support informed decision-making.
Kalunda said technology should complement rather than replace the professional judgement of accountants.
“Technology should not replace the accountant’s judgement; it should free it. Let the system handle the recording. Let the accountant handle what the numbers mean,” she said.
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The Tally MSME Honours recognised businesses across various categories, including entrepreneurship, technology adoption, women-led enterprises, youth-led businesses and social impact.
Blueberry Voyage Limited, Recolte Limited, Deylin Ultimate Springs and Electroplanet Home Appliances and Electronics were among those recognised in the Business Maestro category.
The Wonder Woman category honoured Ilonito Designer Collections, Emerald Hues Limited, Daynix Enterprises and Agri-Aqua Trail Women and Youth Innovators.
Samuel Mwangi of Kiy Toys Limited and Emmanuel Obuya of Mediacrest Training College were recognised under the Newgen Icon category.
Qareen International Investment Limited, BigBrainz Solutions Limited and Boafo Solutions were recognised as Tech Transformers for using technology to improve their operations.
Acosein Global Eco-Health-Tech and Sunflower Events (K) Ltd received recognition under the Champion of Cause category.
Mehrotra said the awards were intended to recognise entrepreneurs whose businesses continue to create jobs and respond to challenges through innovation.
“The Tally MSME Honours are about celebrating the entrepreneurs who are creating jobs, solving problems and building businesses despite the challenges they face. Their stories demonstrate what is possible when innovation, determination and the right business tools come together,” he said.
Amara said the recognition was also meant to encourage other entrepreneurs to pursue sustainable growth while demonstrating the value of proper financial records and technology.
“Every business recognised tonight represents a story of resilience, innovation and growth. We want to celebrate these entrepreneurs and also inspire thousands of other MSMEs to believe that they too can build sustainable and successful enterprises,” he said.
The discussions also highlighted the need for policymakers and regulators to make business formalisation easier and more beneficial for entrepreneurs.
Kalunda said the enterprises recognised demonstrated that sound financial practices, professional advice and appropriate technology could help small businesses grow into sustainable ventures.
By Jonathan Mwinzi
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