Lack of proper financial records cause of SME shut down

Business

LACK of proper financial records in small businesses cause them to shut down, a small to medium enterprise owner says.
Omega Consultants chief executive officer Emmanuel Masangkay said Papua New Guinea’s small businesses must have proper records of how their businesses were performing.
Omega is a software development, accounting and audit business.
“Obviously, we know that accounting is more important than what we have in our pockets.
“ If we don’t have financial statements, it’s going to be nothing and it’s going to be a big challenge for all our people,” Masangkay said.
He was addressing a group of Masters In Business Administration students at the University of Papua New Guinea on Monday.
Masangkay said problems among small businesses could be avoided if they were tax compliant, had effective books, should know whether they were making a profit or loss, should do stock control, have a cash flow and file tax returns.
He said in the absence of all these, businesses could face closure.

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