Safarisoft SME Accounting System

Safarisoft has developed an SME accounting system as per the IFRS SME financial statements guidance notes for distribution to SMEs  where the SME owners will only be required to be keying in their sales and purchases at any particular time and the other financial statements are generated automatically to generate financial accounts. The objective of this system is to provide the SMEs with an accounting system where the owner will not be required to be an accountant for him/her to operate. He/She will only be required to know how to read and write in order to operate it.When an SME Entrepreneur is starting a business, designing accounting process is important. With well-defined automated account processes and account procedures in place, an SME will increase efficiency and get the business started right with the right business accounting procedures as per the laws. 

When an SME Entrepreneur is starting a business in Kenya, designing accounting process is important as required by the Kenyan Companies Act, 2015 and Tax regulations in the country . With well-defined automated account processes and account procedures in place, an SME will increase efficiency and get the business started right with the right business accounting procedures. When it comes to accounting to be done as required by regulations, most SMEs enterprises in Kenya normally face challenges in generating financial statements as most are not trained as accountants, and are even not willing to hire an accountant as the cost is prohibitive. So they normally have a wait and see attitude on what could happen to them when caught by the authorities and in most cases, when they are caught up, they end up closing their businesses as the ramifications especially in areas to do with penalties are huge. Kenya has 7.4 Million SMEs in operation and these are set to benefit from the Safarisoft SME system

Safarisoft did a research and found out that SME owners do not need to be accountants or even hire one in order for them to generate financial statements for their businesses. Our research found out that in a typical SME in the country, transactions are normally in the following areas; Capital invested into business, Gross Sales where payment is made either with Cash or Cheque, Payment of VAT from gross sales to the Kenya Revenue Authority, Purchases for the business where payment is made either with Cash or cheque, Monthly payments like Rent Payment, Salary Payment to staff, Pay As You Earn(PAYE) to the Revenue Authority, Social Security to National Social Security Fund(NSSF) and Hospital Insurance to the National Hospital Insurance Funds ( NHIF) payments every month, Payments for other office services like office tea, Drawings either for personal use or Office use, Cash deposits into Bank from Business and deferred payments transactions involving Accounts Payable and Receivable where payment is to be done in future and finally Payment of Income tax to Kenya Revenue Authority which normally require financial statements of the Balance sheet and Profit and Loss before the payment.This SME system is fully automated with these processes.

The Target population are the SME owners in Kenya who are 7.4Million.In Kenya, the Small and Medium Enterprises (SMEs) play a key role in economic development and job creation. The Kenya National Bureau of Statistics (KNBS) points out that 81 percent of jobs created in Kenya in 2019 were dominated by these SMES. Kenya National Bureau of Statistics (KNBS) highlights that the sizes of SMEs are categorized into small (10-49 employees) and medium (50-99 employees) sized establishment. The crucial role of SMEs is underscored in Kenya’s Vision 2030 the development blueprint which seeks to transform Kenya into an industrialized middle income country, providing a high quality life to all its citizens by the year 2030.The objective of this system is to provide the SMEs with an accounting system where the owner will not be required to be an accountant for him/her to operate. He/She will only be required to know how to read and write in order to operate it. This is what they told us they want to have in during our research. 

The Kenyan Companies Act, 2015 and the Kenya Revenue Authority regulations here in Kenya require the owner of SMEs to prepare financial statements for each financial year that give a true and fair view of the financial position of the SME as at the end of the financial Period and of its profit or loss for that year. This system wants to make this processes easier for the SMEs in Kenya as most are not accountants by profession and are even not willing to hire accountants because the cost is prohibitive.

This system is innovative because it provides the SMEs with an accounting system where the owner will not be required to be an accountant or even hire one for him/her to operate. He/She will only be required to know how to read and write in order to operate it. This is better than the current systems like Quickbooks which require one to be trained and hire an accountant for him/her to manage it well.

This is anew new business  process of accounting where the owner will not be required to be an accountant for him to operate.He/She will only be required to know how to read and write to be able to operate it. These processes are on existing excel technologies that are familiar to most people.

The YouTube below video explains:

https://www.youtube.com/watch?v=G87kQsIf-w0&t=1s

When an SME Entrepreneur is starting a business, designing accounting process is important. With well-defined automated account processes and account procedures in place, an SME will increase efficiency and get the business started right with the right business accounting procedures. When it comes to accounting to be done as required by regulations, most SMEs enterprises in Kenya normally face challenges in generating financial statements as most are not trained as accountants, and are even not willing to hire an accountant as the cost is prohibitive. So they normally have a wait and see attitude on what could happen to them when caught by the authorities and in most cases, when they are caught up, they end up closing their businesses as the ramifications especially in areas to do with penalties are huge.So Safarisoft did a research and found out that SME owners do not need to be accountants in order for them to generate financial statements for their businesses. Our research found out that in a typical SME in the country, transactions are normally in the following areas; Capital invested into business, Gross Sales where payment is made either with Cash or 

cheque, Payment of VAT from gross sales to the Kenya Revenue Authority, Purchases for the business where payment is made either with Cash or cheque, Monthly payments like Rent Payment, Salary Payment to staff, Pay As You Earn(PAYE) to the Revenue Authority, Social Security to National Social Security Fund(NSSF) and Hospital Insurance to the National Hospital Insurance Funds ( NHIF) payments every month, Payments for other office services like office tea, Drawings either for personal use or Office use, Cash deposits into Bank from Business and deferred payments transactions involving Accounts Payable and Receivable where payment is to be done in future and finally Payment of Income tax to Kenya Revenue Authority which normally require financial statements of the Balance sheet and Profit and Loss before the payment. The above transactions will then be used to generate Financial statements.This system takes care of all these processes

The current number of people being served-1 SME

The number to be served in one year-3,000SMEs

 The number to be served in five years-7,000,000 SMEs

My goals within the next year is serve 3,000 SMES and in the next 5 years serve 7 million SMEs.

Geographic reach in the whole country

I will use social media and Television for advertisement

Full time staff- 2

Part time staff -2

Contractors-1

We have experieinced the problems faced by the SMEs.

The Association of Micro and Small Enterprises Association of Kenya (AMSEA)Mombasa Branch

The Kenyan Companies Act, 2015 and the Kenya Revenue Authority here in Kenya requires the owner of SMEs to prepare financial statements for each financial year that give a true and fair view of the financial position of the SME as at the end of the financial Period and of its profit or loss for that year. It also requires the directors to ensure that the company keeps proper accounting records that: (a) show and explain the transactions of the company; (b) disclose, with reasonable accuracy, the financial position of the company; and (c) enable the directors to ensure that every financial statement required to be prepared complies with the requirements of the Companies Act, 2015. This system helps SMEs comply smoothly with regulations.

This will be a combination of donations and grants, selling the products and  raising investment capital