Rwanda Revenue Authority (RRA) will today sign a memorandum of understanding with the Private Sector Federation worth $18,500 in a bid to provide financial management support to Small and Medium Enterprises (SMEs).
The signing ceremony will take place at RRA headquarters in Kimihurura this afternoon, according to a statement from the tax body.
According to the agreement, the funds will support SMEs in preparing their annual financial statements through the Business Development Services (BDS) Networks’ Resident Accountants using tailor-made software.
“The move will also address the scarcity of professional accountants in Rwanda and the high cost associated with employing professional accountants by SMEs,” reads the statement.
RRA will not only provide funding to the initiative, but will register them as official tax advisors annually at no charge.
The private Sector is expected to recruit Resident Accountants to serve in each BDS Centre through a competitive process and train them on tax verification methods and techniques.
According to the agreement, the Private Sector will organize a workshop for Resident Accountants, identify a firm to provide the financial management software and provide office space to the accountant in each BDS Centre
“After training, every resident accountant will be placed in each BDS Centre to provide financial management support to the business community in each respective district” reads part of the agreement.
Less than 10 percent of the SMEs in Rwanda prepare annual financial statements and most of them do not know whether they make a profit or loss at the end of their financial year, thus hindering their filing of tax returns to the RRA.