SME’s to employ professional accountants

Pilot project to start in HuyeSOUTHERN PROVINCE HUYE— The Private Sector Federation (PSF) has plans to avail services of professional accountants to Small and Medium –scale Enterprises (SME’s) in the country, an official said. Molly Rwigamba, an official of PSF in charge of capacity building announced this during a consultative meeting held in Huye district last Friday. The meeting that brought together business persons in the district, Rwanda Revenue Authority (RRA) and private sector officials was meant to agree on modalities for the implementation of a pilot project in Huye. According to Rwigamba, a survey carried out by the PSF showed that most business persons encounter problems in keeping their account books in order, a situation which antagonises them with tax authorities. “The survey showed that most SME’s – with a turn over rate of at least Rwf20million do not employ qualified accountants. Consequently, they have had to pay flat rates to RRA because of the failure to declare their tax returns,” said Rwigamba, adding, “It is difficult for such businesses to acquire bank loans.” “Through our business development service networks, we intend to help these SME’s enlist services of professional accountants to alleviate this problem,” she added. According to Rwigamba, professional accountants will be hired from the Association of Certified Accountants with one accountant serving at least 10 businesses. “This will make it cheaper because the costs will be shared out,” said Rwigamba. Under the arrangement, PSF will provide office space and any other facilitation to the resident accountants while the RRA will provide training on what is expected of them in their work. “It is high time our business persons changed the way they do business. Entrance into bigger markets like that of the East African Community requires a change from the traditional ways of doing business,” said Peter Ruyumbu, RRA Commissioner in charge of Quality Assurance. “Enlisting the services of professional accountants is a must for all businesses and the Rwanda Revenue Authority is supportive of initiatives to promote it,” he added. There were mixed reactions, from business persons to the new development. While some welcomed the move, others expressed reservations, saying it would be too costly for their businesses. “Any business worth its name has to have an accountant to do daily book keeping. This will also require the services of a certified accountant to approve the work of your accountant,” remarked a prominent accountant and business man in Butare town. Ends