Filing tax returns in Kenya is a mandatory obligation for every registered taxpayer. Section 52B of the Income Tax Act stipulates that income tax accrued in or was derived from Kenya shall be subjected to income tax, regardless of whether an individual is resident or non-resident.
Financial risk is a situation where a business loses money or is unable to meet its financial obligations as a result of poor cash flow management, high levels of debt, changes in exchange or interest rates, and market transactions or investments with a high level of vulnerability.
Accounting and Finance is a vital function in any organization as it has the potential to improve profitability and cash flows. Accounting is a backward-looking function responsible for recording and reporting the cash flow transactions of an organization, while finance is a forward-looking function that advises on the use and mobilization of financial resources to meet the organization’s growth objectives and to maximize shareholder return.
Kenya, like most modern economies, is making use of technology to better streamline its VAT administration. In line with this, Kenya Revenue Authority (KRA) has introduced an electronic Tax Invoice Management System (TIMS) to standardize, validate, and transmit invoices on real time or near real time basis to KRA.
Did You Know? The first accounting software was developed in 1978 when Visicalc and Peachtree Software were introduced. Visicalc was the first spreadsheet software that enabled financial modeling on the computer, while Peachtree Software was an accounting software package for the early personal computer.
Working capital is a critical aspect of any business for the smooth running of its operations and is an indicator of the financial health of a business.
Chasing unpaid invoices can be a time-consuming, stressful and frustrating process for any business. In addition, mounting debt and unpaid customer invoices can cause cash flow constraints for the company as it will be unable to meet its working capital needs.
Optimizing of accounts payable processes can enhance the accuracy of your cash flow forecasts, improve liquidity, mitigate potential funding gaps, and realize higher profits as it increases the efficiency and effectiveness of operations, facilitates reliable financial reporting, and ensures compliance with laws and regulations.
Did you know: The first written text in history was done more than 5,000 years ago and is believed to have belonged to an Accountant who was making a record of supplies. It read, “A total of 29,086 measures of barley were received over the course of 37 months. Signed, Kushim.”
Would you like to stand out from your competition, cut costs, improve your cash flows, or take advantage of strategic opportunities available to your business?