The Power of Outsourced Financial Modelling
In today’s complex business landscape, making informed financial decisions has become more crucial than ever.
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The Central Bank of Kenya’s interest rate decisions and their impact on the economy and financial markets
The Central Bank of Kenya (CBK) plays an important role in shaping the country’s economic trajectory through its decisions on interest rates.
The Rise of Sustainable Finance
Sustainable finance is more than just a buzzword—it’s a strategic approach to investing and corporate management.
Impact of the Finance Act 2023 ruling
The recent Court of Appeal ruling declaring the Finance Act 2023 unconstitutional has significant implications for tax laws in Kenya.
Building a personalized financial plan in Kenya
Creating a tailored financial plan is essential for achieving financial stability and reaching personal financial goals.
Understanding and mitigating financial risks in Kenya
Kenya, as one of Africa’s leading economies, offers numerous opportunities for investment and economic growth. However, like any other market, it is not immune to financial risks.
Cash flow management techniques for small businesses
Every Kenyan entrepreneur knows the hustle is real.
10 reasons why your strategic business plan is failing
In business, a strategic plan serves as a compass, guiding the ship through uncharted waters toward the promised land of success.
Strategies for Start-up Financing Success
In entrepreneurship, securing adequate funding is often the key differentiator between success and failure for start-ups.
Funding options for each stage
Bootstrapping – Use personal savings, credit cards, or revenue from freelance work to fund initial concept development, market research, and prototype creation.
Start-up Funding
Start-up funding is the lifeblood of entrepreneurial ventures, fueling their growth and innovation.
Impact Investing in Kenya
In recent years, Kenya has emerged as a hotbed for impact investing, a practice that seeks to generate measurable social and environmental impact alongside financial returns.
6 Types of Business Plans
Startup business plan Purpose – For entrepreneurs starting a new venture, this plan outlines the business concept, market analysis, financial projections, and strategies for success.
Understanding the Power of a Business Plan
Every successful journey starts with a roadmap. In the world of business, that roadmap is your business plan.
Sustainable Investing
Sustainable investing is a growing field that holds immense potential in reshaping the financial landscape for the better.
The art of budgeting
Budgeting is more than just a financial plan; it’s a roadmap to financial freedom. It’s a systematic approach to managing your money, ensuring that every Shilling has a purpose and is working towards your goals.
The benefits of a Financial Health Scan
In the dynamic landscape of business, staying on top of financial matters is paramount for success.
Compliance in Kenya for Start-ups
Starting a business in Kenya, like in any other country, requires careful attention to legal and regulatory compliance. Here are five key things that startups in Kenya need to be aware of to ensure compliance
Crisis financial management (Lessons from the recent economic challenges)
In the turbulent landscape of today’s global economy, businesses are often faced with unforeseen challenges, and the ability to navigate financial crises has become a crucial aspect of resilience and sustainability.
Financial risk management for CEOs in uncertain times
In an era marked by economic volatility and unprecedented challenges, CEOs are faced with the daunting task of steering their companies through uncertain financial landscapes.
Practice of strategy: What are the activities of these strategists?
This article is a follow-up on article 1: The Practice of Strategy: Who are the Key Strategists of an Organization.
The Practice of Strategy: Who are the key strategists of an organization?
Strategy is not all about thinking and planning but about getting things moving.
Why bookkeeping and proper documentation are vital for all
In the world of personal finance, small businesses, and large corporations, one common thread binds them all together: the need for effective bookkeeping and proper documentation.
Our role as CFOD in helping business keep proper records
As CFOD, our role in helping companies with bookkeeping and proper documentation is multifaceted and indispensable.
Financial Inclusion
Financial inclusion, the access and use of affordable financial products and services, is a crucial driver of economic development and poverty reduction.
Financial Literacy
Financial literacy, a crucial life skill in today’s complex financial landscape, goes beyond basic financial concepts. It involves understanding and applying this knowledge to real-life situations, making informed decisions, and developing responsible financial behaviors.
Evolving Your Kenyan Business: Challenges and Solutions
The world is changing at breakneck speed, and Kenyan companies are not exempt from the challenges and opportunities that global developments present. At CFODHUB, we’re here to help you navigate these exciting changes and make them work for you.
Tax Amnesty Guideline
The Finance Act 2023 introduced a tax amnesty, detailed in Section 37E of the Tax Procedures Act, 2015, focused on providing relief from interest and penalties on tax debt.
How SME’s can get investor ready
Getting investor-ready for SMEs (Small and Medium-sized Enterprises) in Kenya is a crucial step to attract potential investors and secure funding for their business.
SME financing
Small and medium-sized enterprises (SMEs) serve as the lifeblood of the Kenyan economy, forming the bedrock of its business landscape.Despite their pivotal role in economic development, SMEs often encounter formidable challenges when it comes to accessing much-needed financing, hindering their growth potential.
Sources of funding for SME’s
Small and medium-sized enterprises (SMEs) in Kenya have access to various sources of funding to support their growth and operations. These funding sources cater to different financial needs and circumstances.
Adopting Transfer Pricing in Kenya
In Kenya, like in many other countries, adopting transfer pricing practices is essential for multinational corporations to navigate the complex international tax landscape effectively.
Why Transfer pricing is important
Explore the importance of transfer pricing in international business and taxation, focusing on tax optimization, legal compliance, risk mitigation, financial performance, and global strategy.
Evolving Horizons: Tracing the Transformation of the Finance and Business Advisor Role
Explore the evolution of Finance and Business Advisors from number-crunchers to strategic futurists. Witness their journey through numbers, strategy, collaboration, ethics, and technology, shaping the course of modern business.
Empowering Success: A Glimpse into Our Role as Finance and Business Advisors
In today’s dynamic business landscape, Finance and Business Advisors have evolved into strategic partners, utilizing financial insights to drive sustainable growth. This article explores our multifaceted approach, transforming financial data into strategic direction.
Unraveling the Marginal Cost Misconception: A Key to Sound Managerial Decisions
While marginal cost might seem like just another accounting jargon, it holds the key to optimizing choices that can drive profitability and success. However, lurking within the shadows of this concept lies an interesting misconception that managers sometimes fall victim to
Now Is The Time To Confirm Marginal Costs In Managerial Accounting
A survey done by Central Bank of Kenya sought to establish the drivers of firm expansion and growth, domestic and external factors that could constrain their growth and/or expansion over the next one year and their mitigating factors.
The NHIF Amendment Act
The NHIF Amendment Act, 2022, received approval from the Kenyan Parliament on December 21, 2021, and was subsequently signed into law by the former President on January 10, 2022.
Recovery of July 2023 Housing Levy & PAYE
Let’s explore the Affordable Housing Levy, a mandatory contribution that both employers and employees must make each month.
Effects of the implementation of Finance bill on Employees & Companies
The proposed Bill seeks to introduce significant changes to Personal Income Tax.
How to Secure Your Financial Future and Retire in Style (for Kenyan Millennials!)
Imagine a future where you’re lounging on a tropical beach, sipping a refreshing cocktail, and living your best life during retirement.
The Best Ways to Invest Your Money in Kenya
Investing your hard-earned money is a fantastic way to make it work for you and grow your wealth over time. Yet, with the myriad of investment options available, it’s easy to feel overwhelmed and unsure where to begin
Understanding Taxes and Levies and how they impact your finances in Kenya
Taxes and levies are fundamental elements of the financial landscape in Kenya. They play a significant role in government revenue generation, public service provision, and infrastructure development.
Case Study: How Safaricom Successfully Navigated the Complex World of Taxes and Levies
Safaricom is a leading telecommunications company in Kenya. It has been operating in Kenya for over 20 years and has grown to become one of the largest and most successful companies in the country.
The Power of Streamlined Policies, Processes, and Procedures
In the fast-paced world of finance and accounting, every decision and action matters. It’s the backbone that drives businesses forward and fuels their growth.
How to Create a Finance and Accounting Policies, Processes, and Procedure Manual
Are you looking to establish a comprehensive and effective framework for finance and accounting in your organization?
Resilience Consulting: Building Strength in a Changing World with Bellmac Consulting
In an ever-changing and unpredictable world, resilience has become a crucial quality for organizations and individuals alike.
Recognizing the Need for Transactional Advisory Services: When Expert Guidance Becomes Essential
Engaging in significant business transactions entails inherent complexities and risks.
The Role of Technology in Transforming Accounting and Finance Skills
Technology has ushered in a new era for accounting and finance teams, fundamentally transforming the skills required in these fields and revolutionizing business operations.
The Importance of Financial Due Diligence in Mergers and Acquisitions
Financial due diligence is an essential step that businesses must undertake before making any significant financial decision.
Importance of Strong Internal Controls in running a Successful Business
Internal controls are essential for any business, regardless of its size or industry. They are the checks and balances that ensure that financial transactions are accurate, reliable, and secure.
Captivating highlights to note of the finance bill 2023
Taxation of branches/permanent establishments – The proposed reduction of the non-resident corporate tax rate from 37.5% to 30% from January 2024 is a welcome move for companies operating in Kenya.
Capital Structure Implementation in Kenyan Companies: Impact on Business Success
Kenyan companies have been adopting different capital structure approaches based on their specific needs and market conditions.
The Role of Deal Structures in Joint Ventures: A Comparative Perspective
Joint ventures (JV) have become a popular way for companies to collaborate and achieve their business objectives. A successful JV requires careful planning, negotiation, and implementation of the deal structure. The deal structure determines how the JV will operate, the responsibilities of each partner, and the allocation of resources and risks.
The Importance of Valuation in Business Deals
Valuation can impact a business deal in several ways. For example, if the valuation of a company is too high, it may deter potential buyers or partners from pursuing a deal.
Asset Management
Globally, a number of high-profile companies have struggled due to poor asset management practices. For example, Sears Holdings Corporation, a major US department store chain, filed for bankruptcy in 2018 after years of declining sales and mounting debt.
Financial Management
Effective financial management is crucial for the success of any organization, be it a multinational corporation or a small and medium sized business.
What is Financial Management?
Through our financial performance management services, we help organizations manage their financial performance more effectively. It involves providing advice and guidance on various aspects of financial management, including financial analysis, budgeting and forecasting, cost management, financial modeling, performance metrics, and financial systems and processes.
How Supply Chain Efficiency and Effectiveness Improves Your Business
A supply chain is a network of interconnected entities that work together to deliver goods or services to customers. It includes all the processes involved in sourcing raw materials, manufacturing, transporting, and distributing products.
THREE MAJOR CHALLENGES FACED BY CFOS IN 2023 AND HOW TO NAVIGATE THROUGH THEM
In 2023, CFO are faced with a very complex, uncertain and a highly volatile business sphere to operate in. Currently, CFO’s are made to deal with the aftermath of the Covid-19 pandemic, the unending pressure to adopt ESG reporting, the need for digital transformation as well as post-election economic meltdown for the Kenyan based businesses.
9 Accounting Tips for Start-ups and MSME
Financial management not only involves the process but also having the right team to spearhead the functions of the department. 20% of the businesses barely survive beyond the first year and only 30% of the MSME’s will be able to celebrate their 10th birthday, this is according to Bureau of Labor statistics (https://www.bls.gov/)
DEBTOR MANAGEMENT
For most businesses, unpaid bills/ open invoices have become a normal occurrence. Sadly, debtor management has become a nuisance for most businesses to an extent, most have decided close shop.
What are the benefits of implementing an ERM in your organization?
The Journal of Risk and Insurance has revealed that businesses with established Enterprise risk management procedures have a 25% chance of increasing their business value.
ERM Standards
Enterprise Risk Management (ERM) standards are prescriptions that provide organizations a structure for controlling risks. Organizations may identify, evaluate, and manage risks that could have an impact on their operations, financial performance, and reputation.
What is installment tax?
This is a form of tax that is paid by an individual or non-individual tax payer that is not fully covered under PAYE and is remitted periodically. It is paid by a tax payer whose annual tax liability is estimated to exceed Kes. 40,000.
Statutory Deductions
A statutory deduction is a mandatory deduction that an employer takes out of an employees’ salary. This is mandatory in Kenya, and as an employer you are required to remit the calculated amount to the relevant authority.
Did you know that for every Ksh.100 staked, KRA takes away Ksh.7.5?
In an effort by the government to tame rogue entities, betting firms will now be required to make real-time remittances to KRA. This is after a pilot project to link the tax system with the betting sector was successfully implemented by KRA.
IMPACT OF THE NEW NSSF RATES 2023
The NSSF Act 2013 whose enactment was done in 2013 was to come into effect in 2014, however, its implementation faced a massive opposition from labor unions who sort the advisory of the court to bar its implementation.
Budgetary control and organizational performance
Budgetary control involves comparing actual expenses and revenues to the budgeted figures and taking the necessary action to correct any variances. This enables business owners to manage and monitor spending, making it easier to stick to the budget and correct variances in good time.
The role of finance function in an organization
The finance function is an important part of any business/organization that seeks to ensure efficient management of financial resources and maintain sustainable and viable growth in the long run.
Business growth through mergers & acquisitions
Mergers and Acquisitions (M&A) have become a popular strategy for business growth and success as they offer diversification and market positioning. Most small and medium-sized companies opt for M&A due to the stiff competition they face in the marketplace from big companies that have control in the industry.
Doing Business Internationally
“Venturing out of your comfort zone to trade internationally may make your business stronger, more successful, and more profitable”. Bruna Martinuzzi
Ethical concerns in corporate finance
In business, management and other employees need to act under the highest ethical standards i.e., act with honesty and integrity, no conflicts of interest, accuracy etc.; in all financial activities.
Filing tax returns in Kenya
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 in business
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.
Running an effective accounting and finance function
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.
The electronic tax invoice management system (TIMS)
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.
The need for accounting software
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 Management
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.
Guidelines for Managing Receivables
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 Accounts Payable
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.
Finance and Accounting Tips for Your Business
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.”
The Essence and Significance of Financial Analysis
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?
Outsourcing to Maximize Value
Outsourcing involves contracting a third party, specialized in a particular field, to take care of certain tasks in your business, so that you can focus on your core activities.
Navigating Your Business Through Uncertain Times
The coronavirus pandemic has caused much disruption in business, pushing organizations to drastic action to survive and thrive. Firms in face-to-face service industries and the transport industry have especially been affected due to stay home and social distancing measures put in place by governments around the world.
International Financial Reporting Standards (IFRS) – A General Overview
Financial reporting is a very important aspect of running your business. When done properly, the figures presented are useful in analyzing the financial performance of your business, thus becoming more successful.
Internal Controls in Accounting
Internal controls are policies are procedures put in place to ensure continued accuracy and reliability of accounting systems. They are put in place to enhance financial integrity, control errors, and prevent fraud.
Financial Inclusion in Kenya
Financial inclusion can be defined as a situation where businesses and individuals have access to financial products and services that are affordable and meet their needs.
Finance and Accounting Tips for Your Business
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.”
Benefits of Accounting & Reporting for SMEs
One major challenge that SMEs face during start up or growth is access to funding. Accounting and reporting can therefore support SMEs by providing lenders with transparent information to aid in assessing the risk of borrowing and improves chances of obtaining the funding.