Lagos - Bayo Rotimi, the Chief Executive Officer of Quest Advisory Services Ltd., on Tuesday advised operators of Small and Medium Enterprises (SMEs) to keep proper records of their business transactions.
Rotimi told the News Agency of Nigeria (NAN) in Lagos that accurate record-keeping was the basis on which investors could ascertain the viability of any business before investing funds.
He said that SME operators in the country did not keep detailed records of their business transactions, stressing that the development was hindering in-flow of investments into the sub-sector.
Rotimi also advised entrepreneurs to engage the services of professionals to guide them on proper ways of keeping financial records.
“Most of the SMEs are not properly organised in the sense that they do not keep proper financial records.
“And if they don’t have proper financial records, it is difficult for somebody to test the viability of their businesses.
“The average Nigerian small owner of a business cannot separate the company’s money from his own personal money. He dips his hands into it at will.
“And if you don’t keep records, anybody that is looking to lend you money or to invest in your business does not have a basis on which they can make that decision.
“So the first thing we must do is that the SMEs must help themselves by starting to keep proper records.
“They can’t do it by themselves, they need different people to guide them in terms of financial record-keeping, guide them in terms of the best possible operations.
“The most efficient ways through which they can run their businesses are about managing resources and factors of production and these are the ways I think we must address it.”
Rotimi said the SMEs were the major catalysts that grew the economies of the western world, noting that with adequate funding, SMEs could address the nation’s unemployment challenges.