Businesses looking to access critical credit from lenders for expansion have been advised to undertake regular accounting and auditing of their accounts.
This, according to Baker Tilly Andah and Andah, which is the Baker Tilly International accounting and auditing firm in Ghana, could help ease the credit crunch situation facing local businesses in their quest for expansion.
“It is very important for companies to put their books right and do things right. So, any company that wants to grow and have access to capital is required to subject itself to an annual auditing exercise. By so doing, you are able to use your audited accounts to apply for loans from banks to help expand your business.
“The firm that undertakes such audit is also crucial: it must be a reputable firm, as it is a major leg in the credit application process,” K. B. Andah of Baker Tilly Andah and Andah said.
He disclosed this to the B&FT during a three-day annual Baker Tilly International Africa Conference in Accra, on the theme ‘Growth through collaboration’.
Asked whether Ghanaian businesses were taking advantage of auditing and accounting as a tool to be attractive to lenders, Mr. Andah was of the belief that as the economy expands and businesses go in search of new opportunities, it is increasingly becoming an avenue used many.
On his part, the CEO and President of Baker Tilly International, Ted Verkade, explained that accounting and auditing play a critical role in the growth process of a business by providing trust for investors who are looking for new opportunities.
“Investors need to have trust in the businesses that they invest in, and accountants can play a crucial role there by providing assurance; so a well-developed profession with high international standards and integrity, high ethical standards can help in making it easier to access capital,” he opined.
He further noted the Ghanaian economy as having one of the best business climates for investors, especially European investors looking for opportunities in Africa.
“One of the advantages of Ghana is that it is a relatively safe and stable country. Ghana has always had a different position compared to many other countries in Africa, so if you ask any company in Europe ‘if you want to go to Africa, what would be the first country to look at?’ Very often, it is Ghana because of the situation,” he stated.
Annual Baker Tilly Conference
The annual conference event is for all Baker Tilly International partners – one of the widest accounting and auditing networks in the world.
The conference, which rotates from country to country on a yearly basis, brought together representatives from over 19 countries to Accra.
“It is Ghana’s turn, so Baker Tilly Andah and Andah – which is the Baker Tilly firm in Ghana – is hosting the event. During the three days we do an assessment, take stock of what we have done over the past year, and prepare for the year ahead,” Mr. Andah stated.
Commenting on the company’s operations in the country, Mr. Andah emphasised that the firm is strategising ways of increasing its market share in Ghana and Africa as a whole through quality professional services.
“We have made tremendous progress – to such an extent that major players in the economic landscape do business with us. Entities like the World Bank, the African Development Bank and donor agencies find it convenient to do business with us.
“Our network requires very high-quality controls, and that is what sets us above the competition. All firms are subject to quality control regimes to ensure that our work complies with international accounting standards,” he said.
Among other things, Baker Tilly Andah and Andah provide a range of services including accounting and auditing, taxation advisory service, management and development consultancy, as well as business advisory services.