At long last, the second biggest informal sector in the world is reopening!

This is good news although there is a catch….formalise your operations! Have you registered yet? Are you in compliance of local laws and regulations?

The costs of non compliance

• Running battles with the police
• Lost business when you engage on a temple run with authorities
• The opportunity cost of fines
• Little growth and being overtaken by those registered

So formal registration should be on top of your agenda and we will be promoting members involved in company registrations such as Kudzi Mafuta, Maxine and more…

Renting Premises or Online Businesses

You have to seriously consider whether to operate in the CBD or maximise on Online Businesses.

Bricks and Mortar Buildings: This is what has always worked in the past-proven business model. Most customers are used to experiences of seeing the goods they want to buy, who is selling them and the experience of seeing others buying too.

The drawback is getting into town is going to be a hustle for business owners and clients too. You should have witnessed it by now-long queues of passengers waiting for ZUPCO buses and kombis. The long winding queues of vehicles at most fuel stations should be a reminder that travelling in the current environment is a huge challenge. For big cities, transport is going to be a big headache but small cities where many can walk into town; they may not be adversely affected.

Online Businesses: Numbers do not lie, latest figures of internet activity shows an upsurge in online activity across the globe. Even on our forums, we added 10,000 members during the first 30days of the lockdown-a number we used to get in 12 months. Having no presence on online platforms is a literally a cardinal sin. The nation has moved online and being absent means a large chunk of lost business.

You will benefit from the transport inconveniences if you have an online business located in your suburb specific area. Take for example online businesses in Chitungwiza. Clients will have to calculate the transport inconveniences of travelling to the CBD versus buying local.

We compiled as easy to read book on Digital Marketing which we feel should be on the book shelf of every entrepreneur. The E-copy is available for US$1 or RTGS Equivalent of 60 Bond.

Mixture: I would not advise small businesses to totally abandon business premises and fully go online. You may still have clients who prefer buying from your premises-do not lose them!

Carry out an analysis of who they are, capture them and encourage them to join your online business platforms such as Facebook, Twitter, Instagram, Whatsapp and Telegram. If you do not have a website, the time to invest in one is now!

In your financial statements, record brick and mortar revenues versus online revenues. Calculate profits too for each funnel. Use this evidence for decision making on whether to maintain business premises or close.

If online business is more profitable, then consider downscaling physical premises but you may still need small space for goods collection by clients.

We wish you all the best and do not forget to join our Social Media platforms especially Suburb Specific Whatsapp groups.

Tutors will have to play catch up with a number of subjects due to the disturbances from the Covid-19 pandemic. We look at one subject which can assist tutors to help students catch up quickly and the subject is accounting. For beginners, the subject is introduced the same way be it at form 1, form 3, A level, undergraduate or post graduate level.

Traditional Approach

The most common way to teach accounting is to start from the bottom and build upwards. Debit/Credits, T Accounts, Journals and ledgers, Trial balances, Profit and Loss then Balance sheet and cashflows. Key accounting concepts are also introduced during the course including accounting standards.

For starters, the bottom up approach can be confusing and may take ages for students  to appreciate what exactly they are doing and why.

Disruptive Approach

You start with the end product (financial reports)

Showcase the set of final financial statements. The Profit and Loss, Cashflow, Balancesheet and accompanying notes used for external reporting .

Showcase the set of management accounts used for decision making and the various components.

Print hard copies and bound them in book formats. Students will constantly refer to the books throughout their studies.

Computerised Final Accounts

Students should appreciate how the accounts are prepared and tutors can utilise simple accounting softwares such as Pastel and demonstrate source document inputs and running reports.

Accounting visualised

A visit to the stock exchange will help students to appreciate how companies raise funds. How the stock exchange  works, getting a feel of stock share certificates and interviewing investors and stock brokers. An important output is where do equity on balance sheet emanates from?

Balance sheet visualised

Help students appreciate components of a balance sheet such as:

Assets: Physical buildings, equipment, vehicles, inventory examination. Take photos of assets and let students create own balance sheets.

Liabilities: Take students through liabilities reviewing a sample of reports, conducting interviews and referring to published financial statements.

Profit and loss account Visualised

A visit to a local retail shop, tuckshop and others and observe operations, how they are recording transactions and creating records will help. How the Profit and Loss links up with Balance sheet etc

They should have a set of a trial balance and appreciate its importance, how it’s linked to other ledgers and accounts.

They can be asked to create own personal financial statements, or help  family members running businesses.

Linking Financial Reports with Source Documents

The last stage is an exercise of linking the final accounts with the source documents.

This is back to Debit and Credit concepts  linking it with the final accounts.

T accounts preparations and appreciating the big picture. By referring to accounting system financial reports print outs.

Journal and Ledger entries with students linking them to their copies of the big picture of final accounts.

Advantages

The accounting course can be completed in record time and this can even be slicing 70% off the traditional approach.

Students will complete the course with practical skills and for those interested in pursuing the course further, they would have got a great foundation.

The traditional approach wastes a lot of time with too much theory which may make it difficult for students to appreciate why they will be doing the course and what exactly they will be doing.

Tours can help reduce study time by a considerable amount. Images of a balance sheet likely to stay longer in the minds of students than having a tutor standing in front of a class and delivering lectures.

In future we will look at more subjects such as Mathematics, Economics, Business Management and others.

We hope you find this useful.