Our Blog – Business Consultants Kenya

9
May

Professional Accountant Vs Accounting Software in Kenya

Accounting Software Vs Hiring A Professional Accountant In KenyaTechnological advancements have given us tools to make our lives more convenient; even in business. We have witnessed emergence of business software that automate business operations such as marketing and recently, accounting. Many upcoming entrepreneurs’ question is whether they should manage their own taxes using a software tool or hire a professional accountant. Majority choose to do it all; manage their business, including the finance sector. While some business owners swear by accounting software, others would rather stick to the conventional way of hiring a professional accountant. The debate is ongoing, and we will give some insight as to what people prefer in accounting software as opposed to hired professional Accountant and vice versa.   

Benefits Of Accounting Software 

1. Cheap 

It is no secret that accounting software are cheaper compared to hiring a professional. accountant Depending on the software you decide to use, some services will be free, while some premium services will be charged. Nevertheless, the total cost will still be lower than that spent on an hourly or monthly paid professional accountant. Accounting software tax filing packages range between Ksh. 1000 to Ksh. 12,000 a year, depending on the services you require. A professional accountant charges a minimum of Ksh. 10,000 for accounting services depending on the scope of work. Given this difference, most business owners prefer to file their own taxes using accounting software applications.  

2. Speed

There is no lie here; computers are faster than humans. While accounting software can file your taxes in less than an hour, seasoned professional accountant might probably take days to do the same. It is also quite convenient especially if you want to conduct simple actions, such as calculating simple deductions. Accounting software also prepares automated reports and analyses such as profits and losses and forecasting that hired professional accountant may take time doing. For this reason, some entrepreneurs find it better accounting software. 

3. Error-free 

Accounting software is primarily error free; meaning you will get more accurate results; unless you as the individual keys In wrong information, or wrong numbers. They say to err is to human as to machines is accuracy.  

 Benefits of Hiring a Professional Accountant 

1. Human Touch

Like a personal doctor knows your medical history, a professional accountant will know your business’ financial history and is able to offer valuable advice that accounting software just cannot give, such as tax suggestions. A doctor cannot sit by and watch your health fail, knowing your medical history; neither would a Professional accountant let your financials wither as he/she observes your accounts history. At a point in your entrepreneurial journey, you will need tax advice, and what a double cost it will be to pay for software and still pay a tax consultant for advice that your hired professional accountant would give you for free. Furthermore, it is normal for a business owner to ask questions about his/her finances especially, to do with taxes. A hired professional accountant is available around the clock to answer your questions and advice you on best practices regarding the same. Accounting software does not provide this kind of customer service. Other than automated FAQs, the software cannot answer burning questions about your business.  

2. Deals With Complicated Issues 

Business practices and investments can go wrong at any time. professional Accountant hathe skill to sort through complex tax issues that software simply cannot do, all the while giving you guidance and follow-through on the same.  

3. Thorough 

Accounting software may be fast and error-free but a hired professional accountant is thorough as they personally go through your financial files and may point put disparities that a computer would not necessarily detect. A professional accountant can even forecast a future tax error just through going through your paperwork and warn you before-hand, giving you the best way forward.  

Our take: 

We prefer the hiring a certified accountant as opposed to accounting software for this simple reason; the human factor. Hired professionals provide personal accountability, pun intended, and add more value of professional advice and financial strategies that a software cannot provide. No machine can beat the work of an extraordinary accountant. What’s your take? 

We offer professional Accounting and Tax Services in Kenya, for your start up or fully grown business. Click here to Contact us and speak to one of our trusted accountants. 

13
Mar

How To Start A Tours And Travel Agency In Kenya

How To Start A Tours And Travel Agency In Kenya – Kenya has been ranked one of the top tourist destinations in the world. According to North American destination experts Goway Travel, Kenya has become a sought-after destination by avid globetrotters because of its favorable weather, vast wildlife scenery and warm sandy beaches. There are thousands of new and repeat tourists visiting the country, and a host of locals discovering the motherland, thanks to the #TembeaKenya movement.

Many tours and travel agencies have emerged, milking the cow, that is tourism. A lot of them have become lucrative empires, such as Bonfire Adventures and Scenery Adventures, which was started by no more than Ksh. 5,000 in initial investment by the CEO, Monica Musungu. If you have an eye for tourism and travel, then why not invest in this fast emerging cash cow?

Before you jump on to registering your tours and travel agency in Kenya, you need to take the following factors into consideration:

Know your clients

You cannot set up a tours and travel agency in Kenya without knowing the type of clientele you should attract. Whether tourists or locals, it is best to know what destinations are popular for travel enthusiasts (your clientele), and new or rather untapped destinations that your clientele might like. This will lead you to determining other factors such as costs and transportation.

Pre-visit travel destinations

You need to be well versed with your travel destinations and well connected with hotels and places of interest around it. This way, you will know exactly what you are selling to your client and what they should expect. Pre-visits help with knowing the distance from major cities to the destinations, travel costs, duration of travel, etc., to help you be well equipped when you are preparing your clients for travel. These visits also help you familiarize yourself with hotels, resorts, restaurants and other areas of interest, such as historical and archaeological sites so that you can build a rapport with the managers and build partnerships with them.

Build your connections

Have a portfolio of your connections. From hoteliers to air travel providers, you should always have your connections close to you and build a good lasting business to business relationship. Here, you can negotiate on travel and holiday packages, where you will incorporate the services you will provide, such as transport and the services they will provide, such as accommodation, tour guides, game drives, and standardize the entire cost of your travel package. Remember, when pricing, try not go too high and stick to the average market price compared to your competitors; that means try not to overprice so that you can pocket too much, especially if you are just starting out.

Know your transportation.

As a tours and travel agency you will have to have a means of transportation for your client trips. This could be with a bus, a van or a small car, depending on the size of your group. Nonetheless, it is important to take this into consideration and know whether you will hire transportation or have your own company transportation means.

Find an office location

For purposes of consultation, if you do not want a virtual office, you can consider having a physical office. It does not have to be big, just big enough to hold an administrator or consultant, and also for legitimacy purposes, to settle legal matters if need be.

International Air Transport Association (IATA) Certification.

If you plan on selling air tickets through your tours and travel agency, then you will be required to undertake an IATA diploma.  it will offer you credibility when you are dealing with travel partners and suppliers in the industry, such as airlines. It is also advisable to get membership with relevant travel and tours associations to inspire confidence and integrity in your tours and travel agency business. A relevant IATA diploma will also equip you with the skills to advise clients, make reservations and travel arrangements, calculate airfares as well as complete standard international travel documents in compliance with IATA procedures and rules. It would be advisable to work on getting the relevant qualification to operate in the tours and travel industry for credibility over competitors.

Capture all these factors ion a well written business plan to help you out with budgeting and direction. If you’re not sure on how to go about it, we will gladly do it for you through our Business Planning Service.

Once you have your business plan in check, you can proceed to register your business through the following process, which we do for you from start to end.

  • Come up with three preferred names for your company. Make sure these names are exciting to entice clients to want to take part in your expeditions.
  • We reserve and register the available name.
  • Once approved, we proceed to send you registration documents to sign.
  • Once signed, you will receive certificate of incorporation and CR12 document.
  • We then get you KRA pin, NHIF, NSSF, and open a bank account.
  • We send you all the documents.

After securing these documents, you then proceed to the Tourism Regulation Authority to be issued with a Tourism License. This process takes up to 10 days and you are good to go!

One secret to success in the tours and travel business, market, market, market! Your marketing strategy will determine whether you succeed in your business or not. Make use of social media to reach masses of travel enthusiasts. We know running the business will be hectic and to make things easy, we will be happy to increase your business awareness through our branding and marketing services.

What are you waiting for. Contact us today  for more details on How To Start A Tours And Travel Agency In Kenya and get your tourism show on the road!

5
Mar

Company Registration in Kenya

Doing BusinessCompany Registration in Kenya

Kenya at a Glance

Doing Business and Company Registration in Kenya – Did you Know that Kenya is the country with the second highest ranking in World Bank’s Ease of Doing Business index in Eastern Africa?

Kenya is the Largest Economy in the East African Community, the 65th Largest economy in the world and the Financial, technical and Communications hub in East Africa.

The Kenyan GDP has on average grown at a rate of 6% since 2004 with a Per capita GDP estimated at $1,991. After Company Registration in Kenya  you get access to the East Africa Community giving you access to a market of about 150 million people and a market size with a GDP of Billion USD 145.

Kenya has in the recent past been Attracting a lot of Foreign Direct Investment due to the following factors;

  • Macroeconomic Stability: Kenya has enjoyed relatively high GDP growth year on Year.
  • Supportive Demographic Dividend: Kenya has a young population with increasing disposable income and growing demand for goods and services,
  • Improvement in Governance: The Kenyan Government has enacted key political reforms that are strengthening governance.
  • Security: The political climate in the country has eased, with security maintained and hence business has picked up.
  • Ease of Doing Business: It is considerably easier and quicker to do business than it was 10-years ago, with business opening up further to regional trade, and supportive infrastructure.
  • Investment in Infrastructure: There is a lot of investment in infrastructure including roads, rail, education etc.

The Tax Regime in Kenya is Quite Straight forward with the Tax rate for personal Income ranging from 0 to 30 %, Corporation Tax is at 30% and Vat at 16%.

For over 1 decade now, East Africa Business Consultants Has assisted many clients with the following Key Company Set Up Services in Kenya;

  • Company Registration in Kenya
  • Government Licenses Processing
  • Business Bank Account Opening
  • HR Recruitment and Management
  • Work Permit Processing
  • Apartment/Office/Warehouse Sourcing.

Company Registration in Kenya Summary Table

EntitySubsidiary CompanyBranch Company
How Long does the Company registration process Take?10 Days10 Days
How long Does it take to Open Bank Account? 5 Days5 Days
After how Long can you Invoice and Hire 15 Days15 Days
Minimum Number of Directors and Shareholders 1 –
Foreigner Can own the Company 100%YesYes
Can the entity hire expatriate staffYesYes
Tax Identification Registration requiredYesYes
Access to Kenya’s double Tax treatiesYesYes
Can bid for Government Contracts?YesYes
Can Secure Trade Finance?YesYes
Can Secure an Import and Export Licence?YesYes
Can Easily Convert into a PLC?YesNo
Can Secure Work permits for foreign Employees and Directors?YesYes
Multi Currency Bank Accounts Available?YesYes

Kindly Click here to read more on the Requirements for Company & Branch Registration in Kenya

Click Here To Contact Us For Additional information on Company Registration in Kenya or to Request for a Quotation.

26
Feb

How To Start A Day Care Business In Kenya

How To Start A Day Care Business In Kenya – If you have a passion for children and would not mind taking care of them for a living, then the daycare business is just for you. With the rising number of working mothers, children need caregivers to take care of them while their parents are away. In addition, there have been alarming cases of nannies mistreating or kidnapping children; therefore, most parents opt for daycare centers as they are a safer option to trust children with, especially if the center is within the neighborhood.

You can choose to have your daycare center and double it up with a kindergarten. Whichever the case, it is a good venture to pursue if you have the drive for it.

You will need to follow the following steps to Successfully start a day care business in Kenya.

  • Register your business
  • Draw up your business plan
  • Find your location
  • Find your staff
  • Market your daycare business

Now Let’s take each of these in turn.

  1. Register your business

Just like any other business, the day care business requires legality. The first thing you need to do is find a suitable name for your daycare center and reserve it for later registration. Then you will need to acquire a business license to make your daycare business and operations legal. You will also need to register with Kenya Revenue Authority to get your business a KRA pin number. Other legal requirements for a daycare business in Kenya include health and safety clearance, as well as liability insurance to protect facilities, staff and the children. These are the most important legal requirements you may want to work on first.

  1. Draw up your business plan

Now that you have a unique business name and you have registered your day care business name, it is time to draw up your business plan. Why? A business plan is important for planning purposes. This is where you will devise your budget, that is, know how much you will want to spend on rent for the facility along with other utilities, how many staff members you will need, how many children you will be able to host and other factors like the provisions you will be able to provide for the children. Your budget will help you manage your finances, spend well while setting up the daycare center, allow you to save some money, and most importantly help you know or have a rough idea of how much you will charge per child for your services. Remember, having a business without a business plan is like going on a journey to an unknown destination without a map. We can help you out with your business plan here. (http://www.eastafricabusinessconsultants.com/2019/01/17/professional-business-plan-in-kenya/)

  1. Find your location

Now that you have a budget and an estimate of what you would like to pay as rent for your facility you can scout around for a suitable location for your daycare business. It can either be in high tier or lower tier estates depending on your budget. A daycare center within the city would be a bit difficult to maneuver but you can weigh your options and see what works best. While choosing your location, consider the following things:

  • Population of families with working parents and young children
  • Security of the area
  • Proximity to social amenities such as hospitals, clinics and police stations
  • Proximity to commercial centers
  • Environmental safety of the area; whether it is an area where construction is going on, near a dam, or sewerage area etc.

These factors are important because they determine whether the children will be in a potentially dangerous area, and if they are near medical and security facilities should the need be. A commercial center near the daycare center would be good should there be an emergency where daily utilities such as food or diapers run out.

  1. Find your staff

This is one of the most important aspects of a daycare business. Depending on the size of your daycare center, you will need competent, experienced and trained staff to care for the children. This is where you need to take most of your time interviewing candidates, performing background checks on them and confirming their competency when it comes to children. Most times rogue care givers are the ones who abuse children and the facility ends up closing down. For the sake of your credibility as a business and to honor your values as a caregiver and founder of the center, you need to make sure you hire professional caregivers, who fit your standards, who are able to care for, as well as educate the young children. This process should be slow but sure, rather than rushed and careless because you want your business to open up quickly.

  1. Market your daycare business

Just like any other start-up, you will need to market your daycare business. The best way to start marketing is by informing working parents that you know in close proximity about your daycare center. Friends and family are always the best first customers as they could refer your daycare business to their circle of friends. Handing out fliers around your location is also a cheap and great way of getting word out about your daycare center. You can take your marketing a notch higher by using social media to market your daycare business. Leverage on Facebook, Instagram and Twitter as a lot of parents are on these platforms. Create a page for your business and promote your first few posts to get more reach and likes on your page and then carry on from there, by engaging with parents who want to know more about your business.  Share pictures of your facility, a sample of meals you offer, the play area, educational material you have and other features that will attract parents, especially mothers, to your business. You can go a step further and a create a simple website simply showing the daycare center’s features, services offered, price lists, menu for food offered, daycare timetable and contact numbers for customer care. This is will add a touch of professionalism and credibility to your daycare business and even get a chance of appearing in daycare service Google searches in Kenya.  We can help you out with your Marketing here. (http://www.eastafricabusinessconsultants.com/branding-and-marketing-consultancy-services-in-kenya/)

Work extra hard to ensure your daycare business meets the standards of those who entrust you with their children and business will be booming in no time. Are you ready to start a daycare business in Kenya? Contact us Today and we will help you register and start a day care business in Kenya.

 

13
Feb

How to start an agribusiness in Kenya

How To Start an Agribusiness In Kenya

There is a far fetched notion in Kenya that agribusiness is a ‘rural man’s’ venture. However, this rural man’s venture is a multi-million goldmine that very few Kenyans know of. Agribusiness is considered the backbone of Kenya’s economy, contributes to 24% of Kenya’s GDP and accounts to 65% of Kenya’s exports. The agricultural sector has proven to be the saving grace for the unemployed in Kenya; especially the youth. Take for example Eric Mumo, the Jomo Kenyatta University of Agriculture and Technology First Class Graduate who started his agribusiness with Ksh. 150,000 and grew it into a Ksh. 16 Million business. Or Fabian Kibet, the Eldoret University Media graduate who earned his first million at the farm. Agriculture is a lucrative business venture for those who are willing to seek to research, save money, time and seek farming knowledge.

Are you thinking of dipping your feet in the farming industry? Here is how you can start your agribusiness in Kenya.

  1. Know Your Product

Before you think of setting up your agribusiness, you need to know what type of produce you want. There are many agribusiness ideas out there; tomato farming, poultry rearing, egg supply, potato farming, vegetable production, dairy farming, fruit farming; the list is literally endless! What can help your decision, is doing a market research of demand and supply of various products in whichever area you are in Kenya. Will the idea you choose thrive there? How is the climate in your area, will your idea be favored by your environment? A good is example are small time potato farmers who sell their potatoes in Ongata Rongai, where potato production is almost non-existent while demand is high. This is a good move as opposed to selling potatoes in Meru where production is at an all-time and the demand is low. You can also find a niche sector that few farmers have tapped in to for example earthworm rearing for the purpose of use by other farmers.

It is crucial to think about product and place in the case of agribusiness, unless you want to be your own consumer.

  1. Finances

Do you have any savings for your desired business? Many successful started their businesses from their personal savings and loans from close relatives; not necessarily banks or investors. The good thing about agribusiness is that not many ideas need a lot of money. For example, if you want to start poultry farming you will need good fencing, chicks, chicken feed, chicken shelter and water supply which may cost a minimum of Ksh. 30,000 for decent quality material. Mushroom farming on the other hand can be started with as low as Ksh. 10,000. Businesses like Dairy Farming need an upward of Ksh. 100,000. Depending on your idea, do thorough market research, talk to business owners already in that niche and find out the minimum amount you need, save or raise more than that.

  1. Draw Up Your Business Plan

You don’t need to have a very complicated business plan for your agribusiness in Kenya; you only need a blueprint to help you plan things such as funds allocation, farm location, possible bills, etc. If you find trouble writing your business, contact us and we will walk you through this process.

  1. Register Your Business

A lot of farmers skip this step because they take agribusiness as a ‘less formal’ type of business venture. However, your agribusiness will still need to be registered and set up as a company, a sole proprietorship or a Partnership, for the purposes of formalizing your business and making it easy to do business with corporate clients like supermarkets or even financiers like Banks and Saccos.  We are happy to help you set up your business within ten working days.

  1. Set Up Your Business

Once you have all the necessary documentation, you can go ahead and set up your business; whether it’s selling milk, eggs; poultry, you are good to go. Make sure you market your business strategically reaching as many people as you can. Your friends and family should always be your first customers. Make use of social for online marketing and depending on the range of products, you can open have a website and online store for more professionalism.

All in all, like any other business, agribusiness is not easy, just like any other business out there, farmers face challenges. They range from pests and disease, irregular and harsh weather conditions, to financial difficulties. However, they are hardships that can be overcome with, again, thorough research on your niche and financial discipline. Contact us today for a Free Business Consultation on how to start an agribusiness in Kenya and enjoy the fruits of agribusiness!