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You can see how we’ve benefitted other businesses by reading what our clients think!

“We approached SCG because we needed to outsource our payroll management process in order to focus on our core business of manufacturing electrical cables; and had to do so at reasonable cost. This objective has been achieved with close collaboration and continuous support from the SCG team. By way of value addition, they notify us when there is any change in relevant legislation to ensure we are up-to-date with regulatory compliance.”

About Nexans Kabelmetal Ghana Ltd.

Nexans Kabelmetal are a wholesale company specialising in manufacturing, building and construction equipment, such as electrical apparatus and metal products.

Their problem:

They came to us with the need to outsource their payroll management process in order to focus on their core business.

The SCG Solution:

This objective was achieved with close collaboration and continuous support from the SCG team, including notifications when there is any change in legislation and compliance.

Case Study: How we saved Adehyeman several thousand cedis in back tax claims.

Adehyeman Savings and Loans has been a client of SCG Payroll Solutions since 2008.

They were subjected to a payroll audit by the Ghana Revenue Authority (GRA) between November and December 2017. The audit covered the period Jan 2015 to July 2017.

SCG's specialized payroll team was able to keep Adehyeman compliant and guide them through their payroll audit.

About Adehyeman Savings and Loans Company Ltd

Adehyeman Savings and Loans Company Ltd. is licensed by the Bank of Ghana as a Non-Bank Financial Institution (NBFI). With 6 branches in Accra, Kumasi and Swedru, they maintain a focus on individuals, groups and small to medium scale enterprises.

Their problem:

Adehyeman were subjected to a payroll audit by the Ghana Revenue Authority (GRA) between November and December 2017. The audit covered the period Jan 2015 to July 2017.

 

At the client's request, we provided tax reports and payroll registers for each month in the period to GRA. We were also ready to provide information and clarifications required by the GRA auditors.

 

The GRA Auditors issued a draft report which claimed that Adehyeman had underpaid taxes for the period under audit by tens of thousands of cedis. They also provided supporting calculations to back the claim. Adehyeman would be liable to pay GRA the amount underpaid.

The SCG Solution:

We represented the client at the meeting to discuss their findings. In preparation for the meeting, we carried out a detailed analysis of the differences between the taxable amount calculated by the GRA Auditors and ourselves.

At the meeting, we demonstrated with detailed workings for the period, that the GRA Auditors had consistently arrived at a higher taxable income because they did not take account of legitimate deductible reliefs. We provided detail evidence to support the reliefs. At the end of the meeting the GRA Auditors agreed to review their computation and asked for information on the reliefs which we readily provided.

Our work as outsourced payroll provider gives the Adehyeman CEO peace of mind. We've been able to save Adehyeman the back-tax claims because:

  • We understand the Ghana tax and HR laws and ensure that our clients comply fully with the tax and pension laws.
  • We carefully maintain data and documentation supporting our computation and can readily access that anytime, even years after the work was originally done.
  • We have experience of representing clients in payroll audits and can go to the heart of the matter.

Case Study - How we successfully  implemented and transferred Strat-Afrique's  financial systems to Xero

At SCG, we are committed to assisting small and medium enterprises get a hold of their accounting, and improving the basis for decision making and compliance with tax laws.

About Strat-Afrique Ghana Ltd

Strat-Afrique (SA) is a strategy consulting firm based in Accra, Ghana. The firm has been a client of SCG since 2009. Before 2016, SCG provided an after the fact bookkeeping service.

Situation before 2016

  • Strat-Afrique compiled its transaction data – invoices, Excel spreadsheets tracking bank and cash transactions, and submitted them after the month end.
  • SCG received and captured the data into a desktop software located in its office.

Their problem:

The arrangement was deficient in a few ways:

  • The client had to develop and maintain systems for tracking cash and bank transactions and generating the paper work needed for accounting purpose.
  • The transactions documents were submitted for processing some days after the month end. As a result, the financial reports were delivered between 15 and 21 days after the month end.
  • If the manager needed an underlying report to review, he had to make a request and would generate the report for him.
  • The financial reports were delivered days after the month had ended – typically between the 15th and 20th of the next month.
  • The budget was not captured in the desktop software, so the client could not readily compare budgets to actuals and act in a timely manner.
  • The client made decisions without a true understanding of its financial position and performance.

The SCG Solution:

Move to XERO, an online accounting software

In 2016 Strat-Afrique agreed to participate in a trial of XERO, an online accounting software. As part of the trial process:

  • We set up Strat-Afrique on XERO and trained the administrative person on how to use XERO.
  • We also created standard procedures that the administrative person should follow to capture daily recurring transactions such as bank, petty cash expenses and invoices into XERO as they occurred.
  • We uploaded the client's data into XERO.

SCG's role changed to:

  • Review of the data capture for accuracy – codes, descriptions and amounts. That is possible because we have access to the same database as the client, so we can see what is going on.
  • Journals and adjustments – we pass all journals and any adjustments needed.
  • Reconciliations – we prepare all reconciliations.
  • Closing of books – we perform all the activities needed to ensure that the accounts were complete and accurate before closing the books and preparing the financial statements for the month.
  • Vat and withholding tax returns – we review the returns prepared by the administrative person to ensure in compliance with the law.
  • Reports and analysis – we prepare and analyze the financial statements.
  • Discussion of business and financial matters – we meet with Strat-Afrique every month to discuss the reports, the business implications and offer recommendations to address unfavorable outcomes.

Situation after implementing XERO

  • Bookkeeping is done on a daily basis as the transactions are carried out by the administrative officer with an accuracy rate of over 80%. The accuracy rate continues to improve as he becomes familiar with codes and the transactions.
  • The manager, who works from different locations, can access real time financial data wherever he is. He is able to keep an eye on his accounts and make decisions using data that is up to date.
  • The manager and administrative officer have access to the accounts and can drill into and review the ledgers at anytime, anywhere if they have access to the internet.
  • Since the team is mobile and works offsite they now use XERO's to capture expenses they incur working out of the office. The paper work for accounting for expenses is reduced and refunds are processed much faster.
  • The SCG team spends more time on analysis and advising the client on business and financial matters.

We are a Silver Partner of XERO based in Accra, Ghana.

Case Study - How we became business partners with RINA, providing cost effective and reliable accounting services

At SCG, we work with SMEs of all sizes and can structure arrangement that give client cost effective and reliable accounting.

About RINA Energy Ghana Ltd

RINA Energy Ghana Limited, a subsidiary of RINA provides inspection and certification services to companies in the Oil and Gas sectors. RINA, the parent company has a corporate finance office in Italy.

In 2015, RINA Energy Ghana Ltd contracted SCG Chartered Accountants (SCG) to provide accounting services. Payroll and tax services were added up in 2017.

Their problem:

RINA did not want to set up a full administrative office in Ghana and so approached SCG in 2015 to provide accounting services to it.

In addition to accounting services, it had limited understanding of the Ghana tax and labour laws and needed assistance to understand and comply.

The SCG Solution:

What we have been doing: 

We run the accounting back office for RINA Energy Ghana Ltd, and as part of that, we:

  • Capture transactions in the accounts.
  • Manage payables for RINA and set up payments via the online banking platform.
  • Handle VAT and withholding tax filings for RINA.
  • Advise on tax and payroll related issues.

We set the client up on XERO, a cloud-based accounting tool that gives both the finance team in Italy, and the SCG accounting team access to the same accounting data. RINA Energy Ghana Limited gave SCG access to their online banking platform so we can view and set up payments.

We both agreed that accounting will be done in real time i.e. as transactions occur. To enable that, we agreed the following:

  • Procedures and timelines for submitting data.
  • Reporting deadlines and the reports to issue.

At present, transactions are captured daily, and the bank accounts reconciled on a regular basis. As we initiate and setup the payments on the online banking platform, we ensure that the correct taxes are withheld. The RINA Finance team review the accounts on a regular basis using their access to the software.

The results of our involvement

We act as the accounting back-office for RINA Energy Ghana Ltd. That saves RINA the cost of personnel and infrastructure that they would have had to setup. RINA has access to up to date accounting information and its tax filings are done on time.

Beyond accounting and payroll, we have been assisting RINA as follows:

  • Defining and documenting procurement, administrative and accounting policies.
  • Assisting with profit and loss estimation for tax self-assessment. The projections help Rina to avoid overpaying taxes during the year.
  • Preparing annual procurement plan and local content performance report. These reports are required by the Petroleum Commission, the regulator of the oil and gas industry in Ghana.
  • Providing general, financial, tax and business advice.

Work with us to begin growing your business

If you're ready for a new partnership that will make a real difference to you
and your business, then take the first step by talking to us.

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