By Leonard Okachie
The Abia Project Coordinating Office of Livelihood Improvement Family Enterprises, Niger Delta (LIFE-ND), has organised a working session on basic accounting and book-keeping for beneficiary farmers to ensure business sustainability.
The training which was designed to equip beneficiaries of the project, including the Commodity Apex Development Association (CADA), incubators and incubatees, held on Friday in Aba.
The initiative sought to strengthen their capacity in record-keeping, financial reporting, and tax awareness to promote the sustainability and growth of their agribusiness ventures.
A resource person, Mrs Chioma Bassey, stressed that income and expenditure accounts were essential for every business.
“It helps one to know whether the business is doing well or not.
It gives you a pictorial evidence of the operating efficiency of the business and helps you know whether in future the business will thrive,” she said.
Bassey, who is the Chief Accountant at Ogbonnaya Onu Polytechnic, Aba, also educated participants on tax incentives available to young and agribusinesses.
She noted that new businesses were exempted from tax for the first four years, while some agribusinesses enjoyed reliefs depending on their produce.
“This knowledge will help them stand their ground if anyone tries to charge them taxes at this young stage. Awareness is very, very important”, she added.
Also speaking, Mr Bonny Nkoro, 13th Chairman of the Institute of Chartered Accountant, Aba Branch, said proper bookkeeping prevents businesses from collapsing unnoticed.
Nkoro, who led the session on cash books and bank reconciliation, stressed the importance of maintaining a balanced relationship between customers and financial institutions to foster a mutually beneficial partnership.
“So, by the time they are exposed to how proper books and records are to be kept, then they can have a tool and succeed in their various endeavors,” he said.
The State Project Accountant of LIFE-ND, Mr Daniel Alozie, explained that the workshop was part of the project’s capacity-building strategy for beneficiaries under Additional Finance 1.
“These are the people that will take up the responsibility of the project when the project is exiting.
“We deemed it necessary to build their capacity in record-keeping, which is a major input in any business and sustainability,” he said.
Alozie said the trained participants are expected to cascade the knowledge to other members at their incubation centers to strengthen financial management across the project’s beneficiary base.
The State Project Rural Institution, Youth and Gender Officer, Mr Anthony Nwaobilor, highlighted the role of CADA as the umbrella body that would sustain LIFE-ND investments in communities after the project exits.
“We are emphasising their roles and responsibilities in managing and ensuring that LIFE-ND investment in the communities does not die when the project exits,” he said.
The Finance Officer for LIFE-ND, Mrs Loveth Okpata-Samuel, said the session was aimed at teaching beneficiaries the basic accounting principles needed to run their businesses effectively.
“When somebody does business without keeping accurate records, it can make you either overblow your profit or underestimate it.
“We are teaching them the right books and records to keep,” she said.
Mrs Felicia Ege, a participant from Isiala Amaelu Autonomous Community, Bende LGA, said she gained valuable knowledge on tax, record-keeping and CADA.
“A lot of us are very happy because we’ve learned new things. It will help us do better and know if we are really progressing in the business,” she said.
The News of Nigeria (NAN) reports that LIFE-ND is a Federal Government project funded by the International Fund for Agricultural Development with the support by the Niger Delta Development Commission.
It is designed to enhance income, food security, and job creation for rural youth and women in the Niger Delta region through agribusiness.
(NAN)
