The two main issues which businesses are facing directly are the implementation of accounting systems and management of cash flows to sustain a business.

Filing and paying taxes is an entirely new challenge for most enterprises in the region. Compliance with a new tax authority requires painstaking attention to detail and a familiarity with all accounts and reporting. Beyond tax concerns, financial reporting is developing into the new norm for maintaining a thriving business with ever-changing market conditions. The implementation of technology as a tool for financial reporting poses an additional, but necessary, complication.

In order for any business to expand and handle operations cost-effectively, the insights gained from financial reporting become a consideration into management’s decisions. Better decision-making leads to increased profit and greater competitive advantage, an exclusive benefit to early implementation.

The issue of cash flow management is undermined by most business focused on adjusting to taxation. This process is putting pressure on every single business but particularly jeopardizes those already experiencing a cash shortage. Having enough cash reserved to be able to handle the interim period between the initial invoice and receiving payment requires an excess of funds previously unnecessary. Unless this is regularly supervised, businesses have to operate at a more profitable level to survive.

Although the VAT was designed to be paid by consumers, the exposure risk is becoming the responsibility of the business. Changing the structure of business agreements to focus on cash rather than receivables will give limited leeway, but focused cash flow management is the only way to ensure a thriving business.