Account expert Jovita Madojemu said to do business effectively, direct cost and indirect cost should be considered.
Speaking as a guest on ‘’Today On STV’’, the managing Director of ”Pundit Book Keeping” company said, she started her company in 2015 after studying accounting since 2005.
Jovita revealed that her company try to understand whether the SME people are keeping source document, and they use it to track revenue and expenses, in order to check overheads which people do not pay attention to.
Giving an example of someone who one makes N30,000 as profit from selling a phone, but does not put into consideration overhead cost; she said such person may make mistakes.
As for apps, Jovita stated that her company focus on invoicing, stressing that people should use more robust accounting software; urging people not to look at sales in isolation.
In terms of individual financing, Jovita stated that her company also advises people on whether a loan is good to be collected or not.
On budgeting, the account enthusiast revealed that it is key, stressing that the milestones, goal settings, time lines are very important.
Above all, Jovita advised business people not to eat everything they get because they cannot predict the future or don’t get trapped.