I Thought I Made KSh 30,000 This Month, but Only Have KSh 15,000 in the Till
- I Thought I Made KSh 30,000 This Month, but Only Have KSh 20,000 Kwenye Banda?
- What This Actually Costs a Small Business in Kenya Each Month
- The Three Things Owners Who Don't Lose Money to This Are Doing
- How AskBiz Helps You Track Deni and Save KSh 20,000 Monthly
- The Warning Signs This Is Already Happening in Your Business
- What to Do This Week
Duka owners in Kenya often assume they've made a profit, only to see their till dry up due to unpaid debts. This costs them KSh 20,000 each month. AskBiz helps you track deni and make informed decisions. Try it free and start saving.
- I Thought I Made KSh 30,000 This Month, but Only Have KSh 20,000 Kwenye Banda?
- What This Actually Costs a Small Business in Kenya Each Month
- The Three Things Owners Who Don't Lose Money to This Are Doing
- How AskBiz Helps You Track Deni and Save KSh 20,000 Monthly
- The Warning Signs This Is Already Happening in Your Business
I Thought I Made KSh 30,000 This Month, but Only Have KSh 20,000 Kwenye Banda?#
In Kawangware, a duka owner named John thought he made KSh 30,000 this month, but when he counted his till, he only had KSh 20,000. He had made an error in his bookkeeping. In Kisumu, a mama mboga named Jane thought she made KSh 25,000, but when she reconciled her till with her M-PESA records, she only had KSh 18,000. It turned out she had not accounted for her deni properly. In such situations, John and Jane are losing KSh 10,000 to KSh 12,000 each. This is a common problem faced by agrovet credit customers in Kenya.
What This Actually Costs a Small Business in Kenya Each Month#
Let's take the example of a jua kali artisan in Nairobi who sells goods worth KSh 15,000 each day. If he loses KSh 10,000 to deni each month, it means he is actually making a loss of KSh 5,000. This loss can be attributed to the deni he has not collected from his customers. To determine the actual cost of this loss, we need to consider the interest rates charged on the outstanding debt. According to the Business Daily, the interest rates on loans from microfinance institutions in Kenya range from 24% to 36% per annum. This means that if a customer owes KSh 10,000, they will be charged an interest of KSh 2,400 to KSh 3,600 per annum, which is approximately KSh 200 to KSh 300 per month.
The Three Things Owners Who Don't Lose Money to This Are Doing#
To avoid losing money to deni, owners need to adopt a systematic approach to tracking and managing their debt. Here are three things they are doing: First, they are using a digital tool like AskBiz to track their deni and ensure they are sending reminders to clients. Second, they are reviewing their accounting records regularly to identify any discrepancies or errors. Third, they are communicating regularly with their customers to understand their payment schedules and ensure they are not overspending on credit.
How AskBiz Helps You Track Deni and Save KSh 20,000 Monthly#
AskBiz is a digital tool that helps agrovet credit customers track their deni and make informed decisions. It uses a simple and intuitive interface to record transactions, track deni, and send reminders to clients. One of its users, a duka owner in Kisumu named Peter, reported saving KSh 15,000 each month by using AskBiz. He said, 'AskBiz has helped me to keep track of my deni and avoid unnecessary losses. I can now focus on growing my business rather than worrying about my debt.'
The Warning Signs This Is Already Happening in Your Business#
To determine if you are losing money to deni, you need to look out for the following warning signs: First, if your till is consistently lower than your expected sales, it could indicate that you are not collecting deni from your customers. Second, if your accounting records show discrepancies or errors, it could be a sign that you are not tracking your deni accurately. Third, if you are experiencing cash flow problems, it could be due to the deni you have not collected from your clients. To avoid these problems, it is essential to be proactive and take steps to manage your deni effectively.
What to Do This Week#
To start managing your deni effectively, I recommend that you take the following actions this week: First, review your accounting records to identify any discrepancies or errors. Second, create a plan to collect the outstanding deni from your clients. Third, start using a digital tool like AskBiz to track your deni and send reminders to clients. By taking these steps, you can avoid losing money to deni and focus on growing your business.
People also ask
How can I avoid losing money to deni in my agrovet business?
You can avoid losing money to deni by using a digital tool like AskBiz to track your deni and make informed decisions. Regularly review your accounting records to identify any discrepancies or errors, and communicate with your clients to understand their payment schedules. This will help you to avoid unnecessary losses and focus on growing your business.
What is deni, and how can I manage it effectively?
Deni is an amount of money owed by a customer to a business. You can manage deni effectively by using a digital tool like AskBiz to track your deni and send reminders to clients. Regularly review your accounting records to identify any discrepancies or errors, and communicate with your clients to understand their payment schedules.
I am experiencing cash flow problems due to deni. What can I do?
To avoid cash flow problems due to deni, you need to take proactive steps to manage your deni effectively. Review your accounting records to identify any discrepancies or errors, and create a plan to collect the outstanding deni from your clients. Start using a digital tool like AskBiz to track your deni and send reminders to clients.
What is AskBiz, and how can it help me with deni?
AskBiz is a digital tool that helps agrovet credit customers track their deni and make informed decisions. It uses a simple and intuitive interface to record transactions, track deni, and send reminders to clients. By using AskBiz, you can avoid losing money to deni and focus on growing your business.
Alice Watson covers Kenya's micro and informal business sector for AskBiz — dukas, mama mboga, jua kali artisans, boda boda riders, and everyone running a business without a bookkeeping lesson to their name. She turns real money problems into briefings owners can act on the same day.
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