Strengthening the accounting and financial management of Comorian enterprises

Since February 2024, UNIDO accountant Mahamoud Boina has been helping six companies to improve their accounting and financial management. Maison BEAUCOR, MASH Service, BIOZEN, BIOYLANG, SALICO and AMS benefited from an in-depth diagnosis and inventory of their accounting practices and financial management tools.

The support provided by APILE-ONUDI focused on identifying areas for improvement in management, assessing product profitability, setting prices and implementing tools to measure overall company performance.

Preliminary results showed that the majority of companies lacked balance sheets, income statements, budgets and cash flow plans, all of which are fundamental to sound financial management. In addition, the lack of inventory valuation methods such as FIFO, LIFO or CMUP was another major obstacle to effective inventory management. Without these methods, visibility into true product costs and profitability remained limited, complicating strategic decision making for these companies.

To overcome these difficulties, an intensive training course was held at the APILE project offices in Moroni from April 29 to May 2. The training program was designed to improve business skills through the use of basic general ledger and cost accounting tools and the adoption of auxiliary journals to manage purchases, sales, cash, and operations. The introduction of bank reconciliation tools was also recommended to ensure more rigorous management.

A regular follow-up plan was established to closely monitor the implementation of the new accounting practices in the companies and to adapt the actions and training to the specific needs of the business.

The support provided by the auditor, aimed at addressing structural weaknesses in accounting and management to make companies more competitive, has been warmly welcomed by the beneficiaries and will be extended to new companies from June.