The government has launched a simplified E-Accounting tool aimed at helping small informal businesses improve record keeping, grow their operations and comply with tax requirements.
The digital tool was launched on Thursday by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury.
The tool was developed by United Nations Conference on Trade and Development (UNCTAD) under the Informality Management for Compliance and Revenue Mobilisation (IMCORE) Programme.
Speaking during the launch, Ggoobi said small and medium enterprises remain the backbone of Uganda’s economy because they create jobs and support household incomes.
He noted that Uganda’s informal sector has more than 1.8 million micro, small and medium enterprises, mostly operated by women, youth and refugees.
“They contribute 54.5 percent of our GDP and account for 92 percent of employment,” Ggoobi said.
He however said many businesses still struggle with weak financial management and poor record keeping, which limits their growth.
“Without proper records, businesses cannot assess performance, financial institutions cannot trust them and tax compliance remains inconsistent,” he said.
Ggoobi added that improving financial management among small businesses is important in achieving government’s Ten-Fold Growth Strategy.
He described the new E-Accounting tool as “a single window solution for both legal and fiscal formalisation.”
According to officials, the digital platform will help businesses manage cash flow, track expenses and improve revenue reporting in a simple and affordable way.
During the handover of the tool to the Ministry of Finance after the pilot testing phase, Elena Botvina, an Economic Affairs Officer in the Division on Investment and Enterprise at UNCTAD, said the system is easy to use, accessible and cost-effective for small businesses.
She said the tool will support enterprises in keeping proper financial records while improving compliance and business growth.
During the pilot phase, 30 small informal enterprises in Kampala were supported, while more than 490 SMEs tested the platform and appreciated its usefulness. Officials said 241 businesses have already registered and created accounts on the platform.
