As someone working closely with an investment firm focused on supporting startups, SMEs, and home-grown businesses in Pakistan, I’ve met countless entrepreneurs with incredible drive, creativity, and business acumen. Many of these businesses are thriving on the surface, with solid sales, loyal customers, and strong word of mouth. But when it comes to growth through external funding, whether it’s grants, loans, or private investment, they hit a wall.
The reason? Poor or non-existent financial record-keeping.
Most of these businesses don’t maintain even the most basic financial documentation: no receipts, no transaction history, no expense tracking. As a result, despite their success, they fail to meet the minimum requirements of investors, banks, or grant programs. It’s not that they aren’t good businesses; they simply can’t prove they are.
Banks have SME loan programs. But most businesses miss out, not because they’re not deserving, but because they can’t show they’re ready.
This is fixable, and it doesn’t require hiring a CFO or buying expensive software. A few small steps can completely change the game:
Simple Steps to Improve Financial Credibility
1. Start Issuing and Keeping Receipts
Whether you’re selling products or services, issue receipts even if handwritten or digital via a basic app. Keep copies of your own purchases and vendor payments, too.
2. Use Digital Payment Solutions
Platforms like Easypaisa Business (Merchant) Accounts or JazzCash Business make it easy to track transactions. Every payment received or made is documented, creating a digital footprint you can show to potential investors or banks.
3. Maintain a Monthly Record (Even in Excel)
Track your income, expenses, and profit at the end of each month. Even a simple Excel sheet or Google Sheet can make a difference.
4. Open a Separate Business Bank Account
Avoid mixing personal and business expenses. A dedicated bank account adds credibility and helps you track your finances cleanly.
5. Use Free or Low-Cost Accounting Tools
Tools like Aadi, DigiKhata, or even Google Forms can help with inventory, invoicing, and bookkeeping.
6. Consult a Freelance Accountant (Once in a While)
Hiring a part-time accountant for even a few hours a month can help you prepare basic documents like cash flow statements and profit/loss summaries, which are exactly what investors look for.
The reality is: capital is available. Investors like us are actively looking for businesses to back. Government and development agencies are offering grants. Banks have SME loan programs. But most businesses miss out, not because they’re not deserving, but because they can’t show they’re ready.
If our local businesses can take just a little initiative to organise their financial records, they will unlock new opportunities not just for themselves, but for their communities and the economy as a whole.
The writer is a freelance columnist and can be reached at pirzadafawad @hotmail.com