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Accounting Hand Book for Small & Medium Businesses

Small and Medium Enterprises are the stepping-stone for sustainable development of the economies towards industrialization. In Pakistan, the SME sector has a share of over 30% in GDP and employs approximately 78% of non-agricultural labour force thus making this sector a major driver of the country’s economy. Best business practices steer businesses towards competitiveness, which is a key to survive in the seamless markets of globalization culture. Conversely, it is identified that poor business practices, particularly lack of documentation, is an obstacle in SMEs’ growth and development.

Small and Medium Enterprise sector is considered to be the backbone of a developing economy with its unique capability for employment creation, poverty alleviation, innovation and competitiveness. Owing to emphasis by the Government together with stakeholders’ awareness, adequate support efforts have been directed towards SME development through creation of a business friendly environment as well as market development for financial and non-financial services.

SMEDA’s effort in the form of a publication; “Accounting Handbook for Small and Medium Businesses” is an important step towards improving business culture and prevailing accounting and bookkeeping practices in the sector.

Accounting Hand Book for Small & Medium Businesses is a practical guide for SMEs for developing their accounting and bookkeeping capabilities. This handbook discusses a typical SME business cycle and accounting transactions related to it in a hands-on manner. The handbook is comprehensive and self-explanatory with an objective to facilitate a typical SME in recording accounting activities. Accounting processes and control bearing relevance to the operating size of an SME business are discussed in a user-friendly manner. Accounting record preparation is also elaborated in a simplified way, along with examples and templates.

Who is it for?

·      Accounting / Finance managers / Owners of SME businesses with a non – accounting background, currently managing business bookkeeping and accounting in an informal manner

·      Accounting service providers seeking to provide accounting and bookkeeping services designed exclusively for their SME business clients

Contact your nearest SMEDA office to buy this book!


1.     Use accounting to help your business grow

2.     Useful facts to improve understanding of accounting

3.     Where are accounting transactions recorded?

4.     Want to start a business? Inject capital!

5.     Purchases & payables - improve your margins!

6.     Sales & receivables - sell more and generate cash

7.     Plant & machinery - key in generating profits

8.     Leasing! An attractive option for financing capital investments

9.     Inventory valuation - know your costs to sell at a profit!

10.  Manufacturing! Do you know how much your products cost?

11.  Financing! An alternative to capital injection

12.  Salaries & expenses -controllable costs to improve profitability

13.  How should a business account for transactions in foreign currencies?

14.  Accounting is done - now we need to prepare accounts

15.  Ratio analysis is a useful tool to improve decision making

16.  Income tax - how do i know what needs to be done?

17.  Sales tax - an easy to understand reference guide


1.     Balance Sheet

2.     Profit & Loss Account

3.     Cash Flow Statement

4.     Cash Payment / Bank Payment Voucher

5.     Journal Voucher

6.     Tax Challan

7.     Quarterly Statement

8.     Salary Certificate

9.     Form IT-A

10.  Form IT-B

11.  Tax Payment Challan

12.  Application for Refund of Tax

13.  ST 1

14.  ST 2

15.  ST 3

16.  Sales Tax Return

17.  Sales Tax Return for Distributors & Wholesalers

18.  Sales Tax Return for Retailers

19.  Sales Tax Return for Commercial Importers

20.  Sales Tax Return for Jewelers

21.  Advance Payment Receipt

22.  Nil Return

23.  Documents to be attached along with Returns of Traders

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