There is a classic Ugandan tragedy that happens every day. A business owner drives a Harrier, wears nice suits, and buys rounds of drinks at the bar. But his shop has empty shelves, the suppliers haven't been paid, and he is dodging calls from the landlord.
He isn't a bad person. He is just suffering from "Pocket Accounting."
"Pocket Accounting" is when the money from the customer goes into your Mobile Money wallet, and then out of that same wallet to pay for your child's school fees, fuel, and lunch.
Financial mismanagement (specifically commingling funds) is the reason 60% of SMEs fail within the first 3 years. You aren't running a business; you are running a piggy bank.
In 2026, if you want to scale, you must treat your business like a separate person. Here is the 3-step cure.
1. The "Church and State" Rule (Two Accounts)
This is non-negotiable.
Account A (The Business): This is where all sales go. Every coin. Whether it is cash, MoMo, or a bank transfer.
Account B (The Personal): This is your personal account.
The Rule: You never buy personal items (groceries, beer, rent) from Account A. Never. It is illegal in the court of business growth.
2. Fire Yourself (Then Re-hire Yourself)
You need to be an employee of your own company. Determine a salary. Be realistic. If your business makes 5M profit a month, you cannot pay yourself 5M. You will starve the business.
The Formula: Pay yourself what you would pay a manager to do your job.
Maybe it's 1.5M.
Transfer that 1.5M from Account A to Account B on the 28th of every month.
The Discipline: If your personal money runs out on the 15th, you are broke. You cannot dip back into the business account. You have to wait for payday, just like everyone else.
3. The "Profit First" Tweak
What happens to the remaining money in the business account? That is for:
OpEx: Rent, salaries, utilities.
Restocking: Buying new inventory.
Tax: (Yes, remember EFRIS?).
The "War Chest": Savings for bad months.
Why this matters for Loans: When you go to the bank to ask for a loan to expand, the first thing they ask for is Bank Statements. If your statement shows Income -> Bar Bill -> Income -> School Fees, the loan officer will laugh you out of the room. If your statement shows Income -> Supplier -> Income -> Rent, they see a business.
The Challenge for January: Go to the bank (or use your MoMo menu). Open a second merchant code or sub-account. Name it "Business Revenue." Start today. Your future self (and your inventory) will thank you.
