By Sheminah Nkhoma

Lilongwe, May 16, Mana: Director of Accounting Services in the Ministry of Finance and Economic Affairs which is under the accountant general, Chifundo Kapulula has challenged accountants in the country adopt the new finance system  for financial performance.

Speaking on Friday during a training session for accountants from Ministries, Departments, and Agencies (MDAs) in Lilongwe, Kapulula emphasized the importance of transitioning from a cash-based system to the accrual concept to ensure greater transparency and accountability in financial statements.

He said,  with the new system they will be able to track on the expenses which government agencies are paying for.

“Government has been using cash accounting where recording of transactions was done only on things that they have purchased not against the amount to be paid, so the coming in of this system will help to know the amount to be paid with the assets,” he  said.

Kapulula highlighted that, with the accrual concept a list  of assets and values will be recorded for public consumption .

In her remarks one of the participants, Fatima Dossi who works for Malawi Revenue Authority (MRA) stated that as finance managers they will be able to know how they can prepare financial statements using the accrual concept .

She said that with the accrual concept, all revenues they have incurred to process the records will be easier for them to manage.

The accrual concept will allow financial statements to reflect transactions that impact MDAs net income.