African companies face a complicated business landscape. Corruption is a daily hurdle, from both the public and private sectors. Capital can be hard to come by, with loans available to only the most solvent companies.

This environment can make it difficult for entrepreneurs to play by the rules. There is often strong motivation to “cook the books” or misrepresent a company’s financials in order to present a stronger-looking position to investors, regulators, and other government entities. But this is a temptation we should avoid at all costs.

Not only does it perpetuate the system of graft and inequity that has been a hallmark of the economy. It also creates a drag on future growth, because once you begin fudging your numbers, it becomes difficult to stop. This article will shed some light on the reasons why ethics in accounting are so important.