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M-SHIRIKA COMMUNICATIONS AND EXECUTIVE SUPPORT SYSTEM

FAQ

Q1. Why M-Shirika above the competition?

Q2. How much does she charge?

Q3. Which Currency do I use for my Accounts?

Q4. What is the Legal context for use of M-Shirika?

Q5. What are the key differences between M-Shirika Wallet and M-Shirika Enterprise?

Q6. I'm not a Maths person and I get confused with Accounting jargon like Assets, Liabilities, Equity, Debit and Credit?!

Q7. What are MMFT Debit/Credit Rules and how do I use M-Shirika for Myself, Business, Chama, Small Groups, etc?

Q8. How can I make more money with M-Shirika?



Q1. Why M-Shirika above the competition?

Albert Einstein and Robin Sharma said, to paraphrase, that anyone can make things complex but simplicity is the hallmark of genius.

M-Shirika is fast, easy to use and so versatile thanks to an IP protected Utility UI/X Design, Business Logic and Data Layers which do all the heavy lifting for you and hide engine complexities under the hood so that all you need to know is when to step on the accelerator and when to hit the brakes really hard...on your finances that is. Versatility means adaptable, flexible, multipurpose ... almost everyone can use M-Shirika for almost anything.

M-Shirika helps anyone who cares about their personal money to manage it like a professional Certified Public Accountant (CPA) without worrying too much about the technical how-to. Moreover, in fact, if you use M-Shirika for your business, you will make it even easier for your CPA to do their job whether Book-Keeping, Management Accounting and Advisory, Auditing or filing Annual Tax Returns to get that Tax Compliance Certificate required in Government Tenders which, in some countries like Kenya, have affirmative action in allocations for Youth, Women and Persons With Disabilities.

By the way, the brand name M-Shirika is derived from the Swahili word "mshirika" which means "member". The dash hyphen makes them mobile empowered. The story of M-Shirika began with her big sister B2B Enterprise version for large membership-based organisations. Please don't ask why her small sister's name is M-Shirika Wallet not Purse! OK, since you asked, maybe that is her surname which are usually male right? And, come to think of it, who is usually richer, the one with the Wallet or the Purse? See, told you not to ask, now you've started a gender tussle :)

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Q2. How much does she charge?

M-Shirika Enterprise is Free for the first 30 Days of Login. If you wish to continue thereafter, a Fixed Pre-Paid Licence Fee between KES 1,000-100,000 per month is negotiated. Alternatively, a Variable Post-Paid Licence Fee of five percent (5%) of Transactions Value per Month can be agreed. For instance, the Licence Fee for Transactions valued at KES 10,000 is KES 500 only. She's pretty fair, right? A Memorandum of Understanding (MOU) is signed after the Free Trial.

Pre-Paid Licence Fees are paid in Advance after the 30-Day Free Trial i.e. by the 1st Day of the Second Month. Post-Paid Licence Fees are billed prior to subsequent Months i.e by the 1st Day of the Third Month for Transactions of the Second Month. So take advantage of the free First Month to update your huge Transactions such as Assets, Equities and Liabilities free of charge.

As with other Utility Companies like KPLC which turns its electricity meters from green to red when tokens are low, for 7 days before the next 30-Day Cycle, a Billing Due Notice will appear after Login and Notifications sent. As with electricity in a hospital's Intensive Care Unit (ICU) or an airport's Air Traffic Control Tower, M-Shirika provides a Mission-Critical Service to her Clients so she does not play around with her Service Delivery and expects her Clients to reciprocate the same.

Banner Adverts are priced on enquiry.

Modes of Payment are provided on BMA website contacts page www.bma.or.ke

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Q3. Which Currency do I use for my Accounts?

M-Shirika has done her research meticulously to provide you with 160 Currencies for 251 Countries so you can use any of your choice which you set during adding Accounts. You can have multiple Accounts in diverse Currencies however remember that the Transactions, Cash Flow and Net Worth Statements will load with your Preferred Currency Settings unless you select a different Currency Filter so as not to mess up your Totals. Alternatively, use separate Logins for different Currencies if that's a big deal to you.

For Forex Rates, Google the Currency Symbols e.g. USD to KES.

If you are philosophically inquisitive and curious about the value of Currencies and Foreign Exchange, read this article titled "In reality, a US Dollar is equal to eight Kenyan Shillings" - Mungai Kihanya, Sunday Nation, April 22, 2007 [click/tap here]

To compare Developing and Developed Countries and identify where your country is categorised, read the following lists: List of Countries by GDP (PPP) per Capita [click/tap here] and List of Countries by Human Development Index [click/tap here]

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Q4. What is the Legal context for use of M-Shirika?

Your BMA PIN is provided under the Terms of Use and Legal Framework provided on the following links: www.bma.or.ke/terms and www.bma.or.ke/legal [click/tap here]

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Q5. What are the key differences between M-Shirika Wallet and M-Shirika Enterprise?

M-Shirika Wallet provides only a few of the 6 Benefits and 14 Features available with M-Shirika Enterprise as listed on the DPP download www.bma.or.ke/mshirika [click/tap here] such as Multi-User Access to Statements, Access via Dial Code, Sending SMS Acknowledgments, M-Pesa Integration and a Registry Database.

Both M-Shirika Wallet and M-Shirika Enterprise Setup are instant however, for large or complex organisations, BMA offers Customisation and Data Migration which takes 5-15 days with the latter.

M-Shirika Wallet Licence Fee is 1% of Transactions Value whereas M-Shirika Enterprise Licence Fee is negotiated as either Fixed Pre-Paid at KES 1K-100K or U$D 1 per Account or as Variable Post-Paid around 5% of Transactions Value per Month inclusive of SMS Short Code and USSD Dial Code.

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Q6. I'm not a Maths person and I get confused with Accounting jargon like Assets, Liabilities, Equity, Debit and Credit?!

According to CPAs, Assets = Equity + Liabilities (The Accounting Equation). That is, Assets are things you have, Equity is what you invested or own and Liabilities is what you borrowed or owe for those things. However, according to Robert and Kim Kiyosaki, Assets are things that bring money to you whereas Liabilities take money away from you. Google the Kiyosaki's then decide for yourself whether your personal Car or House is an Asset!

Again, according to CPAs, if you give money to someone, then you have Credited yourself and Debited them which means every transaction must be entered twice (Double Entry Method). But Bankers behave otherwise. Maybe that's why they have the exact opposite experience everyone else usually has with their big bonuses during economic recessions!

Yeah, pretty confusing right? That's why you need M-Shirika to take care of all that :)

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Q7. What are MMFT Debit/Credit Rules and how do I use M-Shirika for Myself, Business, Chama, Small Groups, etc?

In school, your teachers measured your success using your Academic Report Card but in life, or a significant part of it, your success is measured by your Cash Flow and Net Worth Statements. You may have a CPA for your business Income Statement and Balance Sheet but what about your personal finances? Even relationships are built up or broken down to a large extent by monetary issues. "No romance without finance" the late Lucky Dube sang.

M-Shirika defines Account Categories as the follows - 5 Left Hand Types: Employers, Customers/Members, Directors/Staff, Suppliers/Providers and Financiers/Investors/Partners; and 5 Right Hand Types: Income, Expenses, Assets, Equities and Liabilities. She keeps it simple like the ten fingers of your hands. Feel free to sketch your hands down on paper and label each finger. Her Hypothesis and Logic is thus: Money must flow from the Left Hand to the Right Hand or in reverse before it moves from one Finger to another (The M-Shirika Money Flow Theory - MMFT).


MMFT Illustration. Click/Tap to enlarge.

Here are the 10 MMFT Debit/Credit Rules of how the M-Shirika Business Logic Engine works:

MMFT Rule #1: You cannot subtract/credit and add/debit the same Account in one Transaction and both Accounts must be of the same Currency.

MMFT Rule #2: You can only subtract/credit from Employers or Customers/Members to add/debit to Income Accounts.

MMFT Rule #3: You can only subtract/credit from Directors/Staff to add/debit to Expenses Accounts.

MMFT Rule #4: You can only subtract/credit from Suppliers/Providers to add/debit to Expenses (Postpaid Services), Assets (Invoiced Stock) or Liabilities (Invoices B/D) Accounts.

MMFT Rule #5: You can only subtract/credit from Financiers/Investors/Partners to add/debit to Liabilities (Loans) or Equities (Shares) Accounts.

MMFT Rule #6: You can only subtract/credit from Income to add/debit to Expenses, Assets, Liabilities (Repayments) or Equities (Retained Earnings) Accounts. Income balance must exceed or equal amount to be credited.

MMFT Rule #7: You can only subtract/credit from Expenses to add/debit to Directors/Staff, Suppliers/Providers or Assets (Depreciation) Accounts. Expenses balance must exceed or equal amount to be credited.

MMFT Rule #8: You can only subtract/credit from Assets to add/debit to other Assets, Liabilities, Suppliers/Providers (Returnables), Income (Disposals) or Expenses (Depreciation) Accounts. Assets balance must exceed or equal amount to be credited.

MMFT Rule #9: You can only subtract/credit from Liabilities to add/debit to Suppliers/Providers (Invoices), Financiers (Loans), Income and Expense Accounts. Liabilities balance must exceed or equal amount to be credited.

MMFT Rule #10: You can only subtract/credit from Equities to add/debit to Financiers/Investors/Partners (Liquidation) and Income Accounts. Equities balance must exceed or equal amount to be credited.

Here are some example Use Cases:

If you are an Employee of ABC, add an Employer Account called ABC then add an Income Account called ABC Salary and Benefits.

If you serve Customers who you do not track like in a shop, add a Customer Account called Shop Customers then add an Income Account called Sales.

If you serve Customers/Members who you do track regularly for recurrent or repeat income, add Customer/Member Accounts for each of them then add Income Accounts called Sales/Deposits/Contributions or whatever name you call those funds.

Suppliers/Providers include KPLC, Safaricom, Landlord, etc.

Expense Accounts include Airtime/Data, Electricty, Fare, Food, Fun, Gym, Salon, Clothes, Phone, Payroll, Rent, Depreciation, CSR, Tithe, Offerings, Unaccounted, Suspense, Loan Repayment, etc. from your own perspective.

Asset Accounts include Cash, Bank, M-Pesa, Property, Stock, etc. You can choose to be specific by adding each Bank A/C and M-Pesa Line if multiple. You can also add an Asset Account for each Stock item. Treat Asset Disposals as Income.

For first-time Cash, Bank and other Asset Balances, create an Account called Opening Balances B/F as Income Account Type to Credit/Subtract from.

Liability Accounts include Debts and Loans.

Equity Accounts include invested Share Capital and Retained Earnings.

For Bank and Mobile Savings and Loans such as M-Shwari, create separate accounts called M-Shwari Savings as Asset and M-Shwari Loans as Liability Account Types.

If a Customer paid you with Cash or Cheque, you have to enter it as Income first then re-enter the respective Cash or Bank Account. This updates your Cash Flow Statement as well as help you deal with Credit Sales and Post-Dated Cheques.

M-Shirika has preloaded these Account Types so you can add an unlimited number of Accounts with names specific to Yourself or your Business, Small Group, etc. After adding your Accounts, you then Enter Transactions and M-Shirika will automatically update your Cash Flow and Net Worth Statements.

If your Net Worth Statement does not balance then check whether you have entered your Accounts or Transactions in the proper way money should flow as elaborated by MMFT in the second paragraph of this question.

For instance, if you are buying a Director/Staff lunch, you cannot move money directly from Cash Asset Account to a Director/Staff Account, you need to pass it through an Expenses Account first so that M-Shirika can help you track all your Expenses. That's why you don't know where your money goes which is what she wants to help you with, remember? You can top-up your Expenses Account with a lumpsum amount which, in other words, gets you into the good habit called Budgeting.

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Q8. How can I make more money with M-Shirika?

Well, in addition to helping you stop the hemorrhaging of your pocket, you can earn a perpetual 5% Referral Commission of the Monthly Licence Fees for every Client you introduce and retain on the System, rounded down to the nearest whole number for privacy and non-disclosure reasons of course for Variable Post-Paid M-Shirika Licence Fees. This is on an early-bird-catches-the-worm basis so if someone else introduces M-Shirika to your close circles ... Family, Friends, Classmates, Workmates, Customers, Members, Suppliers, etc ... before you do, then you lose an opportunity of an additional lifetime passive income stream. The gold rush is on. Ready...Set...Go!

For Investors, whether Individual, Institutional or Groups, BMA offers you a Private Placement opportunity to inject a Venture Debt between U$D 100K to 1 Million for a return of 25% per annum upto 300% ceiling with the option of Preferential Consideration in future rounds. By the 4th year, you will have 100% of your money back and BMA will certainly seek to pay the additional 200% within the shortest time possible to provide room for additional rounds as catalysts for exponential growth required for their Mission. Public offerings via the Capital Markets are in the pipeline.

BMA is also in talks with Banks, Insurance Companies, Pension Funds, SACCOs and Government Youth/Women/Enterprise Funds for extension of Credit Facilities towards M-Shirika Clients.

To get started, visit www.bma.or.ke/deals

BMA Chairman Bro McKnight with Jamii Bora Bank at Pride Inn Westlands, Nairobi BMA Chairman Bro McKnight with Jamii Bora Bank at Pride Inn Westlands, Nairobi
BMA Chairman Bro McKnight with Jamii Bora Bank at Pride Inn Westlands, Nairobi. (Sep 2014)

BMA Chairman Bro McKnight with Government Woment Enterprise Fund, Embu BMA Chairman Bro McKnight with Government Woment Enterprise Fund, Embu
BMA Chairman Bro McKnight with GOK Women Enterprise Fund, Embu. (May 2010)

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