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Financial frameworks serve as anchors for businesses by providing structured guidance in financial planning, decision-making, and risk management. They help ensure financial stability, transparency, and accountability, enabling businesses to make informed choices, optimize resources, and pursue long-term sustainability and growth. Are you interested in discovering a financial framework that can enhance your business while reducing stress? The Onalaja S.T.A.R. Strategy™ offers a structured approach to managing tax exposure and foreign exchange volatility in Ghana.
The Onalaja S.T.A.R. Strategy™ was developed by Temilola Aderonke Onalaja and implemented through SMET Financials. This financial framework is being utilized across various sectors in Ghana and has produced tangible results. Temilola believes that the Onalaja S.T.A.R. Strategy™ is particularly relevant in today’s volatile economic climate due to its focus on the qualities represented by the S.T.A.R. acronym:
Synergy: This aspect emphasizes the coordination of finance, procurement, and tax functions to plan purchases with fiscal timing in mind. For example, a mid-sized firm was able to reduce tax advance overruns by 19% after integrating cross-functional tax planning.
Technology: This strategy advocates for the implementation of ERP systems to monitor real-time foreign exchange (FX) exposures and automate tax offset cycles. A regulated institution shortened its VAT refund cycle significantly by automating reconciliation, which reduced its dependence on overdrafts.
Analytical Precision: This aspect encourages the use of forecasting models that account for FX sensitivity and tax-adjusted liquidity ratios. For instance, a digital services company improved its Debt Service Coverage Ratio (DSCR) from 1.2x to 1.5x after adopting FX-adjusted planning tools.
Risk Mitigation: This component involves creating floating liquidity reserves that align with tax payments and FX cycles. An example of this is a logistics company that introduced a tax-linked reserve model, which increased the stability of its quarterly cash buffer by 14%.
The first quarter of 2025 saw the cedi lose 11% of its value against major currencies (Bank of Ghana, 2025). Alongside this, new VAT reforms and full e-levy implementation slowed tax refunds and reduced transaction fluidity, especially among mobile money users. According to the Global System for Mobile Communication Association (GSMA), mobile money volumes dropped significantly after the introduction of the e-levy, worsening cash flow access for SMEs.
According to Temilola Onalaja, traditional financial methods such as fixed budgeting, static liquidity models, and siloed reporting are becoming ineffective in the face of current macroeconomic challenges. These outdated approaches lead to issues like delayed tax offsets due to processing delays caused by reforms, as well as increased procurement costs stemming from foreign exchange mismatches. Additionally, fragmented financial data results in slower decision-making cycles. Onalaja emphasizes that CFOs need dynamic models, like her Onalaja S.T.A.R. Strategy™, that can adapt to multiple variables. This adaptability is crucial to avoid the pitfalls associated with conventional methods, which she describes as relying on "linear assumptions."
Why It Matters to Investors and Policymakers
Temilola Aderonke Onalaja has noted that investors are increasingly looking for firms that demonstrate strong governance related to foreign exchange (FX) and tax-linked liquidity. The Ghana Revenue Authority (GRA) reports that policymakers in Ghana are incentivizing compliance through automation, which results in faster tax refunds and potential rebates. She believes that the Onalaja S.T.A.R. Strategy™ is the ideal solution to meet these demands, as it directly fosters transparency, resilience, and investor-grade financial operations.
Results from Ghanaian Implementation
Firms that have implemented the S.T.A.R. Strategy™ under the guidance of SMET Financials have reported a 19% reduction in excess tax advances and a three-week faster turnaround for VAT refunds. Additionally, these firms have experienced an improvement in their Debt Service Coverage Ratio (DSCR), ranging from 1.2x to 1.5x through volatility-adjusted forecasting. Furthermore, they have seen a 14% increase in working capital stability thanks to risk-buffer modeling. These benefits are applicable across various industries, including logistics, manufacturing, digital services, and financial institutions.
Businesses need to select financial frameworks that align with their specific needs, goals, and industry standards. Poor choices in financial frameworks can result in ineffective financial planning, inaccurate forecasting, and budgeting, which may lead to financial losses or even business failure. The Onalaja S.T.A.R. Strategy™ combines strategic alignment, real-time data, intelligent forecasting, and adaptive liquidity planning, enabling firms to thrive rather than just survive.
