Catering, Pastry and Street Food Level 3

Who it is for. People who have finished Catering, Pastry and Street Food Level 2, or who can show the same skills. Ghana's TVET framework describes National Proficiency II as work that is mostly routine, under limited supervision; National Certificate I as "complex and varied activities under minimum supervision"; and National Certificate II as complex, non-routine work with considerable responsibility and the ability to guide others. This module is written at an advanced level, comparable to National Certificate I, reaching toward National Certificate II where you supervise staff. That is the author's matching, not an official ruling.

Bridge from Level 2: what you already know

Level 2 did not cover: a written food safety system with critical control points; reporting and handling a food poisoning complaint; bakery production planning and product registration; large-event and contract catering, school feeding and tenders; supervising staff; business registration, tax, payroll, full accounts and a cash forecast. This manual does. For general bookkeeping and venture basics see the hub's Money Skills Level 2 and Entrepreneurial Thinking Level 2; this manual goes deeper for a caterer and baker only. Bottled and packaged products such as sobolo, juice and shito belong to the hub's Food Processing and Cold Vending manuals.

How the module works

Each unit has learning outcomes, performance criteria, the range and the evidence your assessor needs. You are judged Competent or Not Yet Competent. Units 1 to 4 are technical and supervisory. Units 5 to 7 are about your own business. The running example is Adwoa's Kitchen and Bakery, an invented small business in Sekondi-Takoradi that bakes bread for shops, makes cakes and small chops to order and caters events. All of Adwoa's figures are examples, except where a source is named.

Competency standard

Range. One event menu (rice, stew, chicken, salad) and one bakery line (tin bread). Evidence. Protocol file; flow diagrams; hazard and control tables; validation records; incident and complaint forms; internal audit.

What the FDA code asks you to write down

The FDA's Code of Hygienic Practice for Food Service Establishments says a food business must implement and keep a written protocol for: contamination control; selecting and auditing suppliers; receiving food; cleaning and maintenance; pest management; health review of employees; personal hygiene; and waste management. It must keep records for two operational years of cleaning and maintenance, pest control, staff medicals, temperature monitoring, waste, thermometer calibration, training, daily incidents, consumer complaints and raw material control.

The code also makes the person-in-charge responsible: someone with suitable knowledge must be present at all times; they must show inspectors they understand food-borne illness risks, keep written procedures, train every worker before they start, document job descriptions, keep unauthorised people out of food areas, exclude or restrict sick workers, and report food-borne illness to the FDA at once using the FDA's reporting form. At Level 3, that person is you.

A protocol on one page

Each protocol answers five questions (the author's format):

HACCP in plain words

HACCP means finding the steps where food can become unsafe and controlling them. Codex, the international food code, separates validation (getting evidence that your plan and its limits actually work) from verification (checks, beyond daily monitoring, that the plan is being followed). Codex also asks you to think about who eats the food: children and other vulnerable groups need extra care. Many of your customers at school events, naming ceremonies and hospitals are exactly that.

Steps: build a plan for an event menu

1. Describe the menu: jollof rice, tomato stew, fried chicken, coleslaw, for 300 guests, served hot at a venue 30 minutes away.
2. Draw the flow: receive → store → prepare → cook → (hold hot | cool → store cold → reheat) → transport → serve.
3. List hazards at each step: germs from raw chicken; germs growing in warm rice or stew; poisons from Bacillus cereus in slowly cooled rice; dirt or insects; chemical cleaners; bones.
4. Choose the critical control points (CCPs): the steps where a measurable limit stops the hazard.
5. Set a critical limit, monitoring and corrective action for each (table below).
6. Validate: test that your cooling method really gets rice cool in time; that your carriers really keep food above 60 °C for the journey.
7. Verify: each week, check the records, watch a worker probe the chicken, calibrate the thermometers.

The FDA's licensing guideline asks businesses with more than one branch to validate all time and temperature cooking procedures. Even with one kitchen, validation is good practice.

Complaints and suspected food poisoning

The FDA code defines a food-borne disease outbreak as two or more people with a similar illness after eating a common food, and requires the person-in-charge to report food-borne illness to the FDA immediately. The FDA has an online food-borne illness reporting form and a public hotline, 055 111 2224.

Steps when a customer says your food made them sick:

1. Stay calm and polite. Take their name, phone number, what they ate, when, and when the symptoms started. Do not argue and do not admit fault on the spot.
2. Advise them to see a health worker.
3. Stop selling the suspect food; set aside any left, labelled "do not use", in the fridge.
4. Check the records for that batch: temperatures, cooling, staff on duty, staff sickness.
5. If two or more people report illness, or anyone is seriously ill, report to the FDA at once.
6. Write it in the incident book and the complaint log.
7. Find the cause, fix it, and train staff. Record the corrective action.

More than one branch? The FDA's extra rules

The FDA's licensing guideline adds requirements for businesses opening more than one branch: a quality assurance manager and food safety supervisor with suitable qualifications; a written supplier quality assurance protocol; enclosed delivery vans, and at least one refrigerated van if you run a central kitchen or store; means of keeping food at the right temperature during preparation, serving, storage and transport; validated cooking times and temperatures; copies of food handler certificates and records at every branch; a working food safety management system such as HACCP; a food safety officer at each branch; training for all food handlers including contracted delivery people; and an incident record book at each branch.

The FDA's 2023 fee schedule lists training and system services: Good Hygienic Practices training at GH¢200 per person, a Food Safety Supervisors' course from GH¢500 per person, HACCP courses at GH¢600 (introductory) and GH¢800 (advanced) per person, and HACCP training, installation and certification for a small business at GH¢2,500. The table is laid out unclearly, so confirm the exact line with the FDA before you budget.

Check yourself

1. What is the difference between validation and verification?
2. Who must report food-borne illness to the FDA, and when?
3. Name three records the FDA code says you must keep for two years.

Competency standard

Range. A production run of at least 100 loaves and one pastry line. Evidence. Production plan; oven schedule; check-weigh records; quality log; label draft; equipment comparison.

The law for a bakery

Bakeries are food service establishments under the FDA's guideline. The FDA has told bakers that it licenses bakeries and registers bread, that unregistered bread cannot be sold, that bakeries must not be near public toilets, open gutters or refuse dumps, and that bread must not travel in public vehicles or be left open to flies. Potassium bromate is banned.

Facility licence and product registration. For a food manufacturer, the FDA lists an annual facility licence with documents including a business registration certificate and a medical certificate for each production worker. The 2023 fee schedule lists a local food GMP inspection at GH¢100 (micro), 200 (small), 300 (medium) and 700 (large), and registration of a locally made food product at GH¢100, 200, 300 and 500 a year by size, with a pre-registration label evaluation at GH¢200 per product. Product registration needs, among other things, a certificate of analysis, the label and samples. The FDA also runs a Progressive Licensing Scheme for businesses with one to five people directly in production, with pink, yellow and green levels. Which of these a small bakery selling wrapped bread to shops must hold, in addition to the Food Hygiene Permit, was not verified: ask the FDA.

A packaged-bread label

If you sell bread in a printed bag, FDA labels must be in English and indelible ink and show the product name, net weight, ingredients, date made, best-before date, batch number, country of origin, the maker's name and address (with GhanaPost GPS), and storage instructions. Never print an FDA number you do not hold.

Steps: plan a production run

1. Collect orders by 4 pm the day before: shop, product, number.
2. Add a margin for walk-in sales and rejects (for example 5%, an example).
3. Work out dough for each product from its formula and scaling weight (Level 2 Unit 3).
4. Plan the oven: how many tins per bake, bake time plus loading time, and the order (bread first, then buns, then cakes as the oven cools, or as your oven allows).
5. Plan people: who mixes, who divides and shapes, who bakes, who packs and delivers.
6. Write the plan on a board: times for mixing, proving, baking and dispatch.
7. After the run, record actual numbers, rejects, gas used and finishing time.

Check-weighing and quality

• Check-weigh 1 in 10 dough pieces and 1 in 20 finished loaves; record them (the author's rule).
• A finished loaf should be at least the weight you sell it as; the scaling allowance of about 10–13% covers bake loss.
• Keep a quality log: date, product, faults seen, cause, action (Level 2 fault table).
• Do a cut test on one loaf from each bake: even crumb, no raw streak, no large holes.

Shelf life: mould and staling

• Cool fully before bagging; bagged bread keeps at room temperature for a few hours or days, freezes well, and goes stale faster in the fridge.
• Keep the slicer, bags, racks and store clean and dry; mould spores spread from dirty surfaces (the author's advice).
• Set your best-before by testing: keep sample loaves from three bakes in normal shop conditions; note the day mould or staleness appears; set the date earlier than that.
• Rotate stock at shops: collect old bread, never re-bag it with a new date (Unit 4 of Level 2 and Unit 7 ethics).

Choosing equipment

Prices seen on Jiji Ghana in October 2026 (summary only; confirm with sellers):

Ask each seller: capacity per bake, gas or power use, spare parts and repairs in Takoradi, warranty, and whether they will deliver and install. Get three quotes.

Check yourself

1. Name three items that must be on an FDA label.
2. Why should bread not be stored in the fridge?
3. What fee does the FDA's 2023 schedule list for a label evaluation?

Competency standard

Range. A 300-guest event plan; one institutional supply plan; one practice tender response. Evidence. Event plan and budget; contract; institutional plan; tender checklist.

Plan a 300-guest event

Chafing dishes of about 11 litres were advertised in Ghana at about GH¢400–600 each in October 2026. Compare hire and purchase: if you cater many events a year, owning may pay.

A catering contract

Put every event in writing, even on WhatsApp. A good contract or confirmed order states (the author's checklist):

Supplying schools, offices and factories

• Contract terms first: price per plate, menu cycle, delivery time, payment days, and what happens when payment is late.
• School feeding. The Ghana School Feeding Programme paid GH¢2 per child per feeding day, with 74 cooking days in the first term of 2025/26; in September 2026 the Ministry said it had cleared 2024 arrears and paid the first two terms of 2025/26. A survey found more than 30% of caterers reporting no payment in the past year. Work out your cost per plate before you sign, and plan the cash you need to cook while you wait to be paid.
• Children are a vulnerable group: be strictest on cooking, holding and handwashing.

Public tenders

Suppliers to government must be registered with the Public Procurement Authority. Tenders are advertised on the GHANEPS e-procurement portal. One 2026 guide reports a registration fee of GH¢500 and renewal of GH¢300, while a 2018 notice said GH¢300, so confirm with the PPA. A tender usually asks for your business registration, tax clearance, SSNIT clearance, licences and a price; read every line and submit on time (the author's advice).

Licences for a caterer

• FDA Food Hygiene Permit for every food service establishment, including outdoor and event caterers and online food businesses.
• Assembly: the STMA 2025 fee schedule lists formal and informal catering services, outdoor catering establishments, chop bars, snack bars and bakeries, with Environmental Health suitability certificates and health screening. Confirm your category.
• Ghana Tourism Authority (GTA): in April 2026 the GTA began inspecting and renewing licences of food, beverage and entertainment enterprises in Greater Accra, including chop bars, food vendors, snack bars, fast-food joints and outdoor catering services. The GTA fee and whether it applies to your business in the Western Region were not verified: ask the GTA Western Regional office.

Check yourself

1. Name five things a catering contract should state.
2. What did the School Feeding Programme pay per child per day in 2025/26?
3. Where are public tenders advertised?

Competency standard

Range. A team of at least three trainees on a production or event shift. Evidence. Job descriptions; rota; training matrix; briefing notes; incident and accident records; observation of the trainee leading a shift.

The person-in-charge's duties

The FDA code makes the person-in-charge responsible for: being present at all times; written policies; training every worker before they start; documented job descriptions; keeping unauthorised people out of food areas; making sure delivery, maintenance and pest-control people follow the rules; excluding workers diagnosed with typhoid, Shigella, harmful E. coli or hepatitis A; restricting workers with diarrhoea, fever, vomiting, jaundice, sore throat with fever or dripping colds, or uncovered wounds on the hands; and reporting food-borne illness.

Steps: organise the team

1. Job descriptions: for each role (cook, baker, server, cleaner, driver), write the main tasks, the hygiene rules, who they report to, and the hours.
2. Rota: a weekly table of who works when. Plan rest days and cover for illness.
3. Training matrix: a table of names against tasks (handwashing, probe thermometer, cooling, fryer, oven, cleaning, cash). Mark each: not trained, trained, competent (signed off).
4. Daily briefing (5 minutes): today's menu and numbers, allergen notes, who does what, one safety point, one hygiene point.
5. Health check: ask each worker at the start of the shift if they have any symptoms; record it.
6. Debrief: at the end, what went well and what to fix tomorrow.

Coaching a new worker (the four-step method)

1. Tell: explain the task and why it matters.
2. Show: do it slowly while they watch.
3. Try: they do it while you watch and help.
4. Check: they do it alone; you sign the training matrix when they meet the standard.

Medical records and the food handler's test

Every food handler must be medically certified before starting and take the food handler's test at least once a year. Keep a copy of each certificate and its expiry date in the staff file, and a list on the wall of when each is due (the author's advice). STMA has refused licences to vendors found with conditions such as typhoid.

Safety leadership

Labour rules you must know as a supervisor

The Labour Act 2003 (Act 651) requires a written contract for a job of six months or more (section 12), a written statement of main terms within two months (section 13), at least 15 working days of paid annual leave (section 20), 12 weeks of maternity leave (section 57), full minimum pay for each day a casual worker works (section 74), and notice rules (section 17). The 2026 national daily minimum wage is GH¢21.77. Unit 5 covers SSNIT and PAYE.

Handling people issues fairly

Check yourself

1. Which four diagnosed illnesses mean a worker must be excluded under the FDA code?
2. Name the four steps of coaching.
3. How many days of paid annual leave does the Labour Act give?

Competency standard

Range. The trainee's own planned catering business or bakery in Sekondi-Takoradi. Evidence. Registration checklist; start-up budget; funding plan; payroll sum; one-page plan; pitch.

Choose the legal form

Late yearly returns cost GH¢1,000 (one to four years late) or GH¢2,000 (five or more). Most caterers and small bakers start as a sole proprietor and move to a company when they hire many staff, bid for big contracts or take investors (the author's advice).

Tax route

• Modified Taxation Scheme (MTS): for a resident whose only income is business income and who is not VAT-registered. Turnover up to GH¢20,000 pays fixed instalments; GH¢20,001 to 750,000 pays 3% of turnover (or the Modified Cash Basis); payment by *880# or the MTS app. Professionals, owners of several businesses or outlets, and partners are excluded. The GRA's own page still showed GH¢500,000 as the ceiling when checked; the higher ceiling comes from the Income Tax (Amendment) Act 2026 (Act 1178).
• Companies pay 25% corporate income tax, with lower rates for some manufacturers; provisional tax is quarterly and the annual return is due within four months after the year end.
• VAT from 1 January 2026: 15% + NHIL 2.5% + GETFund 2.5% = 20% in effect. Registration for goods is required at GH¢750,000 of taxable supplies a year. For taxable services there is no turnover threshold: a person supplying them registers within 30 days of starting. A VAT-registered business cannot use the MTS.

Register step by step

Premises and location

• Kitchen: not a home kitchen or a room used for living or sleeping; away from polluted areas, flood-prone ground, refuse dumps and large open drains; washable walls to 2 m; a toilet that does not open into the kitchen. Get a written lease of at least a year (the author's advice) and check with the FDA and the Assembly before you pay rent or fit out.
• Sales: shops for bread; offices and schools for lunches and snacks; the STMA weekend on-street market; events by referral and WhatsApp.

Start-up budget (Adwoa's Kitchen and Bakery, all example figures unless a source is named)

The GH¢2,400 is: ORC business name 130; FDA food service facility, small 120 and Good Hygienic Practices training for two people at 200 each, 400; fire certificate 500; STMA permit and suitability certificate, an example of 800 because the category was not confirmed; and health screening for three people, an example of 150 each, 450.

Funding options

• Savings and susu groups; government is working to link savings groups to banks.
• Loans only from licensed lenders, with the APR in writing. The Bank of Ghana's policy rate was 14.00% and inflation 5.2% when its site was checked in October 2026.
• Ghana Enterprises Agency: SME GO, Business-in-a-Box, SME High Growth and Kaizen programmes, and Business Advisory Centres in Takoradi, Shama, Effia-Kwesimintsim, Mpohor and Ahanta West.
• 2026 Budget: GH¢401 million for a Women's Development Bank, GH¢170 million for a National Apprenticeship Programme, GH¢160 million for Adwumawura and GH¢110 million for the 24-Hour Economy programme. Ask how a caterer or baker applies.
• Assemblies' disability fund: 5% from 2026, aimed at skills training, assistive devices and start-up capital.
• Customer deposits for events: they fund the food for that event, not your equipment.

Staff, SSNIT and PAYE

Contract and pay follow the Labour Act (Unit 4) and the minimum wage of GH¢21.77 a day, about GH¢587.79 for 27 days.

SSNIT. The worker pays 5.5% and the employer 13% of basic salary, 18.5% in all. The employer pays within 14 days after month end; 13.5% goes to SSNIT (Tier 1), which passes 2.5% to the health insurance authority, and 5% to a private Tier 2 trustee. Late payment costs 3% a month. Register workers when you hire them.

PAYE (monthly bands from 1 September 2026): first GH¢588 at 0%; next 80 at 5%; next 100 at 10%; next 2,900 at 17.5%; next 16,000 at 25%; next 30,332 at 30%; above 50,000 at 35%. Deduct the worker's SSNIT first. Pay by the 15th of the next month; casual workers pay 5%.

At GH¢900: PAYE = 80 × 5% = 4.00, plus 100 × 10% = 10.00, plus (850.50 − 768) × 17.5% = 14.44, total 28.44 (author's arithmetic from the bands). At GH¢1,500: 4.00 + 10.00 + (1,417.50 − 768) × 17.5% = 127.66.

Apprentices: put them on a written agreement: hours, stipend, what they will learn, who supervises (the author's advice). Every food handler, including apprentices, needs a medical certificate and the yearly food handler's test. This is not legal advice.

Insurance, marketing and safety

Ghana law is reported to require business premises to be insured against fire and other risks, but the section numbers were not verified. Use only insurers licensed by the National Insurance Commission; check at nic.gov.gh. Ask for written quotes for premises, equipment and stock, and ask about public liability cover for events (availability not verified).

Market yourself: a WhatsApp Business catalogue, a free Google Business Profile with photos and reviews, clear signage, a portfolio of events and cakes, your permit on display, and referrals. Customers choose neat vendors.

Accessibility

The Persons with Disability Act 2006 (Act 715) is reported to give employers a tax rebate for hiring disabled people. An audit found only 14% of the public places checked had been retrofitted. STMA gave deep freezers and ice chests to persons with disabilities in 2025. Workable roles for many persons with disabilities: baker's bench work (weighing, dividing, shaping), cake decorating, packing, order taking, cashier and bookkeeping, supervising quality records, and running a seated kiosk. Adjustments (the author's suggestions): a bench at 71–86 cm with knee space; talking or large-display scales and thermometers; picture recipe cards and checklists; light or vibrating alarms for deaf staff; step-free entry; and a buddy for ovens, fryers and heavy pots, because WHO notes that people with some disabilities face higher burn risk.

The one-page business plan

Check yourself

1. What does it cost to register a business name at the ORC, and to renew it?
2. Which VAT rule might affect a caterer from the first day, and why is it uncertain?
3. What does an employer pay to SSNIT on a GH¢1,500 salary, and by when?

Competency standard

Range. One month of sample records and one month of the trainee's own or practice records. Evidence. Cash book; ledger and trial balance; profit and loss; balance sheet; reconciliation; stock and debtors records; costing sheets.

See the hub's Money Skills Level 2 for the basics. This unit applies them to a caterer and baker. Every figure for Adwoa's Kitchen and Bakery is an example.

The daily set of records

An income statement (profit and loss) shows sales minus the cost of goods sold, giving gross profit, then other costs, giving net profit. A balance sheet shows what the business owns and owes: assets equal liabilities plus equity.

Double entry in ten minutes

Every transaction has two sides. Assets = liabilities + equity. A debit increases an asset or an expense; a credit increases a liability, the owner's capital or income. Debits always equal credits, so a trial balance of all account balances should have equal totals; it is only a partial check, because some errors keep the sides equal.

Adwoa's first week (example). She starts with cash GH¢3,000 and capital GH¢3,000.

The sides match.

A month for Adwoa's Kitchen and Bakery (example)

Starting position (day 1). Adwoa paid GH¢2,400 for registrations, permits and training before opening (written off). She holds cash and MoMo of GH¢7,000 (working cash plus the first month's ingredients money), equipment and fit-out costing GH¢43,500, and the microfinance loan of GH¢15,000.

The month's activity (example).

Also: Adwoa bought GH¢1,500 more of flour and sugar that is still in the store, so her purchases were 25,730 + 1,500 = 27,230, of which GH¢2,000 is still owed to the flour supplier. A client paid a GH¢3,150 deposit for next month's event: that is cash in, but not a sale yet; it is money she owes in food (a liability).

Sales are 16,000 + 18,900 + 4,200 = 39,100. Credit not yet received: 3,200 + 3,150 = 6,350.

Staff pay is above the 2026 minimum of about GH¢587.79 for 27 days. Employer's SSNIT is 13%. The 3% is the MTS rate for turnover of GH¢20,001 to 750,000; Adwoa's yearly turnover at this rate would be about 39,100 × 12 = GH¢469,200. The waste of 80 loaves (GH¢400 at cost) is inside the cost of goods sold.

The PAYE of 156.10 is 127.66 (baker) + 28.44 (helper) from the payroll table in Unit 5.

The two sides match: the month's books agree.

Profit is not cash. Profit kept was 3,690, but cash rose only 2,288.10 (from 7,000 to 9,288.10). Start with 3,690. Add back depreciation 575 (no cash left the business). Add the costs not yet paid: SSNIT 444, PAYE 156.10, permits 200, tax 1,173, flour supplier 2,000. Add the deposit received in advance, 3,150. Take away cash tied up: debtors 6,350 and stock 1,500. Take away the loan principal repaid, 1,250 (not a cost, but cash out). Result: 3,690 + 575 + 444 + 156.10 + 200 + 1,173 + 2,000 + 3,150 − 6,350 − 1,500 − 1,250 = 2,288.10: exactly the rise in cash.

How much of the 9,288.10 is free? Money already owed: 2,000 + 3,150 + 444 + 156.10 + 200 + 1,173 = 7,123.10. Free cash is GH¢2,165 (rounded). The deposit is the trap: it looks like cash, but the client's food must be bought next month.

Food-specific entries

Full cost, margin and mark-up

Overhead rate. Overheads plus the owner's wage are 6,007 + 2,500 = 8,507. Share them in proportion to direct cost: 8,507 ÷ 25,730 = 33.1% of direct cost. Full cost of a loaf = 5.00 × 1.331 = GH¢6.65 (author's method; other ways exist).

Margin or mark-up? Margin is profit as a share of the price; mark-up is profit as a share of the cost. A loaf costing GH¢5.00 direct and sold at GH¢8: margin 3 ÷ 8 = 37.5%, mark-up 3 ÷ 5 = 60%. On full cost, the margin is (8 − 6.65) ÷ 8 = 16.8%.

Break-even. Each cedi of sales leaves 39,100 − 25,730 − 1,173 = 12,197 after direct costs and tax, or 12,197 ÷ 39,100 = 31.2% of sales. Fixed costs including the owner's wage are 8,507. Break-even sales = 8,507 ÷ 0.312 = about GH¢27,271 a month. Adwoa sold 39,100, so her margin of safety is (39,100 − 27,271) ÷ 39,100 = about 30%.

Depreciation

Straight-line depreciation spreads the cost over the years of use: (cost − salvage value) ÷ years. Adwoa's GH¢575 a month is: oven (13,000 − 1,000) ÷ 8 = 1,500; mixer 2,000 ÷ 5 = 400; chafing dishes 3,000 ÷ 5 = 600; pots and tools 9,000 ÷ 5 = 1,800; fridge and freezer (8,000 − 800) ÷ 8 = 900; fit-out 7,000 ÷ 5 = 1,400; safety kit 1,500 ÷ 5 = 300. Total 6,900 a year, 575 a month (example lives and salvage values).

Stock, debtors, petty cash and MoMo

Tax, payroll and filing records

Filing calendar:

Withholding tax: the GRA lists 3% on goods, 5% on works and 7.5% on services above GH¢2,000 a year, and 8% or 15% on rent. A big client such as a company may withhold tax from your invoice: ask for the WHT certificate and keep it as a credit against your tax.

Keep records for at least 6 years from the end of the year of assessment or VAT period, longer if there is a dispute. Food records under the FDA code: two operational years. Software: a spreadsheet is enough to start; Zoho Books lists a free plan for one user and an accountant up to 1,000 invoices a year for revenue under US$50,000, and Wave lists a free starter plan. Companies may follow IFRS for SMEs; its 2025 edition applies from 1 January 2027. This is not tax advice.

Month-end routine

Check yourself

1. Why is a customer's event deposit a liability and not a sale?
2. Adwoa's profit kept was 3,690 but cash rose only 2,288.10. Name two reasons.
3. What is the difference between margin and mark-up?

Competency standard

Range. The trainee's own business plan. Evidence. Quality procedures; price sheet; contract checklist; business plan and forecast; panel score sheet.

A simple quality and customer system

Answer messages quickly, replace a faulty cake or loaf without argument, and ask regular customers what they want next. Customers choose neat, reliable vendors.

Pricing strategy and discounts

Use tiers: retail, shop wholesale, institution and event menus. Write a discount rule (for example: 5% off for orders above 200 loaves a week paid weekly; no discount on credit beyond 7 days; examples).

Grow step by step

• One new product or one new customer at a time; check oven capacity, staff, cash and your food safety plan at each step (Unit 1).
• Second oven or a bigger mixer only when the cash forecast shows you can pay (exercise below).
• A second sales point (kiosk or stand) means a second permit and more records; a second branch brings the FDA's extra branch rules (Unit 1).
• Partnerships: a flour supplier on credit with written terms; shops on weekly delivery; an events centre that recommends you; a farmers' group for vegetables and plantain.
• Institutional contracts and tenders only after honest costing (Unit 3).

Records for loans, succession and ethics

A lender wants: registration papers and permits; 12 months of cash book; profit and loss; balance sheet; bank and MoMo statements; a cash forecast; and a clear use for the money (see Money Skills Level 2). Name a successor who knows the recipes, suppliers, customers and passwords; keep master recipes and records in a safe place with a copy elsewhere.

Ethics: never sell food from a batch that failed a critical limit; never re-bag old bread with a new date; never use banned improvers such as potassium bromate or dyed palm oil; the FDA code bans adding anything to food to increase its bulk or weight, reduce its quality or make it look better or worth more than it is; pay staff on time and obey the Labour Act; never print a registration number you do not hold.

Your 12-month cash-flow forecast (example)

A cash forecast has opening cash, money in, money out and closing cash for each month. Adwoa starts from her actual closing cash of GH¢9,288.10 (Unit 6) and in October pays last month's bills of 2,000 (flour supplier) + 444 (SSNIT) + 156.10 (PAYE) + 1,173 (tax) = GH¢3,773.10. Her assumptions (examples):

(Figures rounded to the nearest cedi.) Check each row: opening + cash in − cash out = closing. October is the tightest month (4,781), because last month's bills fall due. Total sales for the year are GH¢426,400 (example), under the MTS ceiling of GH¢750,000, but see the VAT flag in Unit 5.

Sales needed to stand still in cash. Each cedi of sales leaves 1 − 0.66 − 0.03 = 0.31 after direct costs and tax. Fixed cash costs plus the loan and owner's wage are 5,132 + 1,550 + 2,500 = 9,182. Cash break-even sales = 9,182 ÷ 0.31 = about GH¢29,619 a month while the loan runs, and (5,132 + 2,500) ÷ 0.31 = about GH¢24,619 after it ends. January and June sales (26,500) are just above the loan-period level, which is why they are thin months.

Capstone: present to a panel

You present a one-page business plan (Unit 5) with your 12-month cash forecast, price list, registration checklist, food safety summary (protocols, CCPs, complaint procedure) and team plan, in 8 minutes, then answer questions for 7.

Check yourself

1. Why is October Adwoa's tightest month in the forecast?
2. What is her cash break-even sales level while the loan runs?
3. Name two ethical rules every caterer or baker must keep.

1. Name four of the eight protocols the FDA code asks a food business to write down.
2. What must the person-in-charge do when two customers report illness after the same meal?
3. Give the critical limits for cooking, hot holding, cooling rice and reheating used in this manual.
4. Name three extra FDA requirements for a business with more than one branch.
5. What did the FDA tell bakers about where a bakery must not be sited and how bread must be transported?
6. Your oven holds 40 tins and each bake cycle is 45 minutes. How long to bake 160 loaves?
7. Name five terms a catering contract should include.
8. Under the Labour Act, when must a worker get a written contract?
9. What are the employer's and the worker's SSNIT rates?
10. Why is a customer deposit shown as a liability?
11. A loaf costs GH¢5.00 direct and sells for GH¢8. What are the margin and the mark-up?
12. What is the VAT question a caterer must ask the GRA before choosing the MTS?

Best next reads: the FDA's Code of Hygienic Practice and Licensing Guideline for Food Service Establishments; LEVEL 2 and 3 of the hub's Money Skills and Entrepreneurial Thinking manuals; Codex General Principles of Food Hygiene.

What this module does not cover: bottled and packaged products, product shelf-life testing and export (see Food Processing and Cold Vending Level 3); hotel kitchen management and fine dining; legal, tax and insurance advice (consult professionals).

Every source used in this manual is listed, with links, in the Teacher Copy.