For many customers in Kenya, paying by M-Pesa is the default. A till number or a Paybill account lets a business take those payments in an organised way, with its own statement, instead of relying on a personal phone. Setting one up is straightforward, but it works best when you choose the right one, set it up properly and reconcile it regularly. Procedures, fees and requirements change, so check with the provider.

Till or Paybill: which one?

A till number (Buy Goods) suits businesses that sell goods or services directly to customers at the point of sale, such as shops, restaurants and salons. Customers pay without entering an account number. A Paybill suits businesses that bill customers for accounts or invoices, such as schools, landlords, utilities and subscriptions, where each payment must be matched to a customer or account reference. Some businesses use both. Think about how you need to identify each payment.

What you usually need

Providers ask for documents that show the business exists and who runs it. Typically these include a business registration certificate or permit, the KRA PIN certificate, the identification of the owners or directors and proof of a business bank account. Prepare them in advance. A business that is properly registered and compliant has an easier time; see starting a business: registration and tax steps and business licences and permits in Kenya.

Choose who can access it

Decide who has authority to view statements and move funds. Limit access to people you trust, and consider a two-person approval for withdrawals if the system offers it. Do not share the credentials of the main account; create separate users with the right level of access.

Understand the fees

Each type of account has its own charge structure, and fees may be charged to the business or to the customer in some cases. Fees on transactions and on withdrawals add up, so include them in your costs. Business bank charges for settlement also apply. Fees are generally deductible business expenses if you keep a record; expenses small businesses can deduct lists qualifying costs.

Settle regularly to your bank

Money collected on a till or Paybill is held in the business account and can be settled to your bank. Decide how often, such as daily or weekly, and keep to it. Leaving large sums sitting on an account increases risk. Record each transfer so your cash records stay complete.

Reconcile daily or weekly

Match the statement with your sales records. Each payment should correspond to a sale, a customer payment or another known item. Differences suggest unrecorded sales, wrong entries or fraud. The M-Pesa till reconciliation lines up the statement and your records, and how to use M-Pesa statements to prove income and expenses shows how to read it. Keeping records with M-Pesa Business covers the wider routine.

Tax and VAT records

Your M-Pesa statement is evidence of income, so keep it with your records for the period required; see keeping tax records for five years: digital vs paper. Sales received by M-Pesa count as sales for turnover tax and VAT, so include them. Test your position with the turnover tax calculator and the VAT calculator. Where electronic invoicing is required, issue the proper invoice for each sale, not just rely on the payment message; see bookkeeping in the eTIMS era.

Handle refunds and mistakes

Customers sometimes pay the wrong amount or the wrong account. Have a clear procedure: verify the payment, record the reversal and keep the evidence. Refunds should be authorised by a manager and recorded against the original sale. The sales return and refund tracker keeps track.

Keep personal and business separate

Do not mix the till with a personal wallet. Mixed use makes records unreliable and invites questions about your income. Separating business and personal money explains why. Pay yourself a set amount from the business account and record it as drawings.

Protect against scams

Fraudsters send fake confirmation messages. Always confirm the payment on your till or statement, not only on a customer's phone. Train staff to do the same, and never release goods based on a screenshot. How to protect your business from fraud and theft lists more controls. A well-run till or Paybill gives you a clear, searchable record of your income, which helps with tax, lenders and your own decisions.