KEEPING ACCURATE AND UP-TO-DATE FINANCIAL RECORDS: The significance of this cannot be overstated, as it enables you as a business owner to determine whether or not you are generating profits, enables you to set higher goals, and makes your organization appealing to prospective investors.
TIMELY PAYMENT/FILING OF RETURNS & RENEWAL OF LICENSES: As soon as you register your business, you are required to file annual returns. Additionally, some sectors, such as the oil and gas sector issue annual permits and licenses to businesses that operate within that sector.
Failure to promptly file your returns or renew your licenses would result in penalties or fines, that will be deducted from the business’ profit, therefore we recommend that you take the necessary steps to avoid losing money.
PAY YOURSELF A SALARY: One of the biggest mistakes most business owners make is not compensating themself or paying themselves a ridiculous amount. Their argument is always that they intend to reinvest the profits; hence, the willingness to work without compensation. Ironically, when a need arises, they are forced to withdraw funds from the business to cover it. The issue with this is that, without adequate record keeping, they would not understand whether they have deducted the money from the capital or profits, and they tend to overspend since all their funds are lumped together. Eventually, the business either ceases to exist or remains stagnant. Therefore, in order to grow and expand your business, it is crucial that you pay yourself a salary from the outset or as early as the business can afford it.
