The Guidelines for Being Self Employed.
Have you decided to take the leap of faith and start your own business? Have you finally decided to ditch your employer and be your own boss? Are you starting out on your own business after making the decision to ditch working for someone else? Congratulations for making it to that point. What you should know is that you will need to make a number of sacrifices in order to excel but the good thing is that you will get great returns if you persist. You will have to take care of legal and financial issues of the business besides doing the real work. Make sure you have taken care of this because the issues can lead to closure of the business and costly lawsuits. You should not worry about not knowing because there is always a way to learn. You need to start by registering your company. In case the law catches up with you operating a fraudulent company, you will be charged as being a fraud.
You need to have the information about company registration at the region you are running the business from. There are rules regarding when the companies can be registered and you should comply with these to be on the safe side of the law. It is advisable that every transaction carried out in the name of the business be recorded. Some people may deem this as a dramatic measure but it is rarely the case. Anytime money changes hands, whether coming in or out, has to be factored in. You will need this when you are filing your returns. The business may be sued whereby the financial records are required to be submitted to the court and you may even bring them to light when filing for returns in order to get relief. In addition, the records give you a clear picture of how much you have not received from your clients and also if you are in debt. Many people are fooled into thinking they have a lot of money when in the real sense they are high in debts.
Do not decide to roll off the recording job to the end when you think you will have time. It is easy to forget some of the entries if it has taken a long time. With forgotten entries, you will never get balanced books. You will have a new issue on hand to deal with if your ledgers are in a mess. Make sure you record the payments as they come or latest at the end of the day. Make sure you are keeping updated books of accounts every time for easy business operations.