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? You need to take pride for making it that far. However, working for yourself may require a lot of sacrifices but it is more rewarding. Apart from working on the field you have chosen, you will have to take care of legal issues as well as the financial aspect of the business. You ought to take care of these aspects because ignoring them may mean the end for your business and being involved in never-ending 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.
For registration, make sure you are well conversant with the requirements in the region you are operating in. In some areas, you cannot just register the company when you feel like and that is why you need to have the right information when registering. You need to record all the transactions involving your business. Some people may deem this as a dramatic measure but it is rarely the case. In any case, money should be recorded whether it is a payment or income. 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. Besides legal issues, you will be a better record on how much money you are expecting or the debt you have. Getting high sums on a daily basis should not be taken to mean your business is fairing on well when you have high debts.
Among the mistakes people who are in business make is deciding to complete the records at the end of the week or even month. 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. Therefore, record the information immediately you get the receipts of doing it at the end of the day. If your books of account are updated all the time, you will be making sound decisions when it comes to finances and this can be a tool to take to financers in case you need financial aid.