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. Remember that being your own boss does not mean you have to do as you please but the better part is that the rewards are worth the sacrifice. You will have to take care of legal and financial issues of the business besides doing the real work. Do not dare ignore this because they can sink your business very fast meaning all the work you have done will be in vain. You should not be worried just because you are not a specialist in these areas because you can always teach yourself about it. You need to start by registering your company. If you do not do that and you are caught, you will be charged with conducting a fraudulent business.
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. This may be dismissed as being dramatic but it is not the case. if there is some money being paid to you or you are paying, the records need to be written down. You will need this when you are filing your returns. You can use the records as evidence in the court of law or even to get tax relief. The records are useful in determining how much is owed to you and the amount you will have to use in paying back debts. There are people who get a lot of money on a daily basis making them think that the business is doing well when in the real sense they are in debt.
One of the major mistakes new entrepreneurs make is pushing off the recording work up to the very end. The danger lies in the fact that you are likely to forget some of the entries. 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. You will have financial books which are updated all the time which ensures you make sound financial decisions.