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 should be proud of yourself for doing that. 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. 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. Make sure you have taken care of this because the issues can lead to closure of the business and costly lawsuits. 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. By not registering the company, the law will take you as being a fraud and the charges can sink you unless you have a lot of money to get you out of the situation.
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. Ensure that there is no transaction which has not been recorded related to the business. This may be dismissed as being dramatic but it is not 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. 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.
Among the mistakes people who are in business make is deciding to complete the records at the end of the week or even month. 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. This gives rise to a whole set of problems. 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.