Financial Record-Keeping Management

You started your business with a vision to build something that lasts, to create value, and to achieve financial freedom.  But here is a question worth asking: Do you actually know your business's true financial state right now? If the answer makes you uncomfortable, you are not alone. Many Nigerian entrepreneurs , from small shop owners to fast-growing startups, run their businesses day-to-day without a clear picture of their finances. They track revenue through phone transfers and expenses through memory. They file taxes when reminded, and hope the numbers work out. This approach might work for a while. But eventually, it catches up with you, and the consequences can be severe. Clean financial records are not a luxury for big corporations. They are a necessity for every business that wants to survive and thrive in Nigeria's competitive and regulated economy. What “Clean Financial Records” actually means Clean financial records simply mean having an accurate, up-to-date, and...

 If your business is operating in Nigeria, it is essential to understand the country’s VAT (Value-Added Tax) rules. What is Value Added Tax? VAT is a consumption tax in Nigeria that is applied to most products and services sold within the country. When selling products or services to Nigerian customers, you are required to add VAT to the sale. What is the VAT rate in Nigeria? Currently, the VAT rate is set at 7.5%, it was increased from 5% as of February 1, 2020. Who pays VAT in Nigeria? VAT is paid by the final consumer. All goods and services produced within or imported into the country are taxable except those specifically exempted by the VAT Act.  Sales Registration Threshold In Nigeria, there is an annual sales registration threshold of NGN 25,000,000. This means: If your total sales in Nigeria are below NGN 25,000,000 in any rolling 12-month period, you don’t need to register for VAT. If your sales exceed NGN 25,000,000, you must register for VAT and comply with l...