Financial Record-Keeping Management

 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...

In today’s world, freelancing and gig work are more popular than ever. For many, it means freedom, flexibility, and the chance to work on projects they love. But with that freedom comes responsibility, especially when it comes to managing finances. Bookkeeping might sound dull if you are a freelancer, artist, writer, designer, or gig worker, but it is a powerful way to keep your work life smooth and even help you earn more. Let us explore why bookkeeping matters so much for freelancers and how it can make a huge difference in managing your business.  Stay in Control of Your Income  One of the biggest benefits of freelancing is that you are your own boss. But being your own boss also means keeping track of your income. Bookkeeping helps you see exactly how much you are earning each month and gives you a clear picture of your business’s health. Tracking your earnings regularly will also help you spot trends—maybe there are busier months where your income goes up and slower one...

The accounting world can initially seem overwhelming, but it all starts with one simple step— Bookkeeping .  Whether running a small business or managing a large company, bookkeeping is the foundation of your financial management. What is bookkeeping?  Bookkeeping is the process of recording all business transactions. This includes sales, expenses, payments, and other financial movements within your business. With accurate records, it becomes easier to track the economic health of your company. Why is bookkeeping important?  Bookkeeping is the first and most essential stage in accounting. It ensures that every money going in and out of your business is accounted for. This is important because: It helps you keep track of your business's financial performance. It makes it easier to prepare financial statements like profit and loss reports. It helps when filing taxes, ensuring you're reporting accurate numbers. How to keep good records Stay Consistent: Make it a habit to ...