In this piece, I shall be walking you through the importance of financial and tax management for start-ups in Nigeria. In recent times, Nigeria has risen to be one of the leading business locations in Africa; most significantly for start-up businesses.
Business in Nigeria is a wonderful experience when your business venture succeeds, however before success there could be great challenges and difficulties that a new business or startup must face, one of which is usually financial and tax management.
However, I will be focusing on problems resultant from the lack of understanding the financial and tax management for start-ups in the country. Most start-ups do not succeed because they do not keep proper financial records of their business from the onset. More attention is usually on the product and market development, failing to understand the underlying financial flow of the business. Owners of these businesses fail to understand how important financial and tax management is in building the foundation of their businesses.
For start-ups, investors are important in raising funds to develop their products and services and grow their business. However, Investors majorly depend on Financial Statements to determine if the business is viable for investment. Therefore, start-ups must keep records of all transactions for analysis in aiding the investors’ decision making.
Proper financial management also provides adequate information to help start-ups determine their tax liabilities and make a favourable tax plan for their business. Most start-ups usually fail to comply with tax laws and regulations mostly due to lack of financial information. A large percentage do not register for Federal and State taxes.
Without adequate knowledge of how to handle the tax angle of your business, it could lead to exposing your business to large tax liabilities and penalties, which may eventually cripple the survival of the business.
Taxaide’s strength lies in providing effective, efficient and seamless tax management services to enable taxpayers which includes individuals or organisations meet their tax obligations and help their businesses thrive.
Let’s get started in helping your business financially succeed; send us an email at email@example.com or call us on 0700TAXAIDE.