THREE (3) THINGS YOU MUST CLOSE OUT AS A BUSINESS OWNER IN early 2024!

The new year is here, and most business owners have already rounded off (or almost rounded off) business activities from last year and are preparing for the new year.

THREE (3) cogent areas are very important for you to close out if you don't want to get into trouble in the New Year.

First, consider your YEARLY BUSINESS PERFORMANCE.

You properly had a lot of hustle and bustle, activities, interactions, and transactions in your business throughout the prior year.

And really did not have enough time to put your books in order.

You probably have some records here and there, but can you really tell if 2023 was a profitable year for your business? By what rate, is the profitability, if any? And to what extent have you improved vis-à-vis last year?

What is your gross and net profit margin, sales growth rate, returns on equity, and returns on Capital employed?

What is your EBIT, EBITDA, Free Cahsflow (FCF), Liquidity Margin?

What's your gearing level? Are you overtrading or overcapitalized?

What is your cash burnout rate?

You need to have your accounts prepared and analyzed so you can make informed decisions.

A business that is not growing and is unaware that it is not is an instance of fruitless hard work!

Second, you need to closeout YOUR TAX position

The 2024 tax return period becomes open on January 1, 2024.

Employers are required to file returns comprising Forms H1, H2 and G for their employees. The returns detail the income paid to and taxes deducted from and remitted on behalf of employees to the tax authority.

Every individual with income, whether from employment or self-employment, through business, vocation, profession or investment, is required to file a Form A return on or before March 31, 2024.

The return contains, in addition to personal biodata, details of income made during the year from all sources and relevant business and nonbusiness expenses for the 2023 financial year.

Companies are also to file their corporate tax returns within six months from the end of the financial year.

Severe penalties exist for noncompliance, including penalties and interest that can be as much as (sometimes more) the tax outstanding

You would also not be able to get your tax clearance certificate (TCC) if you did not file your returns with the tax authority

Preparation for this needs to start now. So you would be able to comply within the time allowed by the law

The third thing you need to focus on is YOUR CAC compliance

CAC is the registrar and custodian of records for all businesses operating and registered in Nigeria. It gave your business its BN or RC Number, as the case may be.

The law requires that you file annual returns with the CAC to show that you are still in business or have the intention of doing so. Consistent noncompliance may lead the CAC to delete your business/company's name from its records, simply telling the public that you no longer exist. The CAC has already initiated this latter step.

To discuss more about this or how we can help, please call or send a chat at 0706-705-8719 or 0916-959-3963.

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