Selling your product or service on credit results in debt that are owed to you. If you sell on cash on delivery (COD) then you will not have any outstanding debts or risk of debts not being recoverable. Always try and mitigate the chances of having to provide credit to your customer or client, even […]
Wow, what a serious topic but let’s not get too technical here but rather give a brief overview of the more pertinent issues relating to taxes. You or your company are taxed on your net profits. In other words: sales less expenses. This sounds easy enough however it is much more involved and technical than […]
Here are four good reasons why you should keep records: 1. Preparing tax returns for SARS All businesses are required to register for tax and submit tax returns during the year. For sole proprietors and most companies, the tax year runs from 1 March to 28 February each year. Companies can however change their year-end […]
So, you’re looking to start up something official, but which type of legal entity would be best suited to contain the magic? Here’s your options and a bit about each:
Trading as a sole proprietor If you trade as a sole proprietor your business name will be your name and surname. You can however decide to trade with another name. It might, for example, be Frankie Figs t/a The Corner Shop. Trading as a company If you decide to incorporate a company you will have […]
Except for some fear, which is normal, and subsequent adrenalin there are no legal obligations when you are planning to become self-employed. The safety net is gone. No salary at month-end. It is you and you alone who are now responsible for bringing in the sales and paying the bills. If you shy away from […]
Can’t we just all keep our money under our pillows? Then we do not have to deal with this thing called a bank and the bureaucracy that comes with it. Well unfortunately not. Banks are part of our ecosystem and we rely on them for handling our cash flow as well as funding our businesses. […]
Before starting, every new business should prepare a cash flow projection. However superficial this may sound at least this will provide you with a visual representation of what is to come. One thing to note, please do tone down on your revenue expectations. It is usually the case that you over estimate your revenue resulting […]