Tax liabilities are current liabilities which are treated as short-termdebts that must be paid within a year. Generally, you incur shorterm liabilities from normal business operations. Failing to pay a Tax debt can result in back taxes, a tax lien, penalties,…
Importance of Management Accounting
Management accounting also known as managerial accounting can be process of providing financial information and resources to the managers in decision making.
Management accounting is use internally in organization, so, this makes it different from financial accounting. In this process, financial information and reports such as invoice, financial balance statement is shared with the management team of the company.
Objective of management accounting is to use this statistical data to take better and accurate decisions, controlling the enterprise business activities and development.
Management accounting is the presentation of financial data and business
activities for the internal management of the organization. Management
accounting is the application of professional skills and knowledge in the
preparation of financial and accounting information in a manner in which it will
assist the internal management in the formulation of policies, planning, and
control of the operations of the firm.
The basic function of management accounting is to help the management make
decisions. There is no fixed structure or format for it. Financial accounting,
costing, business analysis, economics etc are some tools and techniques of
management accounting.
Management accounting is the process of preparing and producing the financial
reports for managers and business owners and it can be prepared weekly,
monthly, quarterly or annually. They can be more personalised to your
individual organisation’s requirements than the formal year-end financial
reporting process. Whilst there is no set rule on when management accounts are
prepared, they are usually produced on a monthly or quarterly basis to allow
business owners to regularly monitor their finances.
Most companies produce management accounts because they need to examine
the financial health of the organisation. Preparing monthly management
accounts is good business practice. They give a snapshot of your business
position and can act as a benchmark to compare past and future performance.
Up-to-date, accurate business information is vital to sustainable growth.
Leadership teams need to make decisions based on evidence, they cannot
simply rely on their intuition. They need facts and figures to determine the
reasons behind underlying problems, to assess the different options for taking
action and, if necessary, changing course.
SCUML Certificate in Nigeria To register for your SCUML certificate in Nigeria, kindly vistit SCUML website, www.scuml.org click on the tab “Register online”. Fill the registration Form and attach the required documents listed below: LIMITED LIABILITY COMPANIES: Certificate of…
How to Register SCUML Certificate To register for your SCUML certificate, kindly vistit SCUML website, www.scuml.org click on the tab “Register online”. Fill the registration Form and attach the required documents listed below: LIMITED LIABILITY COMPANIES: Certificate of Incorporation…
CAC TO DELETE ABANDONED APPLICATIONS ON THE COMPANIES REGISTRATION PORTAL (CRP). It has been observed that a sizeable number of application have been filed and abandoned in the Company Registration Portal (CRP) as a result of queries that has not…
Tax Consultant in Lekki Ajah About Us The firm is a Limited Liability Company registered with the Corporate Affairs Commission (CAC) in Nigeria. Methodology SOW Professional is an independent Tax Consultant in Lagos, Nigeria. The firm takes full service approach…
Small Business Taxes in Nigeria
When starting a business, one of the things that most small businesses in Nigeria do not really think about is paying taxes.
While some may seem to be unaware of taxes, many voluntarily omit the payment of taxes in their operations and budgets.
WHAT IS TAXATION? Taxation is the practice of collecting taxes (money) from citizens based on their earnings and
property. It is when a Government imposes a financial obligation or levies on its citizens or residents. However, studies
show that close to 80 per cent of small and micro businesses in Nigeria shy away from paying taxes, a situation the government
has over the years tried to rectify. While business owners often struggle to understand why they should contribute to an
administration which appears to throw frequent obstacles in their way, taxation is a certainty with penalties that hurt businesses
when they are caught evading tax.
Small Business Taxes in Nigeria
Business taxation is essentially the tax businesses pay to the government as part of their obligations. It is important that every
business pay taxes, whether it falls under Sole Proprietorship, Partnership, Limited Liability or a Corporation. Your business is
responsible for abiding by the tax regulations as provided by the country.
In Nigeria, all persons in employment, individuals in business, non-residents who derive income from Nigeria, and companies
that operate in Nigeria are mandated to pay tax. The tax regime in Nigeria is administered by the three tiers of government –
Federal, State and Local government taxes. Federal Government Taxes include- Companies Income Tax
(CIT), Value Added Tax (VAT), Capital Gain Tax, Stamp Duty Tax, Education Tax, and Petroleum Profit Tax amongst others.
State Government Taxes include:- Personal Income Tax, Business Premises Tax, Development levy.
Local Government Taxes include:- levies and rates. Businesses, whether small or micro have to figure out which
taxes is applicable to the business that they are involved so as to enable them calculate the correct taxes to pay.
Each tax comes with its percentages thus, how much a business makes a year can also determine how much to remit to the
government. Also with the new Finance act which excludes some micro businesses from some taxes, you need to know the taxes to
pay, how much, and the penalties when the taxes aren’t paid on time.
Why does my business have to pay tax?
NUPRC Permits Registration in Nigeria Nigerian Upstream Petroleum Regulatory Commission (NUPRC) formally known as Department of Petroleum Resources (DPR) is the body that has the statutory responsibility of ensuring compliance to petroleum laws, regulations and guidelines in the Oil and…
TIN Processing in Nigeria A taxpayer identification number (TIN) is a unique eight-digit number used to identify an individual, business, or other entity in tax returns and other documents filed with the tax Authority. A TIN is typically issued by…
CAC ANNUAL RETURNS FILING
An Annual return is a mandatory requirement that every business name, company or incorporated trustee in Nigeria must fulfil at least once every year to the Corporate Affairs Commission (CAC) in other to keep the commission abreast that, the organisation is still active and in existence.
It is not showing the profit your company made in a year, it is not a financial document, but rather a yearly statement by an active registered business name or company which is meant to keep Corporate Affairs updated about the company’s activities, composition, and its financial position.
Chapter 16 of the Companies and Allied Matters Act (CAMA 2020), covers everything pertaining to filing returns.
Section 418 of CAMA 2020 states: the annual return by a company having shares other than a small company shall contain with respect to the registered office of the company, registers of members and debenture holders, shares and debentures, indebtedness, past and present members, directors and secretary, the matters specified in Part I of the Seventh Schedule to this Act, and the return shall be in the form set out in Part II of that Schedule or as near to it as circumstances admit.