The first answer that typically comes up in my conversations with the students is tax they’ll say well taxes need to be done and you’re right for the charge to be done you have to do an accounting of the business and determine the tax liability. But is that the only reason why accounting is done? No, first of all, there’s a return on investment if a small business owner puts money into a business. The owner wants to know if he or she is, making money? Is it profitable? At some point, you want to understand the cash flow of the business. Is there any payment being made? The other part of this is accounting is done for budgeting and forecasting. When can you buy this piece of equipment? When can you start selling in this new store, when can you hire a new employee? When can you start a new product line? All these questions are answered when you’re looking through the accounting and bookkeeping of the business. Now in bad times and struggles and recessions, the accounting becomes even more critical as business owners need to make better intelligent decisions about their business. Accounting holds the information. For that what I mean is if they’re trying to find out what product line is most profitable so that they can emphasize more on that or perhaps eliminate a product line because the profit margins aren’t where they need to be. Where does that information come from? It’s the accounting now.
Here’s the second thing there have been many studies out there as to what the best home-based businesses are. So if you’re in a situation where you’re debating, I want to do this from home. Is this a good thing to do? Well, let me share this with you. There have been some studies that have shown that of all the businesses out there that can be done from home successfully, accounting business services was the number one best home based business. Year after year, time and time again and there are some reasons why. Look at it this way, when these surveys are done to evaluate different businesses that can be done from homes they look at some very key and essential factors.
Starting up an accounting and tax services business which specialize in car prototypes
First of all capital. What type of investment is necessary to start an accounting and tax services in South Africa? Well, think it through. What things do you need to begin and offer an accounting bookkeeping or tax services? Well, maybe a computer. I’m going to bet you have a laptop. I’m going to bet you have a cell phone. Now all these things that you might be able to list as to what it is you need to start your business. Your upfront expenses, business cards, business license, computer, printer, etc. All these things can be easily acquired for a few hundred dollars at most now that’s your capital operating expense to service these clients whether it be one or a few more clients. What does it cost – every month to maintain them. Should you maybe use your internet or perhaps commute by driving to and fro the clients.