OTN Consulting:

Why Sage 50 Quantum(Peachtree Quantum) May Be Your Best Option

2014-02-19T12:05:00.000+01:00

Are you outgrowing your software?

Sage 50 Quantum is a cost-effective accounting solution that scales to fit your needs.

Do you need to get up and running quickly?

Sage 50 Quantum makes data transfer simple and reliable to quickly get you working fast.

Do you need to reduce your software costs?

Sage 50 Quantum provides more value for your money.

Do you need more than just accounting software?

Sage 50 Quantum does more than just crunch numbers. It is a business management solution that delivers greater visibility, enhanced analytics and improved workflow.

Do you need customized reports?

Sage 50 Quantum offers more 140+ customizable reports.

Do you need good customer support?

Sage Peachtree Quantum provides training and support via our highest level of Customer Support Analysts via phone and email.

Do you need the software to be easy to use?

Sage 50 Quantum is one of the easiest accounting software solutions to use – and we back it up with a no risk, 90 day, money-back satisfaction guarantee.

Contact: 08024768668, 08155554892

Basic Features of Sage 50 Quantum (Former Peachtree Quantum)

2014-02-15T11:47:00.000+01:00

Sage 50 Quantum offers you a value-priced, multi-functional accounting and business management software solution for your company.

Financial Management

Sage 50 Quantum is designed to be fully compliant with generally accepted accounting principles (GAAP), with features and checkpoints that provide the accuracy and security to run your business with peace of mind.

Customer Management

Manage and nurture your business’ interactions with customers and prospects by organizing, automating, and synchronizing customer-related business processes, as well as reducing costs of marketing and customer service.

Inventory and Vendor Management

Sage 50 Quantum helps you manage the delicate balance between the cost and benefits of inventory. The true cost of carrying inventory, such as storage, insurance and taxes, can have a significant impact on your business’s profitability.

Employee Management and Payroll

Sage 50 Quantum saves you time and reduces errors by keeping track of your employees’ information in one place. Centrally maintain detailed employee records, such as hiring data, demographic information, performance reviews and more….

Jobs Management

Sage 50 Quantum offers helpful tools to optimize your business processes, manage resources, track projects, tasks and time, and put your business in the best possible position for improved profitability and sustainable growth.

Analysis Tools and Reporting

Sage 50 Quantum provides premium features that allow you to access information quickly and create detail reports easily. As your small business needs develop, so does your need for specialized reporting and analysis tools.

Workflow Management

Keep everyone informed in real time of all the details in your sales and purchase processes so that you can instantly know where your order is, when it’s due, and who’s handling what. Customize triggers, steps and statuses that are crucial.

Security and Multi-User Management

More users mean more security concerns. Sage 50 helps ensure sensitive security data and lets you control which users have access to which data and features.

Industry-Specific Solutions

Sage 50 Quantum offers features for companies in industries such as: Manufacturing, Distribution, Construction, Nonprofit and Accounting.

Multiple Users

Sage 50 Quantum can accommodate up to 40 Users the defined users rights for security purpose

Visit www.otnconsultinglimited.com or call 08024768668

System Requirements for Sage 50 (Peachtree Implementation)

2014-02-11T12:16:00.000+01:00

From our experience, we have discovered that a lot of companies just decided to buy accounting software without taking into consideration whether they have adequate infrastructure to support the system. For companies that plan to implement Sage 50 (Peachtree), below are the system requirements:

Recommended System Configuration
2.4 GHz processor for single user and multiple users 1 GB of RAM for single user and 2 GB for multiple users

Minimum System Requirements

· 2 GHz processor for single user and multiple users

· 1 GB of RAM for single user and multiple users

· Windows® XP SP3, Windows Vista® SP1 or Windows® 7 Home Professional or higher

· 1 GB of disk space for installation

· Internet Explorer 7.0 required; Internet Explorer 8.0 and 9.0 supported

· Microsoft®.NET Framework CLR 3.5 requiring an additional 280 MB to 610 MB

· At least high color (16-bit) SVGA video; supports 1024x768 resolution with small fonts required

· DVD-ROM

· All online features/services require Internet access with at least a 56 Kbps modem

Integration/Compatibility Requirements

· Excel®, Outlook®, and Word integration requires Microsoft Excel, Outlook, and Word 2003, 2007, or 2010

· Outlook Sync supported in Exchange 2000 SP2, 2003, 2007 and 2010

· In-product demos require Macromedia® Flash™ Player

· Adobe® Reader® 9.0 or higher required

· Crystal Report® 2008 SP1requiring an additional 300 MB of available disk space

Multi-User

· Multi-user environments supported in Sage 50 Complete Accounting and higher

· Multi-user mode optimized for Windows Server 2003 or Windows Server 2008 client-server networks

· A maximum of five licensed named users allowed

· 1 GB of disk space for installation of components on server

Terminal Services

· Windows 2003 or 2008 Server along with Remote Desktop Connection or Remote Desktop Web Connection client is required to run in a Windows Terminal Services environment. No more than 5 named users are allowed.

· Terminal Server requires additional memory when more than one user is running under Windows Terminal.

Internet connectivity necessary for program updates and some other features

Visit www.otnconsultinglimited.com or call 08024768668

Online Accounting Software

2013-12-29T21:21:00.002+01:00

Historically, firms were required to buy, build, and maintain their IT infrastructures despite exorbitant and exponentially-rising costs. This presented a definite disadvantage to small or startup firms with limited financial resources. The cloud gives firms and companies of all sizes a revolutionary alternative. With the cloud, users can plug in and subscribe to services built on shared infrastructure via the Internet. The benefits are plentiful, and all you need to access QBO (QuickBooks Online) is one of the supported browsers.

Few of the benefits of QuickBooks Online are listed below:

As the business owner, you can manage your books from anywhere. For business owners who travel regularly or business owners doing their books at night at home (like so many of us), this is a real benefit.
It’s Affordable – You’ll experience cost efficiencies. Since it is subscription-based, there are no license fees, meaning lower initial costs. You pay a lower recurring monthly payment, instead of paying a software license fee up front. QBO’s support is free, included in the cost of the subscription. In addition, having a them manage all your IT infrastructure means lower IT costs for hardware, software, and the people needed to manage it all.
QuickBooks Online is especially good for businesses with a distributed workforce. If you have employees or independent contractors working from home or from remote locations they can have access to the software as needed (up to 3 simultaneous users, plus your accountant or up to 20 users for an additional fee). For instance, you or your employees can create estimates directly at a customer’s site using a laptop.
You can even give hourly employees or independent contractors the authority to log in for the limited purpose of filling out timesheets. Then you can process payroll or contractor payments easily.
QuickBooks Online makes it easy to share data with an outside accountant. For instance, if your accountant helps you close or balance your books each month or quarter; you don’t have to hassle with exchanging data. Your accountant logs in from his or her office and can nip errors in the bud by following an activity log. Your accountant can even log on simultaneously with you to show you how to do something.
Automatic Backup and Upgrades – You and your clients will save enormous amounts of time not worrying about backing up data, taking it off-site, or upgrading the data and software to the latest version or release. It’s all done for you with QuickBooks Online.
You do not have to install software on your hard drive.
You get support included in the monthly fee. The website says that if you submit a question via email, they usually get back to you within 30 minutes.
Another helpful feature: when you log on to QuickBooks Online, there is a small widget that appears on your screen with the latest QuickBooks forums discussion. You can see questions from others (questions you also may have) and be able to get answers. Or you can ask your own questions of the community. (www.otnconsultinglimited.com)

Accounting Software: A luxury or Necessity?

2013-06-21T10:18:00.001+01:00

There are times when virtually everyone asks themselves if they need some form of accounting software to help organize their financial lives. We know that accounting and bookkeeping are some of the significant features of every business. Business execution goes beyond the boundaries of marketing and sales. Every penny earned has to be accounted. A formidable system has to be implemented in every company to take care of both cash inflows and outflows. Modern day business owners count it necessary to impart technology into the infrastructure of their company. The popularity of implementing accounting software has greatly increased in the current marketing scenario. Several online websites claim to provide the most appropriate assistance to several business entities. One has to choose the most optimal application for his trading house. The requirement of every industry differs from one other. A financial application which suits the industry requirements should be implemented for managing its proprietary calculations.

Accounting software should provide your organization with flexibility in use. Any application which is rigid and does not adapt to the organizational structure is inappropriate for being implemented. One has to ascertain its security parameters as well as the accessibility it affords, prior to making it a part of organization's financial planning. Choosing an uncomplicated financial application will be effective in keeping track of corporate cash flows. It is optimal to select an application which would provide assistance to several types of businesses. It could be used in tracking cash outlays of projects as well as in the financial planning process of any trading entity.

Recognized bookkeeping software such as Sage Peachtree Accounting Software has helped many business owners in managing their finances. Choosing a reputed application will help you manage your finances with precision. The area of accounting requires adherence to high accuracy. Implementing a renowned application in any entities shall enable to manage its cash flows in confirmation with the latest accounting standards. With such software being imparted in your business, you can be absolved from the worries of hiring a chartered accountant. Employing financial professionals in small trading entities could be an expensive affair. Unlike many big corporate entities, small trading houses cannot afford the fees of professional accountants. An optimal cash program can save a small firm from the worries of hiring a financial expert.

Reputed accounting software for small business like Sage Peachtree Accounting Software has provided assistance to many businesses in maintaining their ledgers. The software renders high degree of transparency for satisfying any audit trail. Having limited accounting knowledge is no longer an area of problem in the current scenario of advanced technology. You can easily outsource your accounting and bookkeeping to a firm that is reputed in handling such functions. It would be prudent to carry out a fully-fledged research before selecting accounting software but it is always better and safer if you allow a professional to advise you.

If you need assistance, feel free to contact us. Call 08024768668 or send mail to info@otnconsultinglimited.com

Sage Peachtree becomes Sage 50 Accounting

2013-06-19T09:51:00.000+01:00

Sage Peachtree has become Sage 50 Accounting. The same trusted solution has a new identity this year along with several other exciting features. New this year from Sage you will find tools to solve everyday issues and that allow you to adapt Sage 50 to meet your needs.

Convenient Bank Reconciliation- Now you can do bank reconciliations more easily when you need to and regardless of your company’s current accounting period. This allows you to work more efficiently, eliminates after-hours and weekend reconciliations, helps prevent posting errors in prior periods, and saves you and others time because users can work in the current accounting period while you reconcile in another.

3 User Option- Save money by getting the best fit for your company. Sage 50 Complete and Premium Versions now comes with 1,3 or 5 user options to give you exactly what you need.

Expanded Amount and Currency Field Lengths- Record amounts up to $99,999,999,999,999.00000 on transaction screens, list views, dashboards, reports, forms, account register and the maintain inventory item history tab screen.

Sage 50 Business Intelligence Enhancements- Enhancements to Sage 50 Business Intelligence let you spend more time gaining insight about your company and less time exporting data and formatting it into something you can use. The enhancements include:

The new Inventory Analysis Report which offers real-time inventory information that helps better forecast consumption of goods and manage the supply chain

The Dashboard which provides a graphical summary of Key Performance Indicators, such as profit/loss, top 5 expenses, top 5 customers, etc.

The Report Designer which lets you create your own unique layouts for Financial Reports using simple drag and drop functionality

Inactivate Multiple Vendor Records- Quickly identify and deactivate old or unused vendor records all at one time. The Set Multiple Records as Inactive tool results in faster searching with less scrolling during data entry, improves lookup performance by better managing your list of vendors, and makes it easier to clean up your database and complete year-end tasks.

Shop for products to grow and protect your business with professional, expert, certified help from OTN Consulting.

Not sure about which product is right for you? Call now at 08024768668 or send mail to info@otnconsultinglimited.com.

Sage 50 Peachtree Accounting Software (2013 Edition) – New Features

2013-06-04T11:28:00.000+01:00

Many people still get confused when you mention Sage 50 to them. They usually ask for Peachtree as an alternative accounting software. The news is that Peachtree Accounting Software is now Sage 50. It is the same Peachtree Accounting Software you used to know but with some new and enhanced features such as:
Company Configuration

A new optional process to help guide you through the setup of you software has been designed.

Help Centre

New search engine providing up-to-date help topics and information has been added.

Simplified Monthly and Year End

The process has been improved and made easier to understand. The screens have been redesigned and will provide help where needed. A big request was to be informed when a task was completed so this has been introduced.

Quick Tasks

Three new elements have been introduced.

- Invoices, quotes, sales and purchase orders can be created more quickly from the product list.

- There is increased automation for common processing tasks - for example sales/purchase orders and invoicing.

- You can process a 'cash sale' whilst updating stock levels from within the invoicing module.

User Interface and Language

Over 1,000 function/ feature labels have been updated and improved to ensure users know what they're doing without the need to know accounting terminology or abbreviations.

Reporting Improvements

- A new user interface with an updated look and feel has been created.

- Excel improvements now allow you to get financial information without spending hours manipulating the data.

- There are now accurate report descriptions, previews filters and action buttons.

- You can now send invoices by email without having to go into the Report Designer.

- A customised reporting function allows you to create more professional looking reports.
Contact Us for Sales, Installation, Customization, Implementation and Training. www.otnconsultinglimited.com, info@otnconsultinglimited.com. 08024768668

Why you need a consultant

2013-01-09T06:00:00.000+01:00

My business is a small business that is just starting or about to start and you are talking about having a consultant! I would rather use the money to pay a consultant to settle other bills. Those are the thinking of average Nigerian entrepreneurs! Instead of seeking professional advice that will prevent them from making costly mistakes, they are ready to risk drowning in an unfamiliar business terrain. That is why some will not mind losing their entire capital on a wrong business venture or as a result of wrong business decision. It still amazes me why one will be more comfortable losing say five hundred thousand naira than paying a little amount in order to ensure that he is doing the right thing. The truth of the matter is that, every decision you make in business has its own implications; some of which you may be ignorant of. But your ignorance will never exempt you from the effects of the consequences of your action.

A good consultant is there to guide you. His main focus is to see you grow and become successful. He knows that his own success depends on your success. Let me share this story with you. Somebody approached me in the month of December 2012. He wanted me to handle a particular job for him very urgently. What an opportunity for me to earn some income as I actually needed some amount to meet the end of the year expenses. But on critical assessment of the situation, I advised him not to rush into the transaction. Ordinarily, there is nothing wrong about his decision. It was absolutely okay. But I realised that if only he could defer his action by just two weeks, he will save nothing less than fifty thousand naira. Initially, he didn’t understand my own viewpoint because he needed somebody who can act with speed on his instruction. At the end of our brief discussion, he came to the realisation of why he needed to defer his decision. Good enough, this advice cost him nothing. The only thing is that, there is an understanding that I will be the one to handle the job for him in January.

Points to Note:

· The benefits you get from a good piece of advice is not comparable to the benefit you enjoy either in term of cost savings or improved revenue

· You are not paying for the length of the information neither are you necessarily paying for the length of time it takes the consultant to complete the assignment. The key point is the VALUE and QUALITY of information made available. For example, a consultant may charge you fifty thousand for instructing you what you can do to increase your earnings or bottom line by five hundred thousand naira. The advice may only take him below thirty minutes. Even though he spends a short period in rendering such service, he had actually spent long hours researching and acquiring the necessary knowledge and skills that enable him to provide you with such valuable information.

Conclusion

You don’t need to grow big before seeking for professional advice. You actually need consultants to grow. The early you recognise the need for consultant(s), the better for your business.

For Consultation: Call 08024768668

Don't Pay Taxes More Than Necessary

2013-01-02T17:50:00.000+01:00

It is expected that every responsible individual and corporate body should pay tax as their obligation to the government. There is nobody that does not pay tax in one way or the other either in form of direct taxes or indirect taxes. While direct taxes can be avoided to certain degree, indirect taxes are not easily avoided as individual pays at the point of purchase of taxable items. It is basically a consumption tax.

Government will only tell you to pay your tax or will even penalize you when you don't pay expected amount or when you delay in making such payment. Do you know that the same government is happy when you over-pay taxes? Even though they know you have over-paid, they will not let you know about this.

That is why it is good to employ a competent tax practitioner who can advise you on the amount which is appropriate to be paid as taxes. A good tax practitioner will even help in tax planning so that you can make some savings without breaking any law. Unfortunately, some individual counts the fee they pay to tax practitioner as additional burden.

A good tax practitioner is never a burden but a partner in progress for you and your business. If you think having a tax practitioner is a burden, it is possible you have not made the right decision. Don't allow government to ride on your ignorance.

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Secrets of Successful Entrepreneurs

2012-12-24T10:30:00.000+01:00

You may be wondering if I have concluded the series on’ why some businesses fail’ which I started few days ago. I have not concluded it of course! The reason number two I gave which is ‘funds mismanagement’ led to this article. I reasoned that it is necessary to do more justice to the point so that people can know how to prioritize better.

For this reason I will be sharing with you the business strategy by Harvard professor, Lan Macmillan, which he called ‘the strategy of asset parsimony’

This strategy is actually a very good startup business model especially for entrepreneur with limited resources. So, what did Lan Macmillan say about this strategy. The strategy is in form of commandments as it spells out ‘don’ts’ about business. Below are the guidelines of the strategy:

Do not buy new what you can buy secondhand

We all know that anything bought secondhand is less expensive than new items. With the types of goods we have in the market today, some secondhand goods are more durable than the new ones. Buying secondhand items does not necessarily imply that you are buying inferior items. Even, if the value is not as high as that of the new ones, you can still make use of secondhand in as much it delivers desired results. By the time you stabilize and are ready to buy new, you can even discover that what you would have bought new by spending huge amount of money that time is now outdated.

Do not buy what you can lease

This is a vital source of finance for companies. Unfortunately, only few people know about this or make use of the opportunity. Instead of outright purchase of equipment, you can actually lease the equipment from a leasing company. Instead of huge cash outflow at a time for the purchase, you only need to pay rent which can be monthly, quarterly or annually depending on the agreement. This will not only ease your liquidity; it will also afford you the opportunity to use the equipment and get to know its features before embarking on the purchase of your own.

Do not lease what you can barter

Have we forgotten trade by barter? This used to be a means of exchange before the advent of money. You look for somebody who needs what you have, the person exchange it for what he has that you are in need of. If there are items such as furniture, computers and other assets that you are not using, why can’t you exchange it for what you need? You don’t need to do this in a traditional trade by barter. The best way to do this is to sell those items and use the proceeds to buy what you need.

Do not barter what you can borrow

If you can easily borrow what you need without any stringent conditions attached, then you might not need to dispose your assets as they can still be useful in the near future.

Do not borrow what you can salvage

There is something with borrowing. Any time you borrow, you become a debtor to the lender. Even, if the person is not expecting repayment, you owe the person the credit which you might need to pay in another form.

Do not salvage what you can get for free

You will agree with me that it takes some efforts on your part to salvage. So, if it is something you can get for free, why not? You can use your time and efforts on other productive things.

If you apply this strategy, you will discover that you can actually achieve much with whatever resources you have.

For consultation: visit www.otnconsultinglimited.comor call 08024768668

Why Some Businesses Fail (Part 3)

2012-10-17T07:00:00.000+01:00

Why is it that we focus attention on this topic? Why do we talk about business failure? I like to inform you that we are not pessimists. We are positive and we are actually interested in the success of your businesses. The truth is that if you don’t know what can make your business fail, you will not know see any need to avoid such it. Perhaps you have been involved in such thing you can quickly retrace your steps and redirect it to the path that leads to business success.

Inability to satisfy your customers is our number three reason for business failure. Someone says that when you fail your client, you fail in business. The essence of your business is to meet the needs of your clients. Every entrepreneur wants to succeed and make profits but this should not be to the detriment of your clients. Whether you sell physical products or render services, customers’ satisfaction should be your goal. Customer satisfaction will either kill or promote your business. When you satisfy your customers, they will like to come back again and again. But when a customer is dissatisfied, he will not come back. Such customer will even go out of his ways to tell others and try to convince them why they must not do business with you.

It doesn’t matter if you enjoy monopoly in the area of services or products you sell, you still owe it a duty to satisfy your customers. The monopoly you enjoy today can never be forever. Immediately you have a competition, it is then you will realise the importance of customers’ satisfaction.

For example, there used to be a petrol filling station in a particular locality. This petrol filling station happened to be the only one in that environment. The owner thought that it was an opportunity for him to extort his customers and he actually did. The metre was manipulated, customers might even be asked to pay a token before they can have petrol sold for them in cans. This continued for some time until all of a sudden, a new filling station was established nearby. The rest is a story! People deserted the former petrol filling station to the point that at times, you could mistakenly think they were not having fuel. He went as far as attending local meetings to plead and convince people of better services, but all these fell into dead ears. The irony is that people were even ready to pay additional money as transport fare to get to the new petrol filling station.

Therefore, if you are not satisfying your customers, it is as good as saying that you are already digging a grave for your own business. Don’t cheat your customers. Customers will always remain kings and it is better you see them in that light. If you have not, you can quickly turn over a new leaf before it is too late. Having taken a bold step in starting your business, I have confidence in you that you have all what it takes to succeed in that business and you will surely succeed! Your business will not be named among failed businesses! See you at the top!

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Understanding Withholding Tax in Nigeria

2012-10-16T08:00:00.000+01:00

Following the misunderstanding of meaning and operation of Withholding Tax by some of our clients, we have decided to publish the Information Circular from The Federal Inland Revenue Service as explanatory comments on Withholding Tax Principle and Operations below on our blog for our readers' digest.

1.0 Introduction

Withholding Tax is an advance payment of income tax. In principle, WHT is a payment on account of the ultimate income tax liability of the taxpayer or company. Withholding tax is not a separate tax on its own and does not confer an exemption from the filing of annual tax returns by the company which had suffered WHT. The tax is normally to be deducted at source when a payment is to be made to the beneficiary.

2.0 Tax Coverage

The withholding tax (WHT) provision was introduced into the tax system in 1977 with limited coverage to rent, dividends and directors fees. Tax deduction at source has since been expanded to include:

- All aspect of building, construction and related services.

- All types of contract and agency arrangement, other than outright sale and purchase of goods and property in the ordinary course of business.

- Consultancy, Technical and Professional services

- Management services

- Commissions

- Interest and Royalty

The rates of tax applicable to the various sources is provided in paragraph 6 of this Information Circular. The introduction of the WHT regime came about in order to address the problem of tax evasion although, there is the overriding objective of full disclosure, transparency, predictability and fairness. In the light of these objectives and bearing in mind that the tax is intended as an advance payment of tax, its operation should always be optimized to ensure that taxpayers are not overtaxed and Government does not lose revenue.

3.0 Income subject to Withholding Tax

The WHT provisions seek to collect taxes that may otherwise have been lost through evasion and/or avoidance. The aim is to ensure that taxpayers’ are correctly taxed but it must be understood that transactions that are ordinarily not liable to tax in Nigeria are also not liable to WHT; thus, contracts and supplies of goods and services performed entirely outside Nigeria by non-resident taxpayers will not be liable to WHT. The residence of the taxpayer is generally not relevant for the purpose of determining liability to tax or the application of WHT, but it is important to consider whether the provider/supplier of the goods or services is liable to Nigerian tax. The incomes that are liable to WHT are discussed hereunder.

3.1 Rents:

This includes rental income on both real and personal property. As a general rule, income on a property (rent, hire or lease payments or rights (royalties) situated in Nigeria is liable to tax in Nigeria, the place of payment not withstanding. Where a person rents or hires property/services from another, WHT at the rate of 10% will apply. But where a person provides services to another for e.g. air/land transport service, using its own equipment/facilities, the transaction becomes a contract of services rather than rental or hire.

3.2 Interest:

This is income from investments of every kind. WHT is applicable to income from government securities and income from bonds or Treasury bills. Interest on loans paid by a Nigerian company is often not subject to WHT.

3.3 Dividends:

Refer to income from shares. The income is subject to tax whether it is received by a Nigeria company or a non-resident company. The tax imposed is regarded as final tax, but corporate bodies are allowed to recoup WHT deduction where the dividend is to be redistributed as Franked Investment Income (FII). The Petroleum Profit Tax Act (PPTA) however exempts dividends payable by oil producing companies on petroleum operations from WHT imposition.

3.4 Royalty:

Refers to unearned income which accrues to the owner from past endeavors. Permission must be obtained before it can be used. It is payment of any kind as a consideration for the use of or the right to use any patent, trade mark or right/

3.5 Consultancy/Professional/Management/Technical Services

These are specialized services rendered by persons with the required knowledge and skills. The mere fact that services are provided by a company which has consultancy as part of its name does not by itself render such service as consultancy. The real content of the services being provided must be examined and if it amounts to a consultancy service, then the appropriate rate would apply; the same treatment applies to Professional/Management services. For instance, if an engineering company is carrying out a construction activity, the proper classification for the services would be ‘‘construction’’ as opposed to Professional/Technical services; similarly, the use of industrial machinery/equipment to provide a service does not render it to be ‘‘Technical’’ because the industry position requires that only arrangements that involve a transfer of Technology should be classified as technical.

3.6 All aspects of Building, Construction and Related Activities

Under this heading are all types of construction contracts, including laying of pipelines, maintenance activities and service charges. Drilling and related activities properly fall under this classification.

3.7 All types of Contract Activities and Arrangements, other than Outright sale and Purchase of Goods and Property

This classification is wide enough to capture every transaction, other than outright purchase/sale of goods and property. The Revenue holds the view that majority of the activities carried on in the oil industry are done by way of contractions, and should properly fall under this category. The issue of contracts and transactions, not being conducted in the ordinary course of business has over the years been subjected to series of reviews and amendments, aimed at improving the WHT system in order to achieve efficiency as well as minimize the cost of doing business. The aim of withholding tax is not to compound the problems of producers, manufacturers and those engaged in any forms of activities, other than services. The definition of manufacturing activate as contained in the FIRS information circular No. 2002 appears to have further generated more controversy than expected. The following classification will assist in the understanding of circumstances where WHT will apply in relation to any production activity.

3.7.1 Where there is a dual relationship between parties in a business transition

An example of this contract is where a manufacturer/ producer require raw materials from supplier for its production. This is dual relationship between both parties and the transaction will not be liable to WHT.

Examples

· A farmer supplies groundnut to a manufacturer of groundnut oil.

· A manufacturer of glass supplies bottles to a bottling company or soft drink manufacturer.

· An oil marking company supplies diesel direct to a user.

3.7.2 Where there is a tripartite relationship between parties in a transaction.

In a tripartite contract relationship involving a manufacturer, supplier and agent, there could be either two options, depending on the level of financial arrangement. For example, where Manufacturer A, engages Agent C to procure or source for raw materials from Supplier, B, for his production line, there is a tripartite arrangement here. There is nothing preventing Manufacturer, A from dealing directly with supplier B in order to achieve a dual contract relationship.

(a) If Agent C is mobilized by Manufacturer, B with fund to source for materials for its operation, there will be need to segregate the service cost from the entire contraction, and only the service component will be liable to WHT.

(b) If the Agent, C, entirely finances the sourcing of the raw materials for Manufacturer A, the entire contract value will be liable to WHT at the time of payment.

3.8 Where a manufacturer delivers its normal products to its distributors and dealers for Sale

In this situation, the income accruing to the manufacturer will not be liable to Withholding tax (WHT) as it is regarded as transaction in the ordinary course of business, but the Commission earned by the distributors/Dealers will be subjected to WHT.

3.9 Agency Transactions & Arrangements

Agency arrangement implies a contract between a principal and agent. The reward payable for services rendered by the agent is Commission, which is subject to WHT of 10%. However, if the principal is a non-resident, any sales proceeds from the arrangement will attract5% WHT, where any of the conditions in Section 26(1) (b) of CITA holds.

4.0 Withholding Tax Implication on Foreign Transactions

4.1 Non Resident Companies/Enterprises

The Revenue practice is that non-resident companies are not empowered to deduct any type of WHT. These categories of enterprises are practically outside the regulatory monitoring and control of the FIRS. It will be impracticable for Revenue office to inspect the accounting books of these companies in order to confirm due deduction and remittance of WHT.

4.2 Double Taxation Agreement (DTA)

Transactions that are ordinarily not liable to tax in Nigeria are not liable to WHT in Nigeria. Thus contracts and supplies of goods and services performed entirely outside Nigeria by non-resident individuals are not liable to WHT. Nigeria has treaty agreements with about eight (8) countries and these countries are granted a reduced rate of WHT deduction, usually at 75% of the generally applicable WHT rate. 7.5%. These countries include UK, Northern Ireland, Canada, France, Belgium, the Netherlands, Pakistan, and Romania.

4.3 Permanent Establishment Principle Exists Under Nigeria Taxation

The rules construe a PE where:

- the company has a ‘‘fixed base’’ in Nigeria.

- The company operate in Nigeria through a dependent agent authorized to conclude contracts or deliver goods on its behalf,

- The company is executing a turnkey project in Nigeria, or

- The operation between the company and its Nigeria affiliate does not appear to be at arms length.

- ‘‘Fixed base’’ implies some degree of permanence and will include:

- Facilities, such as a factory, office, branch, mine, oil or gas well

- Activities, such as building, construction, assembly or installation

- Provision of services in connection with the activities listed above.

Nigeria tax laws do not exempt the income of branch from tax. A branch is seen as a permanent establishment and its income is taxable in Nigeria. It therefore has WHT obligations.

4.4 Companies Operating within the Free Trade Zones/EPZ

These companies are granted exemption from the payment of Nigerian taxes by virtue of their status as operating outside the country. Even where they make purchases outside the Free Trade Zones such companies that they deal with are presumed to be resident within the Nigeria Customs Territory and such transaction are also not liable to Nigerian taxes.

5.0 Other Types of Income Not Liable to WHT

Insurance premium

From practice, there are some incomes which do not attract WHT, by virtue of their nature.These incomes include:

Insurance Premium received by Insurers or Stock brokers will not be liable to WHT, although the Commission earned by Insurance brokers is liable to WHT.

Turnover/Income from Dealership or Distributive trade

The income earned by distributors or dealers from their trading activities is regarded as arising from transactions in the ordinary course of business and such income is not liable to WHT, but the Commission paid to them by the companies they represent will be liable to WHT.

Telephone Bills are not subject to WHT

Rates of WHT

The applicable rates of WHT are as follows:

Types of payment Applicable rates for

Companies Individual

Dividends, Interest, Rent 10% 10%

Directors Fees 10% 10%

Royalties 15% 15%

Commission, Consultation,

Technical, Service Fees 10% 5%

Management fees 10% 5%

Construction/Building Contracts 5% 5%

Contracts, other than outright sales

and purchase of goods in the

ordinary course of business 5% 5%

1.0 Conclusions

The WHT system has come to since it is a veritable source of revenue to Government. It enhances the collection efforts of Tax Authorities and it ensures that revenue is generated in advance. It is therefore imperative that the system should continue to be improved upon in the light of modern tax administration procedure. Usually an advance payment of tax provides information that an income source has been identified through a third party. Such information being provided by the payer should be readily available for use in accessing a potential taxpayer. Field officers should always be ready to follow up on such information.

For consultation: visit www.otnconsultinglimited.com or call 08024768668

YouWin: Unique Opportunity for Women in Nigeria

2012-10-14T17:31:00.000+01:00

Are you aware of YouWin? Do you know what it means? Well, YouWiN Programme is a collaboration of the Ministry of Finance, the Ministry of Communication Technology (CT), the Ministry of Youth Development and the Ministry of Women Affairs and Social Development that will launch an annual Business Plan Competition (BPC) for aspiring young entrepreneurs in Nigeria, in line with the Federal Government’s drive to create more jobs for Nigerians. The programme will be implemented in partnership with Nigeria’s private sector, who will be requested to provide funding support.

As part of the objectives of YouWin, Federal Government of Nigeria wants to generate 80,000 to 110,000 new jobs for currently unemployed Nigerian youth over the three years during which the three cycles will be implemented.

If you apply and your application is successful, YouWiN will support your business with an equity contribution which is not a loan but a grant.

ELIGIBILITY

To be eligible for the Business Plan Competition you must satisfy the following criteria:

You must be a proven citizen of Nigeria and a woman no older than 45 years (proof of identity: International passport/Drivers License/National ID/Voters card required)
You must have a post-secondary school qualification
Your proposed business venture must be within the national borders of Nigeria, and with the intention of employing Nigerian citizens.
Your proposed venture must not entail the production or distribution of weapons, alcoholic beverages, tobacco or/and gambling, or any activities in contradiction with the Nigerian constitution
You must prepare an innovative business concept summary

Click Here to register

Why Some Businesses fail (Part 2)

2012-10-12T09:00:00.000+01:00

I mentioned in the first part of this series that the lack of capital is not essentially the reason for some business failures. The truth is that you will always need capital no matter the size of your organization. The need for the capital may differ from one organization to the other. While some need capital to start up their businesses, some are already established and are planning for expansion. So, capital will always be needed. It is a general phenomenon. Despite the need of capital, some companies still succeed. Therefore, lack of capital is not enough reason for business failure. That is not to say that it doesn’t contribute to business failure at all. The point we are considering today is the mismanagement of capital (funds)

Funds Mismanagement

Whether you are just starting up or you are established, there is nothing devastating like the mismanagement of funds. Everybody has certain amount of funds which in most cases may not be sufficient for all the needs of the organization. If it seems sufficient, it means you have not considered all channels through which you can apply the funds.

Since the need for capital differs as I mentioned, I will try to relate this topic to some practical instances which apply generally to businesses.

Funds Mismatch: It is expected of any company to finance its long assets with long term funds. That is, when you are acquiring assets or property that is not easily liquidated or that will be used for a long time and might not bring immediate benefits in term of cash flows back to the company, such assets should be financed with capital that can be used for a long time without any pressure of immediate repayment. Such capital includes owner equity, long term loan or undistributed profits which are not required as working capital.

Misplaced Priority: A good entrepreneur should be able to arrange his business needs in the scale of preference. For example, as a start up company that is yet to have good clientele base, money has to be set aside for marketing and other expenses which are needed to keep the company running pending the time you start generating enough revenue. It will be wrong for such person to spend all his money on acquisition of assets such as expensive vehicles, furniture thereby leaving little or no funds for office running. It makes business sense to postpone certain expenditure when your company cannot yet afford it.

You can use the little resources you have to make the difference. Some successful entrepreneurs we celebrate today started their businesses under their own roof. Everybody desires to start big but when the resources are not enough, you have got to learn to make best use of what you have. By this, you will discover that even when your company grows bigger, fund management will have become part of essential skills that are needed to run business profitably. There is beauty in starting small; when you make mistakes, the impact on the business will be less. And you can quickly correct it and equally learn from it. Imagine who started big probably with borrowed funds and such person commits mistake which impairs the continuity of the business. Where will he start from? How many people will have confidence in him if he approaches them for funds? What of the emotional pain and the fear of failure? My message today is; learn how to make best use of the resources you have!

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Why Some Businesses Fail (Part I)

2012-10-11T17:49:00.001+01:00

No one ever plans to fail in any endeavour. When you are going into a business, you will never wish yourself failure. In fact, all your loved ones will wish you success. But with all these wishes, a lot of businesses still fail. The rate of business failure can be drastically reduced if adequate attention is paid to knowing the reasons businesses fail. It is when you are able to address the question ‘why’ that you can know ‘how’ to prevent your business from failing. In these series, we shall be addressing the reasons for business failure one after the other. Kindly note that these reasons are not, in any way, addressed in the order of their impact on businesses.

Reason one: Lack of adequate planning

There is a saying that he who fails to plan has already planned to fail. Failure to plan is a sure way to failure. Skills, expertise or years of experience can never be a substitute for planning. Many people believe that capital is their problem but this is not always the case. Give such people capital, within few months or years, their businesses will crumble. Sourcing for capital is one thing; the right application of such is a different thing entirely.

Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

Your plan should include among others the following:

The description of your business, vision, mission, goals and objectives.
Critical success factors. For example, the choice of location may be critical to your company. No matter your level of investment, if you choose a wrong location for a business that requires a particular type of location, the investment will go down the drain.
Requirements such as capital, work force, assets, regulatory laws etc.
Likely problems and possible solutions. A lot of entrepreneurs miss it in this area. They never envisage any problem. They believe that everything will just go on smoothly. So, at any slight problem or challenge, they are not able to handle it.
Analysis of competition. There are other people that are doing or will do what you are doing. How do you want to distinguish your products or services? What will make people to prefer you to competitors?
Marketing and promotional activities

This is just to provide a guide on what planning entails. Your planning should not be restricted to the points mentioned above. The best way to ensure adequate planning is to come up with your business plan. Some people mistakenly believe that business plan is just a mere document but statistics shows that greater percent of businesses that succeed have their well prepared business plan. So, planning is very crucial. If you need to plan before embarking on a trip, how much more when you are going into a business?

Therefore, the message is plan, plan and plan!

For consultation: visit www.otnconsultinglimited.com or call 08024768668

How to Increase Your Profit

2012-09-25T11:32:00.000+01:00

Everyone is involved in one activity or the other in the name of doing business. Ironically, it is not everyone that can be described as doing business as some of the activities do not lead to productivity. In other word, activity is not synonymous to productivity. The same way one can be moving without motion (moving forward), one can be engrossed in activities and doesn’t have anything to show for it at the end of the day. Whatever type of business you are doing, if you are not making profits, it is just a matter of time that the business will close down. Making profits is one of the main objectives of going into a business. If that is not your focus, probably you are into a charitable or non profit organisation. Making profits is not difficult if only you can focus on the elements of profit equation.

What is profit equation? In accounting sense, profit equation can be expressed using the formula below:

P = R – C

Where; P = Profit, R = Revenue and C = Costs.

Graphically, it can be expressed as follows:

It looks simple! But that is just the reality of any business. Profit is the gap between Revenue and Costs. The wider the gap; the higher your profits. As an entrepreneur, you have the responsibility of ensuring that the elements of the profit equation work to your advantage. Let’s consider each element one after the other.

Revenue

This is essentially your gross income. It is the amount you earn from selling your products or services to your customers. How can you increase your revenue? Revenue is a function of two variables namely price and volume. You either increase your price so that you earn more but this might not be possible in some instances. For example, if you sell a product that has a standard price in a perfect market, it becomes almost impossible to increase your price; otherwise customers will run away from you. But if you provide a unique service or you can differentiate your product from competitors, then you can have influence on price to a certain degree.

Also, another way of increasing your revenue is to increase the volume of your sales. This might mean selling more to the existing customers or by reaching out to new customers so as to have larger market share.

Costs

Costs include the amount you incurred in bringing the products or services you sell to a sell-able state; a state where your customers are convinced that the products or services can actually deliver the desired value. Of course, you should not forget other incidental costs. Therefore, to increase your profits, you can embark on cost reduction or control strategies (For cost control programme, you can contact us. We shall understudy your situation and recommend workable and sustainable strategies to you).

If you succeed in either increasing your revenue or drive down your costs or both, your profitability will automatically increase. People wonder why they are not making profits. The reason is simple, it is because they didn’t pay attention to the elements of profit equation. Profit will always respond to this equation. Instead of focusing too much attention on the profit, focus on the elements of the profit equation, you will see your profit level responding accordingly.

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Can a company be made to pay tax when it doesn't have assessable profits?

2012-08-31T22:17:00.004+01:00

At times, we, the tax practitioners face a lot of “hard to tackle” questions from our clients. One of such is the question above. Ordinarily, to a layman, a company should only pay tax in the year it makes profits but this is not always the case. There is what is called ‘Minimum Tax’. The law expects that any company that has benefited from the infrastructure provided by the government in a given year should be able to contribute at least a certain amount to the development of the nation by way of paying the minimum tax. (Whether the infrastructure is actually available is a different issue). Below is the provision of the law regarding the payment of minimum tax:

Payment of minimum tax

(1) Notwithstanding any other provisions in this Act where in any year of assessment the ascertainment of total assessable profits from all sources of a company results in a loss, or where a company's ascertained total profits results in no tax payable or tax payable which is less than the minimum tax, there shall be levied and paid by the company the minimum tax as prescribed by subsection (2) of this section.

(2) For the purposes of subsection (1) of this section the minimum tax to be levied and paid shall‐

(a) if the turnover of the company is N500,000 or below and the company has been in business for at least four calendar years be‐

(i) 0.5 per cent of gross profit; or

(ii) 0.5 per cent of net assets; or

(iii) 0.25 per cent of paid‐up capital; or

(iv) 0.25 per cent of turnover of the company for the year, whichever is higher; or

(b) if the turnover is higher than N500,000, be whatever is payable in paragraph (a) of this subsection plus such additional tax on the amount by which the turn‐over is in excess of N500,000 at a rate which shall be 50 per cent of the rate used in paragraph (a) (iv) of this subsection.

(3) The provisions of this section shall not apply to‐

(a) a company carrying on agricultural trade or business as defined in subsection (9) of section 11 of this Act.

(b) a company with at least 25 per cent imported equity capital; and

(4) (a) Nothing in this section shall exempt any company from payment of any levy or tax imposed on the total profits of the company under section 40 of this Act so however that the tax payable under subsection (1) of this section, shall be the amount by which the amount computed under subsection (2) thereof exceeds the amount that is levied and payable under section 40 of this Act;

(b) For the purposes of this section and the Second Schedule to this Act, the capital allowance for any assessment year in which a minimum tax is payable, shall be computed and the amount so computed, together with any unabsorbed allowances brought forward from previous years, shall be deducted as far as possible from the assessable profits of the assessment year and, so far as it cannot be completely deducted, the amount by which the total amount of the capital allowance exceeds the amount of the assessable profit of the assessment year, shall be carried forward to the next assessment year.

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Value Added Tax (VAT) in Nigeria: Things to Know

2012-08-28T22:34:00.009+01:00

VAT is a consumption tax which is to be levied on all goods and services, other than those exempted under the VAT Act. It is collected at each stage of the production and distribution process by authorised persons. It is eventually borne by the final consumer, (however sometimes multiple layers do bear part of the burden e.g. VAT on tax on services and fixed assets). Standard rate of tax is 5% of invoice value of goods and services. VAT commenced in Nigeria effectively 1 January 1994. It is administered by the Federal Inland Revenue Service (FIRS)

Input VAT

This is VAT that is chargeable on purchases

Elements of Input VAT:

This is VAT on goods purchased or imported directly for resale.

Also includes goods that form stock-in-trade used for direct production of any new product.

Input VAT is not reclaimable on fixed assets, overheads, services and general administration expenses. VAT on fixed assets is capitalised as part of the cost of the asset while VAT on overheads etc are expensed through the income statement.

Goods Exempted from VAT

1. All medical and pharmaceutical products

2. Basic foods items

3. Books and educational materials

4. Baby products

5. Plan, machinery and goods imported for use in the export processing zone or free trade zone. Provided that production of such company is for export otherwise tax shall accrue proportionally on the profits of the company

6. All exports

7. Plant, machinery and equipment purchased for utilisation of gas in downstream petroleum operations

8. Tractors, ploughs, agricultural equipment and implements purchased for agricultural purposes

Services Exempted from VAT

1. Medical services

2. Services rendered by Community Banks, People Banks and Mortgage institutions

3. Plays and performances conducted by educational institutions as part of learning

4. All exported services

Zero-rated Supplies

1. Non-oil exports

2. Goods and services purchased by diplomats

3. Goods purchased for use in humanitarian donor-funded projects

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Why You Must Outsource Your Accounting Functions

2012-08-08T09:06:00.005+01:00

For some organizations, turning over vital business functions, such as accounting to a third party can be daunting. Business owners need to be well informed about outsourcing arrangements and processes in order to truly recognise the value and benefits of outsourcing.

Below are some of the benefits which can be derived from accounting outsourcing:

Outsourcing can provide access to highly talented professionals with various levels of accounting and non-profit expertise to perform your non-core accounting services, expertise which is normally too expensive to hire staff for.

You can buy professional services/expertise only for the amount of time needed by your organization. This means even a small organization can have multi-levels of accounting staff available to them at any time.

With proper month-end closing procedures and quality control placed on outsourced services, you will receive reliable accurate financial reports in a timely manner and make informed management decisions.

Outsourcing can help strengthen your organization’s internal controls, increase transparency and accountability in financial operations. Segregation of accounting duties can easily be achieved with the combination of your staff and outsourcing team members.

Your outsourcing team can assist with maintaining your organization in compliance with laws and regulations such as tax laws, provisions of Companies and Allied Matters Act etc.

Outsourcing will result in recommendations and implementations of financial process re-engineering incorporating best practices to improve efficiency and effectiveness of your accounting/reporting functions.

Use of outsourcing firm’s technology, accounting systems, and hardware can result in cost savings for your organization, minimizing your staff time spent on purchase, implementation and maintenance of such systems.

Outsourcing will eliminate issues with staff turnover, management’s time and effort spent on hiring, training and managing employees. And it minimizes risks and costs associated with potential employment related litigations.

For annual audit of financial statements, outsourcing is an excellent way to obtain support for the preparation of the audit. Effective outsourcing teams will save their clients audit fees by being fully ready for the audit, responsive to auditors needs and effectively managing the audit process.

Outsourcing can be extremely flexible to meet your organization’s specific needs. You can outsource the entire accounting function or only certain positions or tasks. Outsourcing can be performed on-site, or off-site, which can result in cost savings for office space, equipment, furniture and overhead expenses.

Outsourcing provides built-in scalability. As your organization grows or shrinks, you can easily have your outsourced accounting service provider adjust the staffing needs and deal with resource management.

Outsourcing provides cost savings to many organizations, including salaries, benefits, office space, technology costs and overhead. There are intangible benefits as well including reliable and timely financial reports, eliminated frustrations related to staff turnover, recruiting, performance management, and saving management’s valuable time.

Conclusion

Outsourcing your accounting needs to our firm allows you to achieve cost savings through reduced need for internal bookkeeping staff, helps you to make informed business decisions and gives you time to focus on your core business.

For consultation: visit www.otnconsultinglimited.com or call 08024768668

Importance of Bookkeeping

2012-08-07T16:18:00.002+01:00

It is surprising that some people run their business without keeping proper accounting records of their transactions. Why on earth would a businessman operate its business off record? Some who claim to have a record for their business activities only have their bank statements to show for it. Bank statements can never be a replacement for accounting records. It is just one of the sources of information for the preparation of the accounts. While your bank statement will only show you the balance you have in your bank account at a point in time, it will not show you how much you have in hand, the amount you are owing your suppliers, the amount your debtors owe, the bills that are due for payments, neither would you be able to ascertain whether you are making profit or loss.

The importance of keeping accounting records cannot be over-emphasized. Whether you are just a start up or a growing business, you need to know the financial position of your business at any given point. As a start up company, it is always easier to set up your accounting system at the initial stage before everything is muddled up. Those people who accumulate transactions before realizing the needs to have proper accounting records do not only get things complicated, they pay more at the end of the day when compared with what they would have paid initially because it takes an experienced accountant to prepare accounts from incomplete records. Record keeping is a vital part of your business and you need to recognize that as early as possible. The same way you see sales as vital to the survival of your business, so also is the record keeping. What is the link you may ask? From where I started in the early paragraph, you can see some benefits, which are hidden in record keeping. As you will agree with me that it is not enough for a company to make sales, it should be able to turn its sales into profits. If a company is trading and making losses consecutively, it is just a matter of time that the whole business will fold up. How can a business ascertain whether it is making profit or not if there is no records to substantiate this? How can the growth of business be reliably measured without records?

The mistake some so-called entrepreneurs are making is that they see few bucks they will spend on maintaining proper accounting records as a waste of money. They see it as avoidable costs, which they can easily do away with, but in the real sense, they cannot avoid the costs perpetually. Some recognize this early while some do not. The truth of the matter is that the benefits out-weigh the costs. It is possible you have not yet seen any need to keep good records of your business transactions; I will enumerate few here.

Financial Position.

You will know the financial position of your business at a given time. Financial position is not limited to your cash and bank balances. You will be able to know at a glance your financial commitments. This includes payments due to suppliers and other expenses such as utility bills that need to be settled. You will equally know how much your customers are owing you. Most especially, if you use accounting package, you can easily generate different reports on your customers such as top customers, the aging of the receivables, and the over-due debts.

Performance Measurement

You can measure the performance of the company. The primary objective of a business is to make profits. When your account record is intact and up to date, you can easily ascertain whether you are making profit or not. You can also determine the customer or a product that is not profitable. This will help you focus more on the profitable ones.

Growth

Growth rate of the business can be measured. Data will be available to compare the performance of the past years. The growth trend of the business can be predicted based on the past performances. Some products are seasonal in nature. With the information of the growth trend at your fingertips, you can plan successfully for the low sales and peak periods.

Access to finance

Ability to provide financial statements of your company increases your chance of getting finance to grow your business. It is part of the requirements you must meet if you want to access credit facility from a bank. Also, before any investor can have confidence in your business, he will like to see your company’s past performances.

Determination of tax liability

Payment of taxes is your responsibility to the governments. Tax payable is computed based on profits your company makes having adjusted for some allowable and disallowable expenses. The actual amount payable can only be ascertained when there are records about the financial operations of the business. When this is not in place, assessment of tax payable is based on ‘best of judgement’, which is just an estimated figure of tax payable. In most cases, any company that is assessed based on ‘best of judgement’ usually pays much more than it would have paid if only the tax had been calculated based on the actual performance of the company.

In conclusion, keeping good records of transactions about your business helps in planning, evaluation and decision-making.

For consultation: visit www.otnconsultinglimited.com or call 08024768668