If you are running your own home based business and it is getting fairly successful, this is great but it is important for you to remember that you are liable to follow the law and the law of your country will give you a certain earning threshold after which you will be liable to pay taxes. In addition to this, you are also bound to have proper accounts that you will have to show if the government asks for it. The government usually keeps track of companies online and through transactions made at the bank and may suddenly pay you a surprise visit to ask for your accounts and not having proper accounts could get you in to trouble unless you can prove that you are well below the threshold.
Hiring a professional to help you
If you feel that your business is growing and that you can only expect more growth, it might be a good idea for you to consider hiring a Xero bookkeepers to help you to keep your books in order and to have proper accounts. Fortunately, you do not have to hire someone to work for you full time as there are companies that will simply do your accounts for a small amount of money from their own offices. This is due to the ease of communication and the ability send documents over the internet.
When selecting an accounting services company, you will need to do some research to find out if they are a reputed company and if their work is extremely good. If they have gotten good reviews by companies that they have worked for before, you might not have anything to worry about. Alternatively, if you do not want to spend any money on hiring someone externally, you can choose to learn the subject and do it yourself.
It is not the most difficult thing in the world because all it requires is that you keep track of your daily expenditure and your daily earning and track it on an excel sheet. You can also do some research to find out what the legal tax threshold is in your country and be aware about the amount of income you have every month as profit so that you know you are not past that threshold. If you were to pass the threshold and you still have not paid any taxes, this can potentially get you in to a lot of trouble. As much as it is an easy job to take care of your accounts, it is also a lot of responsibility.