Quote from: Fortify on June 05, 2023, 06:34:27 PM

It seems a bit weird that you had to educate this person on financial records, when it is pretty much demanded by the tax authorities in every country to have proper accounting. Otherwise you end up in a grey area which can easily be misconstrued as you trying to avoid taxes or even worse - money laundering offenses. If this person had been around for at least a couple years they should have been paying taxes and to do that, you need to know your incomings and outgoings. With that in mind, some people pay accountants to deal with the nitty gritty details, especially if they're in fields where they make a lot of money or once the company starts to expand but it is necessary to know these basics things to determine if you're making any sort of profit.

In some countries there are no proper taxation systems. Most citizens of developing nations don't pay tax. Even if they pay it is not properly calculated and corrupt tax officials also use tax collection as opportunities to steal. Like in my country only civil servants and registered businesses are require to file tax statement. So most businesses don't keep records and these businesses don't know their financial standings.

Quote from: og kush420 on June 05, 2023, 08:33:26 PM

some people just earn the money and do not keep the record this damages their business and doesnt know how to deal with finances

Illiteracy is another reason why people don't keep records. Some people don't know how to read and write, so it affects their ability to keep records. But one of the solution is to employ a financial records personnel. But small businesses might not be financially strong enough to employ workers. But every business owner should be a prudent spender. You should be able to know your income so that it will determine your expenses.