12-16-2025, 12:47 PM
If you run a shop, boutique, supermarket, POS stand, cosmetics store, phone shop, provision business, or any small retail business, read this carefully. It concerns your money, your business, and your future.
Many traders focus only on selling and collecting cash. As long as people are buying, they think everything is fine. But times have changed. How you structure your business today will determine whether you remain safe or face trouble with government authorities tomorrow.
Thousands of traders unknowingly put themselves at financial risk—not because they are doing anything illegal, but because their businesses have no proper structure.
Common mistakes:
Money comes in
Money goes out
No record
No receipt
No clear account
This is what destroys many small businesses.
Government does not need to visit your shop before asking questions. Once they notice heavy cash flow without explanation, they can contact your bank. If your bank cannot defend your inflows, problems begin. This is why many traders receive unexpected tax bills or account restrictions.
Here is how to protect yourself.
[b]1. Register Your Business Name[/b]
You do not need to start big. Even a small shop can have a registered business name.
Benefits of registration:
Gives credibility to your business
Protects you from unnecessary tax issues
Separates your personal finances from business finances
Helps you open a proper business bank account
[b]2. Use Two Separate Bank Accounts[/b]
Mixing personal and business money is a common mistake.
Set up two accounts:
Account 1: Business Income Account
All customer payments, POS settlements, and supplier payments go here first.
Account 2: Business Expense Account
Transfer funds from Account 1 to Account 2 for expenses like buying goods, paying rent, staff salaries, fuel, or transport.
Spend only from this account for business purposes.
This simple system gives you a clear view of your money flow.
[b]3. Understand Your Allowable Expenses[/b]
Many traders do not realize that business costs reduce taxable profit. Proper expense tracking helps you pay less tax legally.
Examples of allowable expenses:
Goods purchased for resale
Transport and delivery charges
Shop rent
Staff salaries
Electricity and generator fuel
POS charges
Repairs and maintenance
Packaging and market union dues
Business tools and equipment
Data and phone calls used for business
Example:
If your sales are ₦900,000 in a month and your expenses are ₦650,000, your real profit is ₦250,000—not ₦900,000.
Government wants clean records, not confusion.
[b]4. Pay Yourself a Salary[/b]
Your business money is not your personal money. Your personal money is not your business money.
Mixing the two creates confusion, which can lead to trouble.
Pay yourself a fixed monthly salary from the business
Use that salary for personal expenses
Let the rest of the business money remain in the business
[b]5. Keep Receipts and Record Everything[/b]
A business without records is like a driver without a steering wheel.
Record daily sales and purchases
Keep receipts for all transactions
Track inflows and outflows
File annual returns if your business is registered
Small habits like this can save you from major problems.
[b]6. Don’t Fear Tax—Fear Ignorance[/b]
Most traders who are heavily taxed get into trouble because they cannot prove their expenses.
Government calculates tax based on inflows if expenses are unrecorded
A structured trader can show real costs and legally pay less tax
[b]Final Advice for Traders[/b]
To grow your business without stress:
Register your business name
Use separate bank accounts for income and expenses
Track all sales and expenses
Keep receipts for every transaction
Organize your books
Stop mixing personal and business money
2026 will challenge many unprepared traders. But those who structure their business now will enjoy peace, stability, and confidence.
Your shop deserves structure.
Your hustle deserves protection.
Your future deserves clarity.
Many traders focus only on selling and collecting cash. As long as people are buying, they think everything is fine. But times have changed. How you structure your business today will determine whether you remain safe or face trouble with government authorities tomorrow.
Thousands of traders unknowingly put themselves at financial risk—not because they are doing anything illegal, but because their businesses have no proper structure.
Common mistakes:
Money comes in
Money goes out
No record
No receipt
No clear account
This is what destroys many small businesses.
Government does not need to visit your shop before asking questions. Once they notice heavy cash flow without explanation, they can contact your bank. If your bank cannot defend your inflows, problems begin. This is why many traders receive unexpected tax bills or account restrictions.
Here is how to protect yourself.
[b]1. Register Your Business Name[/b]
You do not need to start big. Even a small shop can have a registered business name.
Benefits of registration:
Gives credibility to your business
Protects you from unnecessary tax issues
Separates your personal finances from business finances
Helps you open a proper business bank account
[b]2. Use Two Separate Bank Accounts[/b]
Mixing personal and business money is a common mistake.
Set up two accounts:
Account 1: Business Income Account
All customer payments, POS settlements, and supplier payments go here first.
Account 2: Business Expense Account
Transfer funds from Account 1 to Account 2 for expenses like buying goods, paying rent, staff salaries, fuel, or transport.
Spend only from this account for business purposes.
This simple system gives you a clear view of your money flow.
[b]3. Understand Your Allowable Expenses[/b]
Many traders do not realize that business costs reduce taxable profit. Proper expense tracking helps you pay less tax legally.
Examples of allowable expenses:
Goods purchased for resale
Transport and delivery charges
Shop rent
Staff salaries
Electricity and generator fuel
POS charges
Repairs and maintenance
Packaging and market union dues
Business tools and equipment
Data and phone calls used for business
Example:
If your sales are ₦900,000 in a month and your expenses are ₦650,000, your real profit is ₦250,000—not ₦900,000.
Government wants clean records, not confusion.
[b]4. Pay Yourself a Salary[/b]
Your business money is not your personal money. Your personal money is not your business money.
Mixing the two creates confusion, which can lead to trouble.
Pay yourself a fixed monthly salary from the business
Use that salary for personal expenses
Let the rest of the business money remain in the business
[b]5. Keep Receipts and Record Everything[/b]
A business without records is like a driver without a steering wheel.
Record daily sales and purchases
Keep receipts for all transactions
Track inflows and outflows
File annual returns if your business is registered
Small habits like this can save you from major problems.
[b]6. Don’t Fear Tax—Fear Ignorance[/b]
Most traders who are heavily taxed get into trouble because they cannot prove their expenses.
Government calculates tax based on inflows if expenses are unrecorded
A structured trader can show real costs and legally pay less tax
[b]Final Advice for Traders[/b]
To grow your business without stress:
Register your business name
Use separate bank accounts for income and expenses
Track all sales and expenses
Keep receipts for every transaction
Organize your books
Stop mixing personal and business money
2026 will challenge many unprepared traders. But those who structure their business now will enjoy peace, stability, and confidence.
Your shop deserves structure.
Your hustle deserves protection.
Your future deserves clarity.