Archives August 2021

Why You Should Hire A Virtual Accountant

A Virtual Accountant is a professionally qualified accountant that can handle all your accountancy including tax services, virtually, online.

Starting and operating a small business takes time and focus. You want to concentrate your energy on developing a strong brand and increasing your market share. While you need accurate financial and accounting information to run your business efficiently, you don’t need the distractions of “keeping the books” in-house. That’s where virtual accounting services come in. 

Apparently, entrepreneurs are very busy as they have to look after many aspects of their business such as selling products or services, running the business back end, scheduling order and so much more. Undoubtedly, it’s hard to keep up with the accounting tasks, such as tracking your income and expenses on a daily basis.

 Also, hiring an in-house accountant or bookkeeper can cost you more as you might need accounting or bookkeeping services for few hours a month. If you hire a full-time employee, you need to provide all the employee benefits such as incentives, salaries, leaves, etc., which increases your employee turnover and administrative burden.

Tracking your income and expenses on a daily basis,is now made easy,with the help of a virtual accountant.

The following are the more reasons you should hire a virtual accountant:

1.  Virtual Accountant reduces your overhead expenses.

You can save a lot on unnecessary expenditures by hiring a virtual accounting service,which  work on a contract basis, eliminating the need to hire an employee and pay vacation time, benefits, payroll taxes, additional office space, etc.

As remote financial experts, virtual accountants spread these costs across their client base to maximize quality and minimize costs per client. They address your internal record-keeping risks and provide fully-vetted information you can rely on.

Money apart, you also save time spent on recruiting an internal bookkeeper, training and managing them.

2. Easy Access

 Virtual accountants perform their tasks online; you don’t have to set a separate accounting department. They have their own office space and you can easily connect yourself with them through a simple email or phone call. You can also  hold virtual meetings with your accountant, via many platforms like Skype or Zoom. Virtual accountants have very flexible schedules and are available to meet your needs and address your questions.

VAs provide real-time access to your financial reports anytime and anywhere you want. You can ask for your financial reports whenever you want. You have your data at your fingertips when you need it, via any device. Virtual accounting services are delivered by experienced professionals.

3. Leverages on technology

VA’s should allow you a single point of contact for all your needs and questions, backed up by a team. Unlike other bookkeeping options, you don’t have to worry about losing the privacy of your data. Your data is always accessible to you through secure logins, and always timely and accurate.

Virtual accountants help you leverage technology for your business. They provide 24×7 record access to you through a secure internet connection. The team’s software specialist suggests apps and functions to help you get the most out of its services

4. Gives you more time to focus on your business.

By subcontracting the recordkeeping to a trusted service provider, you free yourself from the tedious tasks of managing accounts and taxes.  You can utilize this time to review and manage company productivity, the recruitment process or other current business planning needs.

5.    High Skills and Experience

Virtual accountants are highly qualified experts that are capable of performing bookkeeping tasks such as accounts payable and receivables, bank reconciliation, tax preparation etc. More the experience, more you can trust the work abilities of a virtual accountant.

6.    Less Training Expenses

Virtual accountants keep themselves updated with every latest technology and government norms. This saves your cost of training and orientation programs that you might have to spend in your in-house accounting department.

7.    A Clear Picture of Your Finances

Virtual accountants take the entire accounting burden off your shoulder and enable you to focus on your core business operations. They give a clear picture of your finances and help you make an informed business decision.

8.    Valuable Advice for Business Growth

 Virtual accountants not only manage your accounting processes but also give you sound financial advice that would aid your business growth and expansion.

9.  Affordable Fees

You can get virtual services at a competitive fee that suits your budget, unlike the higher cost associated with in-house accounting department. Hiring a virtual accountant eliminates costs of salaries for employees, providing health insurance, etc.

10.    Saves Cost on Software Investment

 When you choose virtual accounting services for your business you don’t have to invest on different accounting software or worry about installing upgrades, as your virtual assistant is well-equipped with the latest software and upgrades.

11.    Improves Cash Flow

 Virtual accountants efficiently manage all the aspects related to your cash flow. They record all the income and expenses and provide you useful financial insights.

12.    Prepares You for Taxes

It is quit stressful and costlier to wait until tax season, before monitoring your business accounting; your virtual accountant will maintain all your financial statements accurately and prepare your taxes.

13.    Eliminates Time Constraints – When you hire a virtual accountant, you can ask them to accomplish your accounting task anytime, as they work on holidays and round the clock. They work on different online portals, which give you access to your financial data.

14. Offers extra services to help you manage your business

With their team of accountants, VA’s can provide you with additional information services at your request. If you want to look at sales growth over a specific period, for example, you can work with your VA team to produce the report you need. Receiving ad hoc reports, upon request, makes managing your business easier and provides timely information that helps you make better business decisions.

Do you need virtual accountancy and tax services? Send your request to

States ,Not FG Should Collect VAT, Income Taxes, Others

The Federal High Court sitting in Port Harcourt has declared that it is the Rivers State Government and not the Federal Inland Revenue Services (FIRS), that should collect Valued Added Tax (VAT) and Personal Income Tax (PIT) in the State.

The court, presided over by Justice Stephen Dalyop Pam, has also issued an order of perpetual injunction restraining the Federal Inland Revenue Service and the Attorney General of the federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS, personnel income tax and Value Added Tax.

Justice Pam made the assertion while delivering judgement in Suit No. FHC/PH/CS/149/2020, filed by the Attorney General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant).

The Court, which granted all the eleven reliefs sought by the Rivers State Government, stated that there is no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax, Education Tax and Technology levy in Rivers State or any other State of the Federation, being that the constitutional powers and competence of the Federal Government is limited to taxation of incomes, profits and capital gains which does not include VAT or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusive Legislative List of the Constitution.

The judge dismissed the preliminary objections filed by the defendants that the Court lacks jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.

The court agreed with the Rivers State Government that it is the State and not FIRS that is constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by items 58 and 59 of Part 1 of the Second Schedule of the 1999 constitution as amended.

Also, the court declared that the defendants are not constitutionally entitled to charge or impose levies, charges or rates (under any guise or by whatever name called) on the residents of Rivers State and indeed any state of the federation.

Among the reliefs sought by the Rivers State Government, is a declaration that the constitutional power of the Federal Government to impose taxes and duties is only limited to the items listed in items 58 and 59 of Part 1 of the second schedule of the 1999 constitution as amended.

The Rivers State Government had also urged the court to declare that, by virtue of the provisions of items 7 and 8 of the Part II (Concurrent Legislative List) of the Second Schedule of the constitution, the power of the Federal Government to delegate the collection of taxes can only be exercised by the State government or other authority of the State and no other person.

The State government had further asked the court to declare that all statutory provisions made or purportedly made in the exercise of the legislative powers of the Federal Government, which contains provisions which are inconsistent with or in excess of the powers to impose tax and duties, as prescribed by items 58 and 59 of the Part I of the Second Schedule of the 1999 constitution, or inconsistent of the power to delegate the duty of collection of taxes, as contained in items 7 and 8 of Part II of the Second Schedule of the Constitution, are unconstitutional, null and void.

Lead counsel for the Rivers State Government, Donald Chika Denwigwe (SAN), who spoke to journalists after the court session, explained that the case is all about the interpretation of the constitution as regards the authority of the government at the State and Federal levels to collect certain revenue particularly, VAT.

“So, during the determination of the matter, some issues of law were thrown up like, whether or not the case should be referred to the Court of Appeal for the determination of some issues.

“The court noted that the application is like asking the Federal High Court to transfer the entire case to the Court of Appeal. In which case, if the court so decides there will be nothing left to refer back to the Federal High Court as required by the constitution.

According to Denwigwe, the court refused that prayer and decided that the case was in its proper place before the Federal High Court and to determine it.

Donald Chika Denwigwe, SAN (middle) lead counsel to Government of Rivers State and Ken C.O. Njemanze, SAN (left) briefing journalists after the Federal High Court in Port Harcourt on Monday declared FIRS collection of Value Added Tax in Rivers State unconstitutional.

Speaking on the implication of the judgement, Denwigwe said it is now, unlawful for such taxes as VAT in Rivers State to be collected by any agency of the Federal Government.

“In a summary, it is a determination that it is wrong for the Federal government to be collecting taxes which are constitutionally reserved for the State governments to collect. The implication of the judgement is that the government (Federal and State) as an authority under the constitution, should be advised by the judgement that it is the duty of all government authorities to comply with and obey the law so long as the court has interpreted it and said what that law is.

“So, in other words, the issue of Value Added Tax (VAT) in the territory of Rivers State and Personal Income Tax should be reserved for the government of Rivers State.”

Counsel to FIRS, O.C. Eyibo said he will study the judgment and advise his client.