Small Business; No Books?

[Chang_paarp]

I have been looking a some businesses online and asked for a few details.

One reply worried me;

Are there any financial records to assess? NO. AS IT IS NOT REQUIRED AT THIS LEVEL.

What sort of lease is on the property and how long does it have to run?

LEASE IS ANUALLY ROLLING, RELIABLE LANDLORD (COMPANY). YOU CAN RUN IT AS LONG AS YOU WANT.

Is there a level where the reportiong requires some documentation?

I guess this business was not registered for VAT.

Should I be running in the other direction?

Or sitting out the front taking notes?

Any comments?

[tingtong]

the exact business model that my wife's cousin has. I did ask them the same questions.

For VAT, they say they pay some pre set annual, like many small shops, or street cart sellers.

My best guess it might be as with my small bike. Anyway, I even find that slightly bigger shops, with better contracts for lease still dont have any reliable documentations, accounting sometimes. Even the ones in business brokers databases, which i found odd, that they with them as it is. after all, money comes first, as i found out. so, do your homework, and dont trust any numbers, if they arent your own, when you look something this kind a small business.

[Sunbelt Asia]

I have been looking a some businesses online and asked for a few details.

One reply worried me;

Are there any financial records to assess? NO. AS IT IS NOT REQUIRED AT THIS LEVEL.

What sort of lease is on the property and how long does it have to run?

LEASE IS ANUALLY ROLLING, RELIABLE LANDLORD (COMPANY). YOU CAN RUN IT AS LONG AS YOU WANT.

Is there a level where the reportiong requires some documentation?

I guess this business was not registered for VAT.

Should I be running in the other direction?

Or sitting out the front taking notes?

Any comments?

In most cases, the business does not need to be in the Vat system unless they do 1,800,000 Baht in annual sales.

All companies even sole proprietorships must keep a daily track of income. This they are required to do. Many sole proprietorships are not required to keep track of actual expenses as the government has a automatc deduction they can use such a restaurant is 70% of gross sales. Ask for a copy of the PND #91 which must be filed by March 31st. This will show the gross sales.

www.sunbeltasiagroup.com

[Chang_paarp]

the exact business model that my wife's cousin has. I did ask them the same questions.

For VAT, they say they pay some pre set annual, like many small shops, or street cart sellers.

My best guess it might be as with my small bike. Anyway, I even find that slightly bigger shops, with better contracts for lease still dont have any reliable documentations, accounting sometimes. Even the ones in business brokers databases, which i found odd, that they with them as it is. after all, money comes first, as i found out. so, do your homework, and dont trust any numbers, if they arent your own, when you look something this kind a small business.

Thanks

That was the responce from a business broker, I just cut and pasted the email.

I might have to look at the purchase price as key money and assume I am setting up from scratch. It is not large business nor is the cost exorbitant but I was a little surprised that a broker was trying to sell without any sort of supporting data.

At what level would (should) I expect to see some sort of books. I know they could be filed under fiction on some occasions, but it could be a start to some idea of seasonality and %'s.

How do I ascertain that the person offering to rent me this premises is the correct person to talk to?

Yes I know due dilligance, but where do I get the information?

Sunbelt?

Anyone?

[Richard Hall]

Ask for a copy of the PND #91 which must be filed by March 31st. This will show the gross sales.

www.sunbeltasiagroup.com

Shouldn't this be PND#50 reflecting the activities of the business operation rather than PND#91 being about annual personal income?

Cheers,

Richard

Edited March 21, 2007 by Richard Hall

[Martin_F]

The businesses in question will be sole traders and therefore the income will fall under the personal income tax return พงด.90.

The พงด.50 is for companies and limited partnerships.

For a company there are requirements to keep proper records and have an approved accountant (ie somebody with a BA/BSc in accounting) for a ltd partnership the regulations are a little less stringent.

But even in developed countires some companies still use the brown paper bag for filling.