Arnold & Finlay Accountants & Planners Pty Ltd

27/04/2023

Cameron's latest Blog - Will you thrive in the economic conditions ahead?

This morning I read an article by Nexia Accounting NZ, advising that the NZ Government has ended its support to business during the Covid lockdowns. The withdrawal of support, high inflation and low business confidence has raised pressures on NZ businesses and there has been a marked increase in inquiries on ‘Insolvency’.

Is this relevant to Australia? ASIC provides weekly reports on the levels of company insolvency. What the graphs show is that the level of insolvency is increasing quite fast from around 700 a month towards 900 a month, for a total of 4,900 this financial year to date.

The industries most affected are Accommodation and Food, Construction (30% of the total), Manufacturing, and Services.

The Reports though do not tell us the reasons for insolvency. Debt recovery action by the tax office would certainly be one, over 100 Director Penalty Notices are issued daily and sometimes the only recourse is liquidation, cost increases, difficulty in attracting staff or sourcing materials, slower discretionary spending, and simply ‘cash flow problems’.

What we can see from this is that there are more businesses affected than usual, and at the moment the problem is more acute in certain industries. So, what should businesses do to ensure they thrive under the current and future economic conditions?

Cash is King
Businesses need strong cash flow and access to cash. Those who are struggling need to carefully assess their business model to find out what is blocking their cash flow.

Examine Lines of Credit
Look at the lines of credit extended to clients (terms, amount, etc.). It may be growing, even out of control. It may be evidence of growth but also means more stock to hold, more overheads, even quicker payments to suppliers. Perhaps change the terms of credit, and/or seek finance based on Receivables to secure a smoother or regular cash flow.

Vet new Clients
Do some background research on new clients before working together. Do they fit your ideal customer profile, are they in a stable financial position? They may owe large amounts to previous suppliers, why did they switch? If you do work, will they pay on your terms, could the payments be a preference and recoverable by those prior creditors?

Avoid Ageing Debtors
Statistics show customers taking longer on average to pay accounts. Chase up overdue accounts quickly. It is unpleasant and something we’d rather not do, but it is your money and your business that must be protected. Make allowances if genuine, but as a one-off, and re-state the future terms of payment.

Invoice Regularly
Invoice as soon as possible in the workflow cycle, full payment due on (date), or a deposit, a claim each 14 days, balance in full on delivery or completion. Much of your business cash flow likely depends on invoicing, there are no fixed rules for this function, you can have different terms for various customers (past performance, yet to establish credit worthiness, short term smaller debts, etc.).

Understand the Financials
Owners need to understand how the growth of the business will be achieved, the effects that will have on revenue, costs, debt and repayments, and working capital (stock, cash, debtors etc.,). One of the most important things that businesses can do is to create a cash flow forecast, which anticipates the cash needs and identifies potential cash flow problems before they occur.

Cash is the issue that means the survival of your business. Conduct an analysis of your processes and systems, ensure they are working properly, seek advice or support, and solve weaknesses before they get out of control. If addressed early, insolvency and those big costs are usually avoided.

If you seem to be having difficulties, contact us and discuss options that may assist you to improve the situation. It’s better to do this now while there are options, rather than leaving it too late to take effective action.

07/11/2022

Cameron's latest Blog - October Federal Budget (and some concern for the future)

The Federal Budget was delivered last week. The good news is there was really no tax or superannuation changes that affect business. The bad news is that with interest rates still rising (expect the Cash Rate to finish around 3.5%) and labour costs higher with continuing staff shortages, don’t expect any assistance from the Government.

Winners were:
- Families – childcare subsidies extended, increased benefits of Paid Parental Leave
- Pensioners – deeming rates frozen until June 2024, new measures to downsize homes using pension incentives, and income levels increased significantly for eligibility for the Seniors Health Card.
- Retirees – the Downsizer $300,000 Superannuation contribution eligibility age is reduced to 55 years.

Concern for Future Years

This wasn’t the usual Federal Budget, it was about Labor winding back what the previous government had planned and to put in place its new policies.

The Treasurer and Prime Minister have expressed very negative economic expectations. Past experience tells us most estimates from Treasury are wrong, so actual economy outcomes may not be that bad. However, government debt is high, so tax increases could be made in the next Budget (May 2023).

ATO Audit and Collection Activity

The ATO has received extra funding to increase its audit activity, and to collect outstanding debt. Consider what could trigger an ATO audit:
- Being in a target industry – where cash is common and so the potential for avoidance is higher.
- Your income is low compared to ATO and industry benchmarks.
- Not declaring all income – the ATP has a sophisticated data matching system, for employment, interest, dividends, crypto, rentals, other contract sources.
- Having a lifestyle that does not match declared income.
- Anonymous allegations or tip-offs.
- Poor lodgement and payment records for income tax, GST, superannuation, etc.

ATO Ruling on Professionals and Profit Allocations

A new ATO guidance (PCG 2021/4) changes the way professional firm profits can be split among a family group, applying from 1 July 2022. A professional firm is one providing knowledge-based services, such as medical, legal, financial advisors, etc. To avoid an audit, basically, the family group needs to pay tax at a combined average rate above 35%. Our end-of-year Tax Planning meeting will be important to get this right.

ATO and Family Trusts

The ATO believes sec. 100A of the Tax Act means that distributions made on paper need to be supported by cash paid to the beneficiaries. In a recent Court case, ‘Owies’ case, the trustee was removed and distributions changed because two beneficiaries complained they had been excluded from distributions.
These matters need to be considered before the end of the financial year – the default beneficiaries, the purpose in the Deed, and the terms of a Trustee exercising their discretion. It nay even mean changes in the trust to provide asset protection and estate planning advantages.

Cashflow

Costs are increasing spurred on by inflation, interest, labour, and power prices. That means you need to closely monitor your profit margins and ensure prices are set at a profitable level. We think it is essential to look forward for at least 12 months, and prepare both a monthly Profit and a Cashflow forecast (timing may be different for cashflow).

This provides confidence in your business model (the way the business runs) and to ensure that pricing, operation and cashflow are working for you.

Next Steps

The Budget was not the topic for this Newsletter, it is the assumptions and scenarios underlying it that raises concerns, together with the changes to trusts and professional profits.
These can’t be dealt with “eventually”, but need to be considered before 30 June, and is the reason we keep stressing the importance of trusts and tax planning before the end of the financial year. We suggest we have an initial call or meeting to see if these key changes may affect you. Economic conditions, government policy, tax office activity will all be factors to watch and be aware of in the next one to three years, so please don’t get caught out.

15/07/2022

Cameron's Latest Blog - "Are you on the Marketing Couch?"

Because of two years of pandemic, some standards may have changed; the standard of dress (casual Friday a couple of days a week), fewer meetings, long periods of marketing inaction. That inaction can lead to problems for your business.

You Need to Remain Visible
There is a very simple marketing mantra:
‘Stay in front of the people you know, over and over again, in a way that positions you as a likeable expert’.

Is that all? Not quite, but live up to that rule and things can happen for you.

People stumble on the ‘over and over’ part, but they don’t forget to be likeable or an expert.

What happens most is they stop marketing, either too busy, or distracted, or complacent.
Stop marketing and eventually the phone stops ringing too.

A Bit is Way Better Than Nothing
If you want people to remember you and refer you, you need to find some way to stay top of mind.
There are other, even small, ways to stay visible:
- A regular newsletter or blog
- Send emails to people you know, keep them informed
- Show up at networking events on a regular basis so people get to know you better
- Post updates on Linked-In, comment on other posts
- Send birthday cards, meet for coffee and talk, don’t sell
- Do something!

Would More be Better?
Sure. It’s certainly better to train for a marathon than occasionally walk around the block. However, the walk is still way better than just sitting around.

Marketing works the same way. If your program vanishes for months at a time, you might too.

Here’s the Bottom Line (finally!)
Marketing is messy and unpredictable, where results may arrive some time down the track. It can even be ignored for a long time without noticing a negative impact.

Until, one day, you have a problem.

So, if your strategy is to sit around hoping for something to turn up (hope is not a viable strategy), look for ways to be and stay visible.
It’s easy to do and as you start to see results, who knows, you may be inspired and even develop a grown-up marketing program, or train for a marathon.

15/02/2022

Cameron's latest Blog - Independent Contractors

The High Court has delivered two judgements that can be expected to have a major influence on independent contracting in the future. There were two cases. Jamsek and Personnel Contracting.

Jamsek (Employer Win)
This looked at Truck drivers who had been employees for years and changed to contractors in early 1980’s, purchased trucks and plant, and operated in partnership with their wives. The Federal Court found they were in fact employees (the company had day to day control, they had to work particular hours, they used the employer logo, etc) and so super and other employment benefits were payable.

The High Court overturned the ruling because the contractors possessed a) significant assets, and b) operated as a partnership, like a business.

Personnel Contracting (Employer Loss)
A labour hire company engaged an individual as a contractor. He worked on building sites under supervision and control, worked regular hours, and followed company directions. The high level of employer control and lack of business characteristics led to the determination he was an employee.

What does it mean for business?
In these cases there was as much focus on the specific terms of the contract as the post-contractual conduct. However, the label parties give to the relationship are not really relevant, that is, their rights and duties characterise the relationship.

What now?
1. The contract must be in writing and the terms that define a worker’s status must be agreed at contract formation. These must be as robust as possible to avoid employment claims in the future.
2. Post-formation, all factors relevant to the ongoing contractual relationship will be considered to determine a worker’s true status.
3. In Q’ld, an independent contractor is included for WorkCover and Payroll Tax.
4. An independent contractor is entitled to superannuation under the Tax Act (The ATO can go back indefinitely).
5. Fair Work will investigate any claim for underpayment, so ensure the contract terms are clear, retain all worker claims for payment (for hours, times worked, use of own equipment, details of payments, etc.).

It seems to me that the “usual” type of sub-contractor arrangement, of an individual ABN and an invoice showing an hourly rate won’t succeed in the future, and claims for under-payment and superannuation are highly likely. If you intend to engage sub-contractors, ensure the contract is comprehensive and precise and signed by both parties. Keep all documentation. Bear in mind it costs an employee nothing to lodge a claim to FairWork, Superannuation, or WorkCover, the employer has to prove the person is a true contractor.

17/11/2021

Cameron's Latest Blog - 'Avoid Underpayment of Wages!'.

Even the big companies get pays wrong – CBA, Bunnings, Woolworths, 7 Eleven. Not only did it cost those companies money, there was a loss of reputation plus significant costs of rectification. In Queensland, ‘wage theft’ is now a criminal offence (for intentionally failing to pay or underpay employees).

How Does Underpayment Occur?

There are six main events or causes of underpayment:
1. Awards are complex and it is possible to choose the wrong award or misinterpret requirements on allowances, overtime, penalty rates, loading, and pay grades;
2. Award increases have been missed or incorrectly entered into the payroll records;
3. Hours worked are wrongly recorded, so incorrect application of pay rates and penalties;
4. Tax Withholding is wrongly calculated;
5. No regular evaluation of pay grade or classification;
6. Incorrect engagement of individual sub contractors at an agreed or nominal rate (these are more likely to be permanent part time, and so receive super, workcover, leave loadings, etc.).

Detection of Underpayment

There needs to be regular internal checking and pay system reviews; even annually is a step forward.

How to Rectify

This can be a labour intensive task, there is so much that may need to be checked. An employee can bring an action for recovery for up to six years after an underpayment occurred, so check for more than just a few months. Keep people informed and tell them the plan for adjustment, you need to prevent complaints to Fair Work or even escalation to a criminal complaint. It is not only the underpaid wages to consider, there is also superannuation, perhaps payroll tax, and also PAYG Withholding.

Do you Need Help?

We are seeing underpayment complaints to Fair Work (especially by underpaid ‘sub-contractors’) and to the ATO for superannuation (mostly from individual ‘sub contractors’). These take considerable time to resolve (however, the cost is usually covered by Audit Insurance).

We can help interpret and to qualify any possible exposure or costs. If you would like to do this yourself but don’t now where to start, please reach out to us.

13/10/2021

Cameron's latest Blog - Avoid Errors in Employees vs Contractors

The Current Tax Landscape
The ATO and State Revenues are now far better at identifying and pursuing non-compliant employers. Knowing the difference is important because it impacts Tax Withholding, Superannuation, Fringe Benefits Tax, WorkCover, Payroll Tax and Pay Awards.
Failure to comply can result in back pay or adjustments, penalties and interest. It is critical to understand these employment/tax rules and obligations, and take steps to manage them.

Key Differences
No single factor is determinative of the relationship, it is necessary to look at its real substance. The major factors to consider are:
Control – a contractor runs a business, usually engaging their own employees or subcontractors
Payment Basis – employees are paid for time, contractors are remunerated for the completion of an agreed result
Independence – an employee is part of the employer’s business, but contractors are free to take on other work and have the flexibility to decide what work they will do, and when
Risk – a contractor is liable for defects and to rectify the work at their own cost
Equipment – contractors provide the equipment and Plant to carry out the work.

Common Misconceptions
An ABN does not make a person an independent contractor
Using the name or even having a written agreement also does not suffice
Even though a person consents to be engaged as a contractor it does not remove the financial and legal liabilities of the employer
‘Everybody does it’ is not sufficient cause
Definitions are not always the same for different tax purposes (eg., an individual contractor is entitled to superannuation and WorkCover).

Consequences of Getting it Wrong
The Fair Work Act refers to ‘sham contracting’, making the employer liable for substantial penalties (up to $63,000)
Disgruntled contractors make claims with Fair Work for underpayment, the ATO for superannuation entitlements (no statute of limitations applies), and WorkCover for injuries
Where a contractor is determined to be an employee, Fair Work acts for them to claim back pay, leave and other entitlements. The employer is liable to shortfalls of wages etc., and often substantial penalties. Directors are personally liable for unpaid PAYG Withholding and Superannuation under the Director Penalty Regime, and the ATO will recover from their personal assets.
Superannuation is a key audit risk for the ATO, and targets arrangements where it should have been paid. The ATO often goes back for 3 years, but there is no limit on time.

Get It Right
Review existing arrangements, look carefully at contracts especially with individuals, and ensure they are compliant and effective. The ATO website has an online tool to determine employee or contractor, at:
https://www.ato.gov.au/Business/Employee-or-contractor/Difference-between-employees-and-contractors/?=redirected_calc_ECDTSGETDifferenceEmployeesContractors
Current Situation
We are starting to see more audits in this area, the ATO and Fair Work are aggressive in determining the situation. Consider taking audit insurance, this could protect you for costs although won’t protect you for the findings and penalties.
‘Contracting’ may initially save you some paperwork but remember, the employer is the liable party. We’d be happy to go over your arrangements and discuss your concerns.

Employees work in your business and are part of your business. Contractors are running their own business.

24/02/2021

Cameron's latest Blog - ATO is Increasing Collection Action and Audit of Returns

Last year, the ATO paused its debt recovery, audit and lodgement activity at the height of the Covid-19 concerns.

There has been a slow restart to compliance action since the end of 2020. However the ATO reports tax and debt outstanding of $53 billion, so there is likely to be more collection and audits over coming months.

There are reports of stronger enforcement on lodgements (BAS, income tax, SMSF’s), calls to set up payment arrangements or to remedy payment defaults, and intention to audit GST and income tax returns.

While government assistance continues perhaps a business may be left alone, but from the end of March that could change.

We have recently completed an ATO audit of a client’s business for a previous year, it was essentially a systems audit to ensure BAS and tax returns were prepared from reliable records. The ATO requested the full ledger for the year, bank statements and chattel mortgages, selected documents it wanted to see, sighted log books for vehicles and the payroll records, and required explanations and proof for adjustments and errors. BAS and tax were mostly right so there was very little tax to pay, but the cost was more than the cost of preparing the returns in the first place.

The point is, consider audit insurance which is valuable and very reasonable. In the case above it paid for the whole cost (but not the tax due). Some insurers also cover any statutory returns, whether federal or state. The insurer we recommend is Accountancy Insurance (Audit Shield), and offers have just been sent out for the next year coverage. It is a low cost in relation to the costs of a full GST or tax audit.

The message is to expect more compliance and collection action. If the ATO does contact you (a real call, not a scammer) please call us right away.

17/11/2020

Cameron's Latest Blog - What's a Downsizer Contribution?

The downsizer contribution can be used to build up the balance in superannuation.

Why make this Contribution?
This can be useful for those who cannot make contributions because of age (no maximum applies), do not meet the work test (40 hours in 30 days), or may have a super balance of more than $1.6m.

Because there are so few restrictions, it allows more capital to be in super, where earnings are not taxed below $1.6m of capital and any pension paid from the funds is tax free to the member on up to $1.6m of capital. If the earning rate is 5% the tax benefit is significant. (Yes – 5% is possible!).

Qualifying Requirements
The requirements are:
- The person entered into a contract to sell their home after 1 July 2018
- The home must be in Australia
- The person must have owned the home for at least 10 years and be exempt or partially exempt from CGT
- The person must be at least 65 at the time the contribution is made, and there is no age limit
- The contribution must be made within 90 days of settlement
- The limit per person is $300,000, and can only be made on a once-only basis and on one main residence. If the whole amount is not used any balance is lost.

How does the Super Fund treat the Contribution?
It is not taxable even if the person’s super balance exceeds the cap of $1.6m at the time of contribution. However, once contributed it adds to the total super balance and if it then exceeds $1.6m, they may not be able to make additional non-concessional contributions.

Election
Download the form from the ATO website and complete it. If the election is not made the ATO could assess the amount at the rate of 45% as a non-concessional contribution.

Centrelink
The asset test excludes the main residence, but when contributed to super the contribution is then included in Assets. This can reduce the age pension paid, which is a disincentive for downsizer contributions.

Replacement Home?
There is no requirement to move into a smaller home, nor any home at all.

16/09/2020

Cameron's Latest Blog - Will 30 September be a 'Cliff' for Business?

Whether JobKeeper will cease or continue for you after September it is important that you take similar steps to avoid a possible crisis when the support stops. Predictions have been published of 1 in 6 (by Economists) or 1 in 10 (Statistics) businesses closing before December. You need to look at several key areas in order to survive if not collecting JobKeeper, because being in a business in a recession is made much worse by politics where communication is about power but only one-way, although it is an essential for fostering trust.
1. Collect Debts
If you are owed money you need to collect it. Don’t be aggressive, honey works better than vinegar, but don’t ignore a problem. Perhaps the customer is just strapped, so offer a repayment plan. Make sure you have the arrangement in writing, such as you confirming it with an email. If you have to go to Court after the December moratorium ceases you will need documents to prove your offer or arrangement. Could you also secure the debt using the Personal Property Securities Register?
2. Remove Waste
Look at your business and your own circumstances. Compare the Profit & Loss Account for the last two years, what can you cut or reduce? Often there is waste in goods purchased for resale (there is also a cost in holding excess stock), are production staff efficient and productive, avoid duplicate or ineffective systems and people using your time on FaceBook or personal matters, are you sure your people clearly know what you want them to do, and look at your personal spending and consider if all is really needed.
3. Don’t Rely on JobKeeper
Wage costs have been assisted for 6 months and when it stops, what will have to change for you to stay open – reduce staff, drop unprofitable customers, cut your service levels? Look at this another way, if your customers lose JobKeeper, will that then affect you? What could be needed to deal with this; could they close owing you money, will they expect discounts or longer terms to keep buying from you, can you review your Service Agreements?
4. Consider how you do Business
OnLine is no longer a novelty or a passing phase. People’s buying habits have changed and the virus accelerated this, however they may not have the same discretionary spending power as they had last year. If you operate in one sector or location or perhaps with niche customers, you may need to be flexible and find another market (another customer, another locality, new products or services).
5. It’s all about Cash
Cash flow is critical, so collect from your customers, avoid waste, be efficient. Review your debtor terms (deposits, progress claims, payment terms, credit checks, follow-up when due). Ensure your own credit scores are okay – pay on time, don’t make applications for finance unless you need it. Forecast your expected Sales and Expenses for a year. Then forecast Cash for the same time, plus include finance payments, personal drawings, GST, and taxes. Profits may look good on paper but Cash is the lifeblood of a business.
6. Manage Inventory
If you sell goods, the general rule is that the lower the number of days sales are held in inventory the more efficient you are. A good Inventory Turnover ratio is between 5 and 10 (times a year), the number of times a year that your inventory is sold (so 5 is inventory turned over in 73 days; 365/5). Holding stock has a cost (interest, storage, deterioration), so the faster you can sell the quicker it turns back into cash. You also need to consider how long it may take to source new stock from suppliers, especially now, which may mean that more stock on hand may be temporarily required.
7. Customers and Competitors
A business loses 68% of its customers due to perceived indifference, or when a customer believes the business appears not to care whether they purchase or not. You must market well, provide great (or better) service, and stay top-of-mind with your customers.
8. Get it Right
Know what you want to achieve, get your marketing right, and ensure your systems are effective and that you are accountable for decisions. Focus on what is important or a priority. Businesses need to be right more often, avoid costly mistakes, test and measure often, go after opportunities, and keep learning. Ensure you have the information needed to make decisions, don’t rely solely on gut feelings.
Actions Required
- Do some ‘what if …’ scenarios, to look at the best and the worst outcomes, manage for the best but ensure you have a plan if the worst happens
- Refresh your website, SEO, Linked In, etc., improve your Sales Closure Rate
- Update your marketing plan every Quarter, improve one aspect of your marketing each time and monitor the results
- Look for alternatives in decisions, look at every decision from both a sales and a savings point of view
- Budget for each quarter, not just what expenses need to be paid, but also aim to improve sales and margins
- Re-do your policies, procedures and checklists (are they customer friendly, are they effective?)
- Make calls to customers, not to sell, but to be in contact, give insights or information and ensure you remain their preferred supplier.

10/06/2020

Cameron's Latest Blog -
Is Tax Planning a Sport?

It’s not (unfortunately), but there are rules and boundaries, a biased umpire (in the ATO), and a time limit (30 June) when the game ends.
Why Tax Planning is SO Important
Tax is a cost, like any other expense of the business, so can be managed and a better result achieved. However, it must be achieved within the rules and boundaries to be effective and it is a key part of forward planning and strategy.
The recommended method for planning is:
- Bring the financials up to date and estimate taxable income for the year.
- Consider the strategies you wish to implement for the next year or two (key goals, strategies for sales and profit growth, necessary capital expenditure, where you want the business to be, etc.)
- Model those strategies and understand what the numbers are saying – trends, margins, etc.
- Attend to the tax planning for end of the current year and save or defer where legally possible.
- Implement the plan for next year, and apply the tax saved towards working capital for the new plan.
- Track progress regularly and make changes as needed.
Tax Planning for Individual Tax Payers
Tax planning is not only for businesses and there are benefits which can reduce personal tax payable. The most popular strategies are:
Superannuation contributions
Whether through salary sacrifice or personal contributions the maximum deductible contribution is $25,000. There is a top-up concession where the last year maximum was not used and the balance of super is under $500,000. Also, watch the near and long-term returns achieved by your Fund and their charges. Consider a change to a better improving Fund because a little better now can significantly increase the balance for retirement. However, before changing check whether you have Insurance held within the fund. (Ask us for a recommendation if you are unsure).
Negative Gearing
Not a lot of benefit to implement at the end of a financial year but consider for the next year, whether in property or equities. The loss (income less direct expenses, interest, borrowing expenses, depreciation) can be offset against other income.
Costs re work
This could include work clothes, laundry of those clothes, use of your car for work, cost of working from home, purchase of tools or electronic equipment, software, interest and telephone, fees for memberships, attending courses, and professional development costs.
The rules are simple; make sure the costs were necessarily incurred for work, that you have the documentation, and that the costs were not reimbursed by an employer.
Tax Planning for Businesses
The first step is understanding the current profit and cash positions. The strategic decisions taken will impact income tax now and for the next year. You should also consider factors like future borrowing needs so profit may need to be higher to access the loan required.
This is a Summary for reducing tax (in broad terms):
Reducing assessable income
- Avoid deriving income before 30 June (eg., cash received before the service or products are delivered)
- Derive capital rather than income
- Is any income exempt or tax free (some grants, capital settlements)
- If a capital gain, are Concessions available?
Increasing deductions and offsets
- Maximise deductions (excluding non-deductible expenses like entertainment)
- Claim immediate write-offs ($30,000 up to March, $150,000 to 31 December)
- Accrue expenses, where the cost is known and will be paid shortly after 30 June
- Use Federal Budget concessions where available.
Reduce the rate of tax
- Consider tax offsets
- Spread the income across entities where the tax rate is lower
- Move income producing assets to another entity where the tax rates are lower
- Consider the use of tax entities (partnerships, companies, trusts, using tax losses, superannuation esp. SMSF’s).
Stocktake
The Tax Act requires each business that buys or manufactures product to do a stocktake at the end of each financial year. As well as meeting tax obligations a stocktake results in accurate financial reports, helps you understand your stock levels, (clear the excess or buy more), improves cashflow by identifying slow moving stock, analyses your pricing strategy, and is important to planning a business improvement strategy.
However
Tax planning can usually save some tax. Even if the saving is not big, you al least know what the tax payable will be and when, and you can provide for it and so avoid the worry when it is due but there won’t be enough to clear the tax due.
Also, there may be other concerns that are just as big as tax, like asset protection, borrowing for a new home or investment, succession issues, cash flow and working capital. Bear all of these in mind, and get the result you want, or as near as possible. It’s about getting a better tax outcome but there may be other issues to consider and are just as important for you.
Finally, we are good with numbers and the financial modelling that helps you make the right decision before you take action, we can assist to articulate goals and strategies, project profits and cash flow, and keep you on track with tax planning. It’s a small investment for a lot of benefit.