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3/374 Pennant Hills Road, Pennant Hills NSW 2120
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Tax Planning To Improve Your Bottom Line

As a successful business owner, you must be keenly aware of the need to reduce costs to maintain profitability.

One area where we find there is often room for improvement is in tax minimisation.

What Is Tax Minimisation? 

Tax minimisation is simply the arrangement of financial affairs to keep your tax to a minimum.

Though this might sound sketchy, tax minimisation schemes are legitimate when done correctly and within the intent of the law. 

With careful planning, it is often possible to considerably reduce the amount of tax a business has to pay.

Business Planning – What Can I Do To Help My Tax Liability?

Business tax planning is not something to consider only when major purchases or disposals are afoot – it should underpin all your activity because every transaction has tax consequences.

If you’re unsure about engaging a professional to assist you with tax planning, conducting a business review might provide some guidance on how exactly your business is tracking. This may involve examining your business and its finances to answer the following: 

  • How does this year’s performance compare to last year’s performance?
  • Are your sales performing as expected, or are there factors in play that are affecting the overall business performance? 
  • How is your debt situation looking? Is it likely to adversely affect your business, and if so, what strategies are in place to address this? 
  • Are there any strategies you should be implementing prior to 30 June to manage your tax liability?
  • Have you provided for any potential tax liability? 
  • Are your investments providing the returns that you were hoping for?

There are often specific items discussed during tax planning that need to be performed ahead of the end of the financial year (ending 30 June 2022). But this is a complex field that requires up-to-the-minute specialist knowledge and considerable professional expertise. 

That’s why it’s important to decide on an accountant or business adviser, and meet with them in the last quarter of the financial year (April to June) to ensure your strategies are correctly set up. 

If you are unsure about meeting with a tax planning professional:

  • Ask how their tax planning process works. They should be able to provide you with:

    • A review of your year-to-date performance in comparison to previous financial years
    • Feedback on your business performance compared to industry standards
    • Commentary on any trends or areas of concern in your year-to-date figures
    • A review of your financial structuring
    • Business profit and income tax projections which in turn assist in all important cash-flow planning
    • A projection of your year end results based on our knowledge of your business
    • The ability to implement any changes that need to be made before the end of the financial year
  • Ask what are their suggestions for your tax planning strategies to employ

    • They should be able to suggest some strategies to assist in managing your tax liabilities and strengthen your balance sheet, on top of the business analysis that they can provide. 

How Can We Help?

Our firm has a proven track record of helping successful businesses mitigate their tax liability.

Our professionals are skilled business advisors who scrupulously avoid short-term devices that save tax regardless of the consequences – their focus is on the long-term commercial success of your business.

Contact us today to find out more.

You might be surprised to discover how much a little professional input can help your bottom line.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

Testimonial

What our Client Say

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier