Our Insights

Timing

Don’t leave it too late to the end of financial year. This makes it difficult to implement tax saving strategies in time. Often between February – May is the best time for a profit estimate.

Cash Flow

Often tax saving measure require an outlay of cash later in the financial year. It is important that a plan is set in place to have necessary cash reserves to ensure the day-to-day operations can continue while spending money for the purpose of saving at tax time.

Don’t spend for the sake of it

Buying large capital items in order just to save at tax time can be the wrong decision. It is essential that the purchase of the asset fits in with the plan of the business. The asset needs to be purchased either to grow business operations or improve the profitability of the business.

Take future financial years into account

It is important to realise that a decision to delay income or bring forward expenses to produce the best outcome for the current financial year eventually can catch up with you, so it is prudent that this strategy is used concurrently with other tax saving methods.

Seek professional help

Often business owners are busy attending to their day to day operations. Profit estimates performed by a third party often provide insights and strategies to grow the business to assist business owners.