10 Benefits of Tax Planning For Businesses

Benefits of Tax Planning to Improve Your Business

Tax planning can have some great benefits for any business, large or small. It involves evaluating the business’s current financial situation, estimating probable profit or loss for the next quarter, and drawing up strategies to minimise tax while maximising the value of the business. Here is our checklist to assist:

1. Save tax

The main objective in tax planning is to reduce the amount of tax your business pays by maximising its deductibles.

2. More to invest

By knowing your tax liabilities, you can reinvest funds that would otherwise have been earmarked for tax back into your business.

3. Strategize

Tax planning is a great opportunity to look at the options open to your business and fine-tune its strategies in all areas while we’re analysing its data carefully.

4. Start early

The earlier in the financial year that you start, the more strategies that you can put in place to maximise the effects of your tax planning.

5. Get a head start

For those businesses operating from a trust, tax planning provides a close estimate of the trust distribution minutes well ahead of time, saving you from needing to rush to make a decision.

6. Get confident

Working through our process of tax planning allows business owners to increase their knowledge about compliance and how it works, learn strategies for minimising tax, and take a more hands-on role in the overall management of their business.

7. See the big picture

Tax planning provides some great insights into a business that allow its owners to assess the larger situation: whether the structure of the business needs to change; understand where operations are occurring; get a sense of the potential profit areas currently untapped or underexplored; find new investment options and decide how best to structure those investments.

8. Superannuation optimisation

Tax planning offers a chance to look at your superannuation strategies and make them as effective as possible, with a range of options like salary sacrificing to super and self-managed super funds to consider.

9. Peace of mind

Eliminate unnecessary stress and uncertainty by knowing just what your business’s tax liability will be and make business decisions from a firm, stable, factual base.

10. Utilise recent Budget changes

Any applicable federal Budget measures can be taken into consideration, as our team have all the up-to-date tax knowledge. This ensures that your business can achieve the best possible tax outcome and that it does not miss out on any useful incentive schemes.

If you would like a further breakdown. Feel free to download our E-book, tax planning guide for businesses. We also have articles for personal tax. To discuss further, call us on  (03) 9888 3175, or book an appointment via email.