For the majority of small business owners in Australia, the sooner the end of financial year (EOFY) is over, the sooner life gets back to normal. But tax time, while often busy, can present a great opportunity to get ahead for the upcoming financial year, make strategic investments and review your cash flow requirements.
Maintaining Steady cash flow
To kick off the new financial year with a positive cash flow, some small business owners look to a small business loan to solve some of the challenges that arise at this time of year, and to take advantage of opportunities for growth.
Here are some of the ways that small business owners are benefiting from small business loans at tax time:
There are several benefits to purchasing your inventory at EOFY, including:
Investing in new equipment can be the difference between a good day and a wasted one.
If it’s time for an upgrade, end of financial year could be an excellent opportunity to do so, as the ATO recently increased the cost of assets that can be instantly written off to $30,000.
That means if you purchase assets for your small business before EOFY, you may be eligible to immediately claim a deduction from the business portion benefit. Find out how your small business can benefit from the $30k instant asset write-off and speak to your financial or tax advisor to see if you qualify.
If you qualify for the $30k instant asset write-off and new equipment might help your business stay competitive or provide better services, opting for a small business loan could be a smart strategy to help you maximise the $30k instant asset write-off scheme.
Consolidating all your outstanding debts into one payment not only helps your cash flow but also keeps suppliers happy.
By seeking finance to help consolidate your debts – especially chunky items like income tax and Business Activity Statements (BAS) – you could be in a much better place for the coming 12 months. But first talk to your financial advisor for advice that suits your individual situation.
For many small business owners, EOFY is a time to review expansion plans and generate new opportunities. Take a look at your business results based on using your existing cash flow, and think about how those results might improve with a small business loan. Consider too how additional funding could impact not only your day-to-day cash flow, but the long-term profitability of your business.
Small business loans can help businesses at different stages of their life cycle and across a range of industries. Having a solid financial plan in place will help you identify your business needs and reveal how a loan could elevate your business.
Whether your business needs new premises, more employees or an investment in product development, a small business loan can help you grasp opportunities before they disappear. Find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisers. Although every effort has been made to verify the accuracy of the information, Bizpal Finance, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.