As an accountant working with small businesses, we are often asked by clients the best way to reduce their tax position.
Minimising you tax liability is a great strategy for increasing the cash flow and profitability of your business. However it can often be a double edged sword whereby certain tax planning measures can decrease the overall value and profitability of your business.
Having an appropriate structure in place can ensure better tax outcomes, but many tax planning measures only defer your tax liability (kick the can down the road) and have an adverse effect on the longer term value and profitability of your business.
Focusing on minimising your tax without other considerations can result in your business having a significantly less value over many years.
The videos below elaborate on some of the issues of completely focusing on tax mimisation.
Video 1: Introduction - Tax Planning vs Value Planning
https://www.youtube.com/watch?v=AzfXU2YRhvw
Video 2: Reducing Assessable Income (vs Value Planning)
https://www.youtube.com/watch?v=vM6P87oH0BA
Video 3: Increasing Deductions (vs Value Planning)
https://www.youtube.com/watch?v=oT_gtIOAvl0
Video 4: Paying Lower Tax Structures (vs Value Planning)
https://www.youtube.com/watch?v=fTms-pL1PL0
Video 5: Reviewing Stock Ledger (vs Value Planning)
https://www.youtube.com/watch?v=TN74R7G_nwU
Video 6: Conclusion (Tax Planning vs Value Planning)
https://www.youtube.com/watch?v=LzuMvGyt1GE&t=14s
If you would like to discuss further, please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandco.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.au
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