Blog & Resources

Tax Planning v Value Planning.

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

Video 2: Reducing Assessable Income (vs Value Planning)

Video 3: Increasing Deductions (vs Value Planning)

Video 4: Paying Lower Tax Structures (vs Value Planning)

Video 5: Reviewing Stock Ledger (vs Value Planning)

Video 6: Conclusion (Tax Planning vs Value Planning)

If you would like to discuss further, please contact us:

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
Phone +61 3 9428 1062

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