You may not be aware of the fact that what you do on a day-to-day basis to earn your income may be classed as a business. Whether you are running a farm, or involved in other agricultural industries, sub-contracting your manual or professional services to another firm or company or, operating under a family trust; it’s all business.
At Evetts and Allman, we specialise in using SMSFs with our business clients and we utilise different strategies, which include gearing, small business tax concessions, concessional and non concessional contributions and debt forgiveness. It doesn’t stop there though. We take a good look at your financial reports which reflect money spent, income earned and remaining assets. We then evaluate the current assets, intangible assets and fixed assets of your business and move forward on planning the most effective and efficient way for you to spend or gain resources. The importance of financial planning for your business is best demonstrated when a company is faced with a situation where there are outstanding debts and rising costs. A healthy and sustainable business can ride through these scenarios with some good planning.
Most businesses have periodical revenue variations, which means there are times when cash can be plentiful, as opposed to when there are cash shortages. By making a sound financial plan, the business owner keeps a tight restriction on expenditures, especially during the periods when there is a decrease in cash flow – the last thing any business owner wants is to be unable to meet payrolls!