3 ways you can get ahead this financial year
With a month of the new financial year firmly behind us, it's a good time to reflect on how the 2015-2016 year will pan out.
The calm after the storm, July can often feel like a period of immense fatigue. Many companies spent the end-of-June rush collecting receipts and invoices to use when submitting their year-end finance reports, meaning July fell by the wayside in terms of productivity.
However, with that month now firmly behind us, it's a good time to reflect on how the 2015-2016 financial year will pan out. One month of the year is already behind us, so you have some perspective on this financial year's possibilities.
For instance, what measures are you taking to avoid the rush again next year? Here are three tips for reducing your stress levels come June 30.
1) Improve your cash flow
The weakness of many small-medium businesses is poor cash flow, with even larger companies not exempt from cash flow pressures.
Improved cash flow is just one of the many benefits of Debtor Finance and Equipment Finance. With less money tied up outside of your business, finance solutions take the brunt of initial equipment purchase costs, making cash flow steadier and easier to manage.
2) Improve your tax strategy
With less than 11 months to go until the financial year ends again, now is the time to review your tax strategy with your accountant. Effective finance solutions are a key part of an effective tax strategy, and there are a suite of Equipment Finance products that could be suited to your tax requirements.
For example, eligible small businesses can take advantage of the accelerated depreciation measures announced in the Federal Budget. By acquiring equipment on a Secured Loan Agreement (also known as a Chattel Mortgage) enables you to take ownership of the asset from the outset, thus qualifying for immediate depreciation. Alternatively, rental repayments are 100% tax deductible which may better suit your situation.
3) Stay ahead of the game
Technology has been driving business success for a while now. However, while the sheer pace of innovations is a great thing, it puts pressure on a business to stay on the cutting edge, or risk obsolescence.
With the right equipment finance solution, you have less financial pressure when making a purchasing decision and upgrading or adding additional equipment to your finance contract ensures your equipment is never out of date.
To find out more about Classic’s finance options, contact the team at Classic Funding Group on 1300 780 895.