Tax Time. Don’t Get Stung – Be Prepared
While skimming the SMH website today I was alerted by an article on how to manage your Cash Flow to essentially keep the ATO at bay during the tax season (www.smh.com).
It caught me by surprise that it’s almost that time of year! Where have the first 3 months of 2011 gone? Are we really just about to hit April? This means Easter is around the corner, and after that it’s the end of the financial year and then TAX TIME! A potentially thrilling time for some with money coming in but a scary time for others with money owed.
If your wincing now at the very mention of the word ‘tax’ and if the thought of the ‘ATO’ makes you cringe then perhaps you need to start thinking about your finances and how you’re going to manage when the inevitable time comes along.
If you’re like me, then this year you might owe money to the tax department. So if you’re a business owner you need to start preparing, and to consider that your business may not have the funds to cover your tax bill.
If you fail to pay your tax expect action from the ATO, which could result in some embarrassing debt collections and ultimately the demise of your business.
Don’t let tax time creep up on you. Keep in mind there are always options to assist you. One that springs to mind is Debtor finance. A smart way to welcome much needed cash flow into your business by financing your invoices and freeing up cash to pay the ATO. Too many times businesses have been caught out by tax when really there is no excuse. There are options now that cater specifically to the SMEs.
Get prepared early on and ensure your business doesn’t suffer. We all have tax obligations so don’t avoid them – just find a way to pay them.