Before you pay too much tax this year… A second opinion may save you
We all have to pay our fair share of tax – correct! Whatever your accountant’s computer spits out, that’s what you have to pay – incorrect!
As the owner of a small business, you’re not dealing with the typical individuals’ single group certificate at the end of the tax year scenario. Your business, even if quite straightforward, is a collection of fairly unique elements and sets of circumstances. Different people, different reward structures and remuneration packages, diverse expenses that may be seasonal in nature or as regular as clockwork. It’s a lot and no two businesses are exactly alike, not even franchises. That’s why, tax files can be prepared a little differently and yield vastly different results for the very same business, in the very same tax year.
Acceptance is the enemy
So, if your business is so different to everyone else’s, your accountant and/or your numbers team, simply must treat your business differently - on its merits. If, however, your team takes the cookie-cutter approach and doesn’t consider what is best for your business, given your set of circumstances etc well, you are going to pay too much tax. You just are!
Knowing this, you now know, if you didn’t already, that you can and should take steps to ensure you’re paying only your fair share of tax and no more. Accepting a tax payable figure that seems a little (or a lot) too high is both ridiculous and unnecessary. It will end up biting you, your business and inevitably your family. That’s why acceptance is absolutely your enemy and why it is absolutely worth getting a second opinion.
I can get a second opinion? How?
Let’s start here, with three brief test cases. It’s no secret that we like a nice comfortable car to drive around in. We’re even more comfortable if it’s a company car because of the savings available to us when we purchase for the company, as opposed to adding to our own liability. Now imagine that you’ve had this car for say, 4 months. All of sudden, you’re hearing an expensive “knocking” sound coming from the engine. The mechanic agrees the car’s still under warranty but assures you that the sound really doesn’t mean anything and it’ll be fine. Get a second opinion!
What about if the car is not under warranty because it’s now 5 years old. The mechanic says it will cost $4,500 to fix. Hmmm. Get a second opinion.
Your accountant breezes through your BAS for the last financial year, hits the calculator and gives you a hefty figure to pay to the ATO. Get a second opinion.
If you feel like you could be doing better tax-wise, we at Inspire, would love to take a “look under the hood” of your business to let you know how much tax we could save you. The beauty of this is we guarantee you that we’ll find at least $500 worth of tax savings just by having a look. If not, we waive the $500 plus GST fee. That’s a win.
How big that win turns out to be can vary but it’s not unusual for in depth examinations and some remedial steps around business structure for example to yield tens of thousands of dollars in tax savings for our clients. Definitely worth a second look!