By Mike Bowdler
13 December 2016
After twenty odd years of working with small business owners to help them achieve their financial goals, one key factor to business success has come to light over and over.
That factor is planning. Good planners have a much better chance of business success!
As all businesses know, there are good years and bad years. Tax planning is critical in the good years when managing the tax position is foremost in our minds. Bowdler Tax & Accounting are specialist accountants for small business and understand the many concessions available. We are constantly working to eliminate the peaks and troughs between the good years and the bad to legitimately reduce tax. Tax planning can be also be important during the bad years as lower incomes can open up opportunities, eg selling investments when the decision has been put off in the past due to tax concerns or reducing PAYG Instalments to help cashflow.
Another important and often stressful part of any business is succession planning. A succession plan is a strategy put in place for a business to transition from one owner to another, often from one generation to the next. Too often we see these decisions rushed because one of the 4 D’s occur – death, disease, divorce or dementia. A succession plan should create the framework and establish the pathway to move forward with the process. For many, this can be a confronting experience. These discussions are always better started sooner rather than later as it generally takes time for everyone involved to reach the same point. You don’t have to have all the answers straight up, but starting the discussion early is the best way to achieving a smooth transition.