No one likes paying tax. Some clients even spend more than they should (on things they don’t need) to reduce their taxes. And whilst we understand, sometimes this is not always beneficial to you or your business. If you write off too much in your business you are effectively reducing your taxable income (not to mention your cashflow).
Not only does it reduce your cashflow by spending too much, but the next time you go to apply for finance to purchase a business vehicle, more equipment, a commercial premise or even on the personal front – to secure finance for a new home or car – you could very well get knocked back by lenders.
#1 Reason Your Accountant and Finance Broker Need to Work Together
If your taxable income, on paper, looks too low and despite whatever business success you may have achieved, the banks won’t approve the loan on the basis you won’t be able to service the repayments.
This is the single biggest reason why your finance broker and accountant need to be working together, to create a tailored financial strategy that helps you achieve your goals.
Here at Dream Financing, we have finance brokers and qualified accountant under one roof. While they offer vastly different services, our team work together to get YOU the best outcome and help you achieve YOUR dreams both in the short and long-term.
It should also be noted that you don’t have to use both services to work with Dream Financing – if you have an existing Accountant or Finance Broker that you’d like to keep using – we can work with them, too!
Small Business Accounting is More Than Tax Minimisation
From an accounting perspective, our sole focus is not just on tax minimisation.
By asking the right questions from the very beginning to understand your bigger picture goals we can come up with the right financial strategy – in conjunction with your finance broker – that will set you up for success.
It’s not about having your blinkers on and focusing on the short-term wins (like how much tax you’ll pay at tax time) – but what your financial situation needs to be so that you fulfil your dreams without getting knockbacks from the banks and lenders in the coming years.
Armed with this knowledge, we can then determine the best way to handle items like depreciation of assets.
Example: Why You May Not Want to Write Off Expenses Upfront
For example, say a tradesperson needs a new business vehicle. Based on current rules, we can write it off fully immediately, or apply the depreciation over several years.
The difference in taxable income might be $40K vs $90K. So, it’s going to be a lot harder to get a loan approved when your income shows as $40,000. The way banks treat depreciation and asset write offs vary, so this is where a good broker who specialises in self employed lending comes in handy!
Small Business Accountant and Finance Broker Brisbane
If you’re looking for an accountant and finance broker to partner with your small business, contact Dream Financing today.
With experienced finance brokers and a qualified accountant in our team, we can streamline and simplify all your accounting, bookkeeping and lending needs.
Dream Financing is the mortgage broker of choice for Brisbane North, including Eatons Hill, Albany Creek, Warner, Draper, Samford and surrounding areas. We’ll help you find the best loan products no matter what your personal situation is.
We offer expert advice on a huge range of services including home loans, investment property loans, cashflow finance for self-employed, commercial property loans, car loans for self-employed and equipment loans for self-employed.