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Most common tax questions at EOFY

As tax time rolls around, the phones at Nero Financial are always ringing. We love helping our clients manage everything from their cash flow finances to their long-term business goals. So, to save you time this EOFY, here are some of the most common questions we get asked at tax time.

Q: My business has struggled throughout COVID – can you help?

End of financial year can be a scary time for business owners, especially those who may have struggled to stay afloat during the pandemic. With many of the government’s financial safety nets now gone, the onus is back on owners to ensure staff are paid and the lights stay on.

While taking advantage of all the different tax deductions available to you is one useful strategy, it’s important to look to the future. Where do you want your business to be in the next 12 months? If you simply want to ride out the post-pandemic storm with your business intact, cash flow financing may be a good support tool. If growth is what will help you outpace your competitors, then a business loan could help you reach that milestone. Whatever your needs, Nero Financial can help.

Q: How can my business become more efficient over the next 12 months?

Depending on the type of business you own and the industry you operate in, restructuring your operations with new technologies can help make you more efficient. ‘Digital transformation’ is a buzzword that’s been circulating for the past couple of years, and for good reason – investments in mobile technology, automation tools and big data/analytics are higher than they’ve ever been.

Choosing the right technology to invest in will depend on your specific circumstances, but even something as small as shifting your ordering and shipping system to the cloud, rather than keeping it on-site, can save you money and make your processes more efficient.

Q: What type of loans can help my business thrive?

Believe it or not, EOFY is actually the ideal time to take out a business loan. From taking advantage of the instant asset write-off scheme to using a loan to grow your business, a little extra cash can go a long way at tax time.

“Nero Financial can help business owners access a wide range of lending options,” says David Crook, Managing Director at Nero Financial. “Cash flow financing, asset and equipment loans, lines of credit and more – we work to understand your needs so we can help you secure the right type of financing.”

Q: Should I just do my tax return myself?

While we aren’t tax advisors, we do get this question a lot from business owners. Especially for those who have struggled throughout the pandemic or are dealing with seasonal fluctuations, it can seem like a good idea to eliminate the cost of a tax agent and complete the return yourself. But business taxes are far more complicated than individual returns, and if you make a mistake you could be on the hook for large fines.

While it may set you back several hundred dollars each financial year, an experienced tax agent will know about all the deductions you can access – which in most cases will more than cover the cost of hiring someone to do your tax in the first place. Best of all, using a tax agent is itself a deductible expense, so you’ll get to claim it back next EOFY!

EOFY shouldn’t just be about how much you owe the tax man. There are great savings to be made if you know where to look – and we can provide the capital to get you started. Contact Nero Financial today or call 1300 025 949 to find out how we can help with the right lending solution.