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The importance of tax planning for your business

Every business owner hates leaving money on the table, especially when it comes to their tax. Investing time and money into your tax planning now could save money for your business in the long run.

It’s not uncommon for businesses to push their tax affairs to the back of their mind while focusing on growth and profits. But inadequate planning results in overworked and stressed accounts departments as well as the risk of paying greater tax than you needed to.

This is why it’s crucial you prioritise an effective tax planning strategy. There are instant benefits to implementing a well constructed plan in coordination with a trusted and experienced accountant, such as those in our Equil Advisory team.

What is a tax plan?

Tax planning involves forward-estimating, organising, and staying on top of your tax affairs throughout the financial year. It begins with a conversation with your accountant discussing the options around any available tax deductions or government incentives.

Tax planning offers the opportunity to take a regular, top-down view of accounts and cash flow, to ensure that the maximum amount of time and money is saved when adhering to requirements of the Australian Taxation Office (ATO). As with any strategy, tax planning should complement any growth model for your business and factor cash levels, assets and future expenditure planning.

What are the benefits of tax planning?

Reduce taxable rate/income

One of the most significant benefits to tax planning is the opportunity to reduce the applicable tax rate, or taxable income, within your business, helping you to save money that you’ve earned. Tax planning may create the time and space required to take every possible step to minimise costs.

A common result of inadequate planning is an unnecessarily large bill to the ATO at the end of the financial year. There’s no need for so many small to medium enterprises (SME’s) to pay nearly as much tax as they do, however they do not internally have the available resources or expertise to be able to minimise this without assistance.

Whereas, your accountant provides this function and advises on key strategies whether it be related to investments, deduction or expenses to reduce your taxable income.

Better managing your tax bill

There are far too many businesses who experience ‘bill shock’ when it comes to their payable taxes. Without foresight or planning, it is often higher than they expect, and a lack of preparedness and cash flow can leave them in a tough (and expensive) situation.

Adequate tax planning with your accountant may help you avoid being taken by surprise. There are tax payment options for businesses available throughout the financial year, allowing for regular instalments as opposed to a bulk payment. Your accountant can forward-plan and forecast according to your revenue and expenditure.

At Equil Advisory, we’ve assisted clients in arranging correct PAYG instalments quarterly, to eliminate the risk of ‘bill shock’. Improving the accounts workflow, such as invoicing, may assist your team in calculating and paying your tax correctly and quickly so you prevent being caught offguard. Further, an accountant may reveal new tools, software and strategies that can improve the efficiency of this process.

Creating an expenditure, offload and income strategy

Tax planning allows a business to get ahead on their expenditure, so that they are minimising their tax bill to the fullest extent, within legal obligations. Your accountant  will be able to guide you according to the needs of your business.

The sale of any assets may be subject to tax, such as capital gains, and this needs to be prepared for. The future impact on a business’ tax bill should also be taken into account when planning for any future capital expenditure, such as land, office space or machinery.

This is how the ideal tax strategy future-proofs a business and allows it to plan any future financial moves without the risk of immense tax implications at year end.

There is simply no way that a business big or small will be able to fully minimise their tax if they fail to plan adequately in advance. Small business owners in particular, shouldn’t be expected to be well versed in tax law, including detailed types of non-deductible expenses, or areas where tax exemptions may exist.

Take advantage of relevant programs

Tax planning may also help businesses to take advantage of relevant regulations, incentive programs and offset opportunities. Without the experience of an accountant many management teams may not be aware of their eligibility for these programs, such as environmental tax incentives, and wage subsidies.

For example, businesses may not understand the extent to which they can take advantage of a superannuation contributions cap limited at $27.5k for Self-Managed Super Funds. Having the right accountant can ensure that you are constantly updated as the rules and numbers are adjusted.

Speak to an expert

The bottom line is that businesses know the benefits of minimising a tax bill, but they may not know how, or they may think that they can do it themselves.

Whether you’re a sole trader looking at next year’s budget, or tax planning for a company, knowing who to speak to for the greatest tax savings is invaluable.

Our team at Equil Advisory we’d be happy to lend our expertise to your business to ensure the best possible tax strategy is in place. With the right planning and careful oversight, you may reduce your exposure, and create savings and confidence, moving into the future.

Albert Tan

Business Services Accountant

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How did you end up at Equil Advisory?
I was looking for a new place to clear my throat and break the office silence.

When did you start at Equil Advisory?
When I was assured that there would be another Malaysian member of the team.

What do you do at Equil Advisory?
Play hide-and-seek in the bathroom.

What do you do when you aren’t at work?
Go to the gym.

What is something not everybody knows about you?
I don’t know how to pronounce geography properly.

If you had to apply for a reality TV show what would it be?
Survivor.

What would your last meal be?
Macaroni and cheese with milk.

Cats or dogs?
Neither.

Gaurav Shrestha

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Everyone I knew had caught on to my long stories, decided to go find new people who had never heard them before.

When did you start at Equil Advisory?
When I heard they were having a massive Christmas party.

What do you do at Equil Advisory?
Go off on tangents and ask people if they’re good.

What do you do when you aren’t at work?
I would be out hunting ghosts or singing while playing the guitar.

What is something not everybody knows about you?
No drop of rain has ever landed on my head.

If you had to apply for a reality TV show what would it be?
Masterchef Australia.

What would your last meal be?
Double beef burger and a steak on the side.

Cats or dogs?
Cats and dogs are the most popular pets in the world. Cats are more independent and are generally cheaper and less demanding pets. Dogs are loyal and obedient but require more attention and exercise, including regular walks. But what I actually really prefer, I guess it actually depends… -character limit reached-

Albert Tan

Business Services Accountant

Email Me

How did you end up at Equil Advisory?
I have always wanted to be an accountant due to the influence of my family as most of them are accountants. I joined Equil Advisory as it offered me a different opportunity to work on compared to other accounting firms as well as allowing me to develop different skills.

When did you start at Equil Advisory?
28th February 2022.

What do you do at Equil Advisory?
My role at Equil Advisory includes tax compliance work and assisting client in their day-to-day business with EA’s outsourced CFO function.

What do you do when you aren’t at work?
Spending time with my wife, talking to my family or reading light novels.

What is something not everybody knows about you?
Love spicy food even though I can’t handle it at all.

If you had to apply for a reality TV show what would it be?
Voice actor in any cartoon shows.

What would your last meal be?
Roti Telur Bwang.

Cats or dogs?
Love cats and dogs equally.

Pragti Sharma

Administrative Assistant

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How did you end up at Equil Advisory?
I wasn’t allowed to give free food to my friends at Oporto anymore.

When did you start at Equil Advisory?
When I completed shopping for my professional wardrobe.

What do you do at Equil Advisory?
Listen intently to people’s conversations and mimic them during our lunch breaks.

What do you do when you aren’t at work?
Finesse my Australian accent.

What is something not everybody knows about you?
South India is my favourite part of India.

If you had to apply for a reality TV show what would it be?
Fear Factor.

What would your last meal be?
Steamed dumplings.

Cats or dogs?
Both!

Pragti Sharma

Administrative Assistant

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How did you end up at Equil Advisory?
When I was a child, dealing in numbers was never a problem! But still, I passed mathematics on the verge.

Gradually, I realized that numbers are in my favour and so are the associated calculations. As a result, I pursued Accounting with Finance, which helped me develop an interest in accounting systems. Further, securing a career in accounting lead me to make my way to EQUIL.

This is my first professional job, and I am too excited to be a part of the team.

When did you start at Equil Advisory?
It’s my second week at Equil! I started on 10th February 2022.

What do you do at Equil Advisory?
I have started as an administrative assistant, so my work includes responding to the client emails and undertake day-to-day admin tasks.

What do you do when you aren’t at work?
Most of my time goes out at talking to my friends and family, back home in India. If, I still have more to go, Netflix is my best thing.

What is something not everybody knows about you?
I am only serious for who I want to be and what I want to achieve.
On the other hand, those who think I am serious, shouldn’t know, the time I tried the 30-day weight lost diet, I lost another 30 days!
I can never stick to a diet!!!!

If you had to apply for a reality TV show what would it be?
Fear factor - Khatron ke Khiladi.

What would your last meal be?
Anything and everything that I get hand-cooked by my Mommie.

Cats or dogs?
Dogs, only to watch them play from a distance.

Sabrina Truong

Business Services Accountant

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How did you end up at Equil Advisory?
I wanted to see how people who eat unhealthy actually live.

When did you start at Equil Advisory?
Just as the second lockdown was about to begin, so I didn’t have to talk to people in person.

What do you do at Equil Advisory?
Eat raw veggies and perfect my American accent.

What do you do when you aren’t at work?
Driving around Sydney for the best fast food places.

What is something not everybody knows about you?
I eat banana bread with chopsticks.

If you had to apply for a reality TV show what would it be?
Man vs Food.

What would your last meal be?
Deep fried chicken and chips with extra chicken salt.

Cats or dogs?
Cats!

Sabrina Truong

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
My dad is a bookkeeper, so it was natural for me to choose accounting as a degree. Accounting allows me to help others grow their businesses and achieve their goals, which is something I am passionate about. I joined Equil Advisory because it is not like your typical accounting firm. I also wanted to be part of a team that is supportive and provides the opportunity for me to develop and grow my skills.

When did you start at Equil Advisory?
July 2021.

What do you do at Equil Advisory?
A large part of my role is focused on tax compliance and the other part is dedicated to building client relationships so that I can better help our clients with EA’s outsourced CFO function.

What do you do when you aren’t at work?
You would find me watching Netflix, working out, or hanging out with friends/family.

What is something not everybody knows about you?
I am learning Korean.

If you had to apply for a reality TV show what would it be?
Super Trio Game Master.

What would your last meal be?
Pepperoni Pizza.

Cats or dogs?
Dogs!

Gaurav Shrestha

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Growing up I was exposed to the business environment, so I always wondered about the ins and outs of the business, how it runs and how to be financially sound. This piqued my interest on business studies and further after that into accounting. I wanted to broaden my horizons, knowledge and have a sound work life balance which led me to Equil Advisory.

When did you start at Equil Advisory?
17th December 2021.

What do you do at Equil Advisory?
At Equil Advisory, we are exposed a range of work that include tax compliance, bookkeeping, tax advice, liaising with the clients and outsourced CFO functions. My work is predominately occupied by tax compliance and outsourced CFO function.

What do you do when you aren’t at work?
I’m mostly out with my cousins or friends. Binge watching series or may be hop online to play some games.

What is something not everybody knows about you?
I can speak four different languages and I love gaming.

If you had to apply for a reality TV show what would it be?
The Voice.

What would your last meal be?
Mo Mo.

Cats or dogs?
Dogs.

June Wong

Business Services Senior

Email Me Linkedin

How did you end up at Equil Advisory?
My sister got tired of me working from home and hence decided to join EA.

When did you start at Equil Advisory?
Just as the first lockdown was lifted.

What do you do at Equil Advisory?
Eat Coco Pops and telling people what I am honestly thinking.

What do you do when you aren’t at work?
Planning my next EA Team workout session.

What is something not everybody knows about you?
I am scared to sleep alone.

If you had to apply for a reality TV show what would it be?
Survivor – because I wouldn’t last a day.

What would your last meal be?
I can’t decide between all the YUM-MEE animals of the world.

Cats or dogs?
Porcupine.

June Wong

Business Services Senior

Email Me Linkedin

How did you end up at Equil Advisory?
I realised that a lot of people that work in chartered firms are not the happiest. Thus, I was looking for a place where I am happy to go to work every day. I think I found it at Equil.

When did you start at Equil Advisory?
May 2021.

What do you do at Equil Advisory?
Connecting with clients and providing them with all the support they need so they can be at ease and have confidence that they are well looked after.

What do you do when you aren’t at work?
Watching dramas at home while lying on bed.

What is something not everybody knows about you?
I actually thought of becoming an IT person and did a couple of months of IT degree before realising that I am not tech-savvy at all.

If you had to apply for a reality TV show what would it be?
Amazing Race.

What would your last meal be?
Hotpot with lots of veges, mushrooms and tofu!

Cats or dogs?
Neither.

Kupakwashe Doroh

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Being second fiddle to a Youtube Vlog star wasn’t cutting it.

When did you start at Equil Advisory?
I needed an excuse to not go to the gym.

What do you do at Equil Advisory?
Write short stories and make sense.

What do you do when you aren’t at work?
Personal cashflow using resources from EA.

What is something not everybody knows about you?
My hair feels like your standard carpet.

If you had to apply for a reality TV show what would it be?
House husbands of North Sydney.

What would your last meal be?
Beef or seafood.

Cats or dogs?
Cows.

Kupakwashe Doroh

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
I was looking for an opportunity to be able to grow in my accounting career. I have always had a passion for numbers, and I wanted to understand how to translate this technical knowledge into specific solutions for business growth and development. I found Equil Advisory to be a place that would nurture me into a fully-fledged Accountant by providing continuous guidance and support. I am able to learn from experienced professionals providing proactive advice and expertise to clients by creating intimate relationships. Additionally, I also wanted to be part of a diverse team from different backgrounds with different experiences.

When did you start at Equil Advisory?
September 2020.

What do you do at Equil Advisory?
My role at Equil Advisory includes a range of tax compliance work and performing our outsourced CFO function. I have been lucky to be part of the daily operations of clients’ business where we help ensure we are adding value to all aspects of their businesses and providing advice and guidance to help them grow.

What do you do when you aren’t at work?
Play basketball. watching basketball and religiously watching my favourite TV shows with the twitter community.

What is something not everybody knows about you?
I once played Football for my National team.

If you had to apply for a reality TV show what would it be?
Big Brother AU.

What would your last meal be?
Peanut butter rice, coleslaw and chicken stew.

Cats or dogs?
Dogs.