Tax and Cash Flow Planning: Your Blueprint For a Strong New Financial Year
A new tax year is a chance to strengthen your financial foundation and optimise cash flow. Smart planning now can set your business up for long-term success.
Below are some pointers on how to get tax ready, and strengthen cash flow.
1. Get Tax-Ready
Assess your tax situation. Check for upcoming tax liabilities and savings — review deductible expenses, tax bills, and opportunities to defer or prepay costs.
Keep your records in order. Well-organised invoices, expenses, and payroll records prevent last-minute headaches. If your records need work, start building better habits now to streamline future tax seasons.
Address any tax debt early. Inland Revenue is tightening compliance on undeclared income, GST, and payroll reporting. Stay ahead by reviewing your tax obligations now. If you’re struggling, we can help liaise with Inland Revenue and arrange a payment plan to get you back on track.
2. Strengthen Cash Flow
A tight cash flow strategy helps you stay resilient through economic shifts.
Forecast upcoming expenses - Identify major costs and plan your budget accordingly.
Analyse last year’s financials - Look for trends, unexpected costs, areas for improvement, and refine your plans for the year ahead.
Review pricing and margins - Are your prices still competitive and profitable? Ensure your pricing reflects rising costs, supplier pricing, and shifting customer demand.
Optimise invoicing - Consider eInvoicing to speed up payments and reduce delays, encourage prompt payment and set clear terms and automate reminders.
Build a buffer - A cash reserve can protect against slow months or surprise costs. Even setting aside a small percentage of revenue regularly can make a difference.
If you need assistance with your tax and cash flow planning, speak to the team at Kindred.Co.