Tax planning has been around for a long time amongst accountants, as a tool to put businesses in the best possible financial position prior to the end of the financial year, but for one reason or another it is rarely offered to small businesses. We see tax planning as an essential tool for our business clients. It provides them with huge benefits and honestly, we love doing it, as it is the strategic side of business accounting; making money work for our clients.
One of our fairly new clients took up our tax planning service and managed to get some great outcomes for his family and business. Will Hancock is the Director of WPH Plumbing, his own Plumbing business.
Will’s a great guy. He’s got a young family man who knew he would end up owning his own business one day. He’d been compelled all his life and after years of helping others work towards their vision, he finally took the plunge last year and started WPH Plumbing.
When Will and his wife Libby came along to our tax planning session, we talked about what the likely estimated group taxable income was likely to be and we laid out 4 or 5 scenarios that they could choose to reduce their tax.
They were looking at a tax payable bill of around $25,000 at the beginning of the tax planning session, but they were able to reduce it to $6,000, put money in their superannuation account and have Will enroll to complete the course required to get his gas fitters license, both great investment areas and all strategies identified through the tax planning process.
Will had never experienced this before, he said “basically with my old accountant, I had to think of the possible problems to arrive at questions to ask my accountant, there was no pro-active accounting offered at all and I knew nothing about accounting so I was pretty lost. As you can imagine Libby and I are really stoked with the results that Mark has been able to get for us. We’ve invested our money where it will make more money for us and reduced our tax bill. We’ve also got plans in place to bigger machinery next year, which will also help with reducing our tax bill. We totally recommend Mark, Trak Accountants and their tax planning service to any business operator.”
I have personally used Will for my plumbing needs both at our home and commercial site. What impresses me most about Will and WPH Plumbing is the enormous effort they put in to ensure we didn’t suffer from the plumbing issues. Will got out here as fast as he could and got his team on the job ASAP to ensure we could go on, business as usual. That was a huge relief!
You can contact Will at WPH Plumbing on 0414 440 509.
This is just one great example of how you can harness the benefits of tax planning. We also have other levers that we can use to reduce tax payable, such as distributing profits to reflect the commercial reality.Come and chat to us anytime. We offer a free half hour consultation to new clients so you can come in and see if we can help you.