The end of financial year can be a testing time for any business filled with sales, stocktake and completing accounts, all too often left to the last minute to make the June 30 cut-off.
For small to medium-sized businesses this can be a busy time particularly, with fewer resources and limited support often making it feel like all the responsibility is on your shoulders. Though we all read about tax tips from seasoned experts and accountancy firms offering invaluable advice, many aren’t aware of the benefits and additional support that alternative trading solutions can offer to smaller business-owners at tax time. The following tips highlight some of these benefits that can be applied to a business in virtually any industry.
Reduce your taxable income
By paying any outstanding invoices or stocking up on essential items like equipment and stationery before June 30, you can reduce your taxable income by bringing forward tax-deductable items to this financial year. Not using your cash flow to purchase essential products and services is an added benefit, letting you claim the tax-deductable depreciation from the price tag while conserving your cash flow to spend where you choose. Businesses within Bartercard have this option with a diverse mix of products and services readily available to them using Trade Dollars instead of cash – creating significant savings. A snap shot of these services includes 500 advertising and media companies, more than 180 professionals including accountants, bookkeepers and legal firms, 300 printers and 200 graphic designers.
Reduce excess stock
For retailers a stocktake is the best way to write off any lost, damaged or outdated stock to reduce taxable income, and a stocktake sale is an effective way to sell off stock from previous seasons to make the task easier. Almost all well-known retailers hold stocktake sales before the end of financial year that attract a loyal customer following, but drawing the crowds for smaller businesses with less-lucrative advertising budgets can be less effective. Instead of solely relying on discounting to shift stock, smaller businesses owners have the option to sell through Bartercard, with the ongoing support of account managers around the country to move stock quickly through a diverse choice of advertising channels. This can be an added tool to reducing excess stock in the lead up to tax time.
Clear outstanding debt
For businesses who continue to face outstanding payment without resolve, writing off bad debt before June 30 can let them claim it as a tax deduction. However you can collect outstanding debt more easily during any time of year through the support of Bartercard that enables business owners to accept products in place of cash. Products can then be moved quickly and effectively through the closed Bartercard network of 20,000 businesses therefore achieving a realised value and clearing a longstanding debt from the books.
Like cash transactions, barter sales are taxable, and business owners are obligated to report them to the appropriate taxation authorities. Bartercard is not a tax agent and recommends that each business consults with their tax agents before following any advice.
By Bartercard Founder and CEO Brian Hall
For more information visit www.bartercard.com.au.