Our new Tax Money calculator is designed to help your small business clients keep a real-time estimate of future BAS, income tax and payroll related payments.
Identifying these amounts at their taxing point will help clients avoid spending funds that aren’t truly available. And, they could be “parked” in a separate high-interest savings account, or even a mortgage offset account in the case of a sole trader with a mortgage, until the payment is due.
Cashflow is the lifeblood of any business and tax payments are a significant part of cashflow. A recent CreditorWatch analysis revealed that 33% of businesses (1,715 out of 5,097) with tax debts over $100,000 had become insolvent or voluntarily closed over the previous 12 months.
Many small business clients lack the necessary resources, time or know-how to project their future tax payments and need your help.
If you already do the client’s bookkeeping, then using this calculator would fit in nicely with your services. Othewise the client could feed you the information on a regular basis or you could set up the calculator with opening balances and give it to the client for data entry.
These would be the ideal client types who would benefit from having their tax payments managed –
- New businesses without a PAYG instalment rate.
- Growing businesses.
- Clients who generally struggle to meet their ongoing tax obligations.
This is the process followed by the calculator in tracking tax payments –
- Enter Opening Balances of unpaid amounts at the start date.
- Enter summarised transactions from the start date to produce Estimates
- Enter Actuals when the forms are prepared and they replace the Estimates
- Enter Payments when made and the balance of “Tax Money” is calculated to compare with available funds.
Find it at Calculations/Budgets & Projections/Tax Money