PKF Carr & Stanton, Hastings, New Zealand
15 Mar 2017
Typically, this is the time of the year when businesses have terminal tax payments falling due (largely February or April depending on your circumstances), along with the final instalment of 2017 provisional tax for March balance dates due in May, the financial year end can put a lot of pressure on a business’s cashflow.
While many of our clients undertake some form of cashflow forecasting, many businesses are still failing to accurately account for their tax liability payments, resulting in a nasty surprise when they finalise their tax position.
It is not uncommon that businesses find themselves in this unfortunate position if they:
Businesses that cannot meet their payment obligations will also have to contend with interest and potentially late payment penalties. Not only does this cut cash flow, it can also likely hurt their reputation with IRD, and their suppliers who now find that they are getting paid a little later than usual.
Accurate tax planning is critical from more than just a business’s cash-flow perspective and our team work with many pro-active business owners to look at their tax liabilities within a broader context of business planning. If you are experiencing these cash-flow challenges and would like to take control, call our office for a meeting with our tax team.
Article by Michael Jackson, PKF Carr & Stanton Director
For more information on how our services can help your business get in touch.