Bextacy Blog

A new bank manager had just taken over and asked for a statement of position. After doing some quick look number crunching, the manager promptly informed Bill that because he had such substantial assets and, with proper management, would not have to borrow small amounts like $60,000! He pointed out the fact that equipment depreciates and it would be better to lease it to Debt Litigation. This bloke now owns a hotel worth more than $8m! Leasing should produce a better bottom line and better cash flow. Remember, your failure to manage debt properly is the prominent reason for business litigation. You can have an extremely profitable business and still be brought to a standstill by cash flow problems. Cash flow must be treated as a priority and you will need to work with both your accountant and your bank to manage this incredibly important area of avoiding debt litigation. Are you flying by the seat of your pants when time comes to work out tax deductions? Ignorance of the law can leave you with hefty accounting and legal bills – as well as a large tax bill. For both simple and easy business transactions, the Australian Tax Office (ATO) has booklets laying out what can and cannot be claimed.