3 finance mistakes business owners make at the start of a new financial year
Start of a new year, start of a new you.
We’re already a few weeks into the new financial year and I have clients who are already looking towards how to improve their finance game. These are my favourite type of clients to work with- ones that start on a plan early.
As I was helping them to improve their vehicle finance structuring, they were keen to hear about mistakes to avoid doing and I was more than happy to flag to them what sort of common mistakes I’ve seen other business owners make for them to avoid. I’ve written them down here for anyone else who is curious:
Mistake 1: Waiting to upgrade your vehicle
Business owners often tell themselves that they’ll sort the ute or replace the old gear later in the year… but later never comes. Vehicle prices aren’t dropping, equipment costs are growing, and every month they delay is another one where they’re running gear that is slow or breaks down on site, killing their productivity & missing out on income because of missed appointments.
The one’s who win at life move early before things break-down. They lock in finance in July, structure it in a tax-effective manner, and spend the rest of the year focused on the work and growing their business. They go to a dealership or reach out to a lending specialist because they can’t do it all themselves.
Mistake 2: Going straight to the bank.
The bank has a one objective when they deal with you. They’re always going to sell you their products at their rates which means they’re not shopping around for you for the best ones for your business.
A lending specialist does. We go to market across a wide panel of lenders, find the best rate for you and your situation, and get it done faster with less paperwork. And it doesn’t cost you a thing because we’re paid by the lender, not you.
Mistake 3: Mixing personal and business finance
Using their personal funds for business expenses and running income through their personal account. They financed a work vehicle in their own personal name.
It all seems harmless until they’re sitting in front of an accountant trying to untangle it all with the endless question of “Is this a business or personal expense?” 100 times over, or until ATO decides to take a closer look. Early is the perfect time to clean up your structure and start the new financial year stronger.
Curious to what you could be doing wrong?
These simple fixes can make a massive difference and you can message me if you are curious of other mistakes you may be doing and let me take a look at your current setup. You can email me at vanessa@financiallyfitf.com.au or book a 30 min complimentary chat with me at https://www.tinyurl.com/financiallyfitfbookings
Don’t worry, I don’t bite.
