Hands up if you love nothing more than sitting down with a cuppa, scotch finger, and the latest pile of catalogues for a bit of harmless window shopping. Or are you one of those conscientious houses with the “no junk mail” sign?
I’m in both boats. I’m a paperless person, and if hubby has been on shift a lot, you’ll often find a roll of catalogues wet, soggy and full of slugs on my front lawn for hubby to pick up (or trip over) #sorryhubby. But if there’s a catalogue for camping or cooking stuff, I’m all over that shit like a Tradie to a Hilux. I’ll inhale and loudly announce “Annnaaaaccccooonnnddaaa”, like they do in the ads.
But I digress…
My point is, this time every year, we’re inundated with catalogues and ads because every man and his dog is having an EOFY Sale.
Don’t get me wrong, it’s a fantastic opportunity to grab those tools you’ve been eyeing, or update the office computer at a reduced price. It can also be an excellent strategy tax wise. #taxdeductions
That is, if you have the cash flow.
But, there is this push for business owners to go out and spend money at tax time, regardless of whether the business actually needs, or can afford the new items. There’s this perception that a ‘tax deduction’ means we get the item for free… like the ATO gifts us back the entire purchase price of the new toy we’ve just purchased for our business.
If this is your train of thought, then you need to put down that Bunnings catalogue, and take a stroll to your accountant’s office for a friendly lil’ chat.
Don’t be swayed by the ads from the retail giants who are currently screaming ‘EOFY Sale’ at consumers from every direction. Make sure that anything you purchase for your business is within your budget, because my friends, cash is king, and a new iPad will not put petrol in your car next week.
Don’t take Gerry’s word on where to spend your money. He has no interest in your Profit and Loss statement, borrowing power, or the general health of your business finances. Speak to your accountant and get educated advice when making significant business purchases before dipping into the overdraft.