For small business owners, July is not just the height of summer – it’s a strategic time. With five months left until the end of the tax year, it’s the perfect time to pause, take a look at the numbers, and get smart about preparing for the final stretch of the year. Many businesses tend to leave tax and filing matters until the last minute, but planning now can save you a lot of money, headaches, and tax returns later.
Planning is not a privilege – it is an existential necessity
A small business without semi-annual tax planning is like a car without a gas gauge – you never know when the road will end, when unexpected expenses will come, or what opportunities will be missed. When you don’t have control over the numbers, business decisions become intuitive instead of informed. In July, you can already look back on the first half and make critical adjustments for the future.
The reports you should open now
This is not just a technical matter – it is critical information for the proper management of the business. Among other things, it is important to go over:
- Semi-annual profit and loss report: Is profitability in line with expectations? Are there any unusual expenses?
- Balance sheet: Is the business stable in terms of liabilities versus assets?
- Cash flow report: Are there any cash flow shortfalls that may worsen later in the year?
A thorough examination of these three reports can reveal faults before they become real problems.
What to look for between the lines?
It's worth paying attention not only to what's in the reports, but also to what's missing. Have all invoices been reported? Are there any suppliers that haven't yet been entered into the system? Does the revenue include receipts that haven't yet been invoiced?
These mistakes are especially common in small businesses that operate without a strong financial control system. This is where the role of an accountant comes in, accompanying the business throughout the year, not just in December.
When to buy? When to wait?
Business owners tend to put off major purchases until the last minute – but that’s not always wise. If there’s equipment or an expense that can be made this year to benefit from tax benefits (e.g. depreciation), it’s worth considering making it immediately. On the other hand, not every purchase warrants immediate action if cash flow doesn’t allow it or if there’s uncertainty about the viability of the investment.
Tax planning is not just about reducing your payment – it’s about creating stability.
Businesses that adjust tax advances, explore loss offset options, or plan payroll deductions wisely are not only working to reduce their tax liability but to truly improve the health of their business. The trick is not to pay less at all costs – but to pay correctly and on time.
In conclusion
A small business that is run with foresight benefits not only from peace of mind – but also from informed business decisions, better financing options and a reputation with suppliers and customers. At the Saif office, we invite you to take advantage of the current period to examine the situation together, understand the implications – and arrive in December prepared.
Contact us and we will guide you through financial planning that puts you at the center.
