Not sure how it works in other parts of the world. Here in the land of down under our financial year is from July to June. So, being the 2nd of July 12, it is tax time for us. Workers will most likely get a little bit of tax back, but businesses on the other hand must pay off their taxes which have accumulated in the last 12 months.
When we get into the day to day running of a business sometimes the last thing in our minds is simply – making sure we have enough cash reserve. Too many times when we look down on the dangers of not having enough cash reserve, we are caught in cash flow problems. Some of which come during tax time.
The habit of putting aside a little bit of cash is not only good for the rainy days (and tax time), but also at the same time increases our awareness of our financial conditions.
Now, there are two more things we can benefit, from this saving habits.
First, we get to accumulate cash which we can divert into investment. Properties, equities, or simply plans and equipments. Second, we get to be creative with our limited cash in our disposals. We can do things with limited cash that other people have never thought about, simply because they’ve never been in our positions. This will definitely push us further in our competitiveness in the market.
So, happy savings, build an investment portfolio, and be creative in limited cash environment.