I’m making good money and have to pay all this tax, how come I don’t have any money in the bank?
It is not uncommon for small business to experience cash flow problems.
A good profit in your financial statements doesn’t always lead to an increasing bank balance.
Investment in equipment, PAYG instalments based on a boom year, not putting away money to cover tax as you go in the early years and increased personal expenses can all lead to cash flow problems.
We like to ensure our clients don’t just sign the tax return they also understand the financial statements, so questions like this are answered.