Australasian Dentist Magazine May June 2021

Category 120 Australasian Dentist FINANCE A s many practices look to see how they can close off the financial year, maximising tax liability and squeezing every payment possible into the current fiscal year, planning for the year ahead can often be overlooked. Here are Credabl’s five tips for planning the next financial year. 1. Evaluate your cash flow Faced with tightening restrictions and an unforgiving economic environment the term ‘cash is king’ has come to the fore. It is critical to ensure you have sufficient cashflow to cover your annual expenses. However, this doesn’t mean you have to have all your pennies sitting in the bank. If your money is tied up, you can consider options such as leveraging assets or arranging access to additional funds with the likes of an overdraft facility. Make sure you run your numbers “excluding” any government payments during the year in order to gauge your real performance. 2. Consider BNPL options for capital equipment Buy Now Pay Later (BNPL) is everywhere. There isn’t much for sale today that has Ready, set ... new financial year escaped this new-age payment method. In the dental space BNPL for capital equipment takes the form of a loan with no repayments for 12 months and without any additional interest – all the while having the equipment in the practice to use. Liquidity, tax deductions and the time to optimise equipment use are among the many benefits that BNPL can unlock for your practice. 3. Review your home loan One of the best ways to save yourself some cash and make sure you’re in the best financial position is to review your borrowings, especially your home loan. The market for owner occupied and investment property loans is incredibly competitive right now with interest rates at all-time lows. And while your interest rate is very important, there are a number of great reasons to consider reviewing your current facilities, which may mean changing lenders including whether or not you need access to cash, if your personal circumstances have changed or if you foresee any change in your income structure. 4. Pre-empt purchases and expenses There are still significant tax benefits with business use asset purchases. If you are considering purchasing assets for your practice such as new equipment, upgrading your practice fitout or even a new car for personal or business use, presenting this information to your accountant earlier on will give you a substantial advantage when it comes to settling your final tax bill. 5. Speak to the right professionals When dealing with a lender, it is imperative that you deal with a specialist who knows your profession and speaks your language. At Credabl most of our team have been in the industry for over 15 years and have a deep understanding of the various healthcare professions. And we aren’t the only specialists. From accountants, laywers, equipment vendors and builders – there are plenty of industry specialists that know the ins and outs of your industry and can help you along your journey. u For more information, contact Credabl today on 1300 CREDABL (1300 27 33 22) or visit www.credabl.com.au – you can even live chat with us online! PracticePurchase • CommercialProperty • GoodwillLoans • OverdraftFacilities • HomeLoans • CarLoans • Equipment&FitoutFinance • SMSFLending credabl.com.au 1300 CREDABL (1300 27 33 22) The issuer and credit provider of these products and services is Credabl Pty Ltd (ACN 615 968 100) Australian Credit Licence No. (ACL) 499547. “ “ Getting more from my finance partner, means my patients get more from me. Professional and personal finance solutions, tailored for you and turned around fast. When you partner with Credabl, you can expect all that and more. With a team of experienced finance specialists, we understand the dental sector so you can look forward to finance solutions that help you get on with business and looking after your patients. You always get more with Credabl.