Cashflow - The Key To Unlock Tax Savings

By Tina Zawila

In the lead up to 30 June, we have been working with many of our clients to help them estimate their taxable income and identify strategies to minimise tax payable.  However, one common roadblock we encounter is a lack of available cash to implement those strategies effectively. 

Whether it's making additional superannuation contributions, prepaying expenses, or bringing forward purchases, many proven tax-saving options rely on timing—and cash in the bank.  But if all the business profits are tied up in debtors (customers who haven’t paid you yet), inventory or recently acquired fixed assets, the opportunity can be lost.

This is why cashflow management should be a year-round priority, not just an afterthought in June.  Converting profit to cash and understanding where it is going is essential.  Healthy profits on paper don’t necessarily translate into tax planning flexibility or financial security.  In fact, profitable businesses can, and do, go broke due to poor cashflow management.

Small business owners often focus on profit as the key measure of success. But smart business operators also track their cash position closely.  This means monitoring when money is coming in, where it’s going out, and what’s left over.  Using your bookkeeping software, bookkeeper or accountant to do regular reconciliations of bank accounts, credit cards and accounts receivable and payable, as well as working with a budget and cashflow forecast can help you stay in control.

By keeping an eye on cashflow throughout the year, you’ll be better placed to take advantage of last-minute tax strategies and avoid scrambling when the end of June rolls around. Better still, you’ll have the confidence to make informed decisions for the business—whether it's expanding, investing or reducing debt.

So let’s start the new financial year with a focus on cash to ensure we can unlock tax savings before 30 June 2026. 

As professional accountants, our job isn't just to prepare financial statements and calculate tax after the fact. It's to help you plan ahead, build wealth and reduce financial stress.  Call the team at UHY Haines Norton on 07 4972 1300 to discuss your personal situation today.