Legitimately reduce your tax until the benefits no longer outweigh the costs. Don’t use all
your energy on reducing tax, instead focus on improving your business. Always seek advice
from your tax accountant before the end of the financial year to minimise your tax. It’s usually
too late after the year has ended.
Sometimes there is the belief by business owners that they have a tax problem when they in
fact have a cash flow problem. Work out how much tax you paid in the previous year as a
percentage of sales. If the tax paid was 10% of your sales then put 10% of your sales into a
separate account that returns high interest. If your business has had a significant increase or
decrease in its profit then adjust the percentage up or down depending on the change.
