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Achieving your 2016 business goals: Are you still on track?

Achieving your 2016 business goals: Are you still on track?

Once again the year seems to be flying by. We’re already well into the new year, and there’s no sign of it slowing down.

So how are you going with your annual goals? Are you still on track.

As you can imagine it’s a busy time of year for us accountants. But I still make time to reflect on my business — how it’s performing, and what projects need completing for me to accomplish my goals.

And it’s probably a good time for you to do the same.

What do you really want? Why are you in business, working hard every day and taking risks instead of playing it safe like your friends? 

If you’re anything like me, your answer is probably freedom. The freedom of having enough money to buy nice things and share unforgettable experiences with our loved ones. And the freedom of having enough time to do what we want, when we want.

And we’re not the only ones. It’s probably the one thing all business owners have in common.

And with the year more than half gone, it’s time to take an honest look at your business and decide whether you’re still on track to reaching your longer-term goals.

Here are some questions for you:

  • How much could you sell your business for right now?
  • If a buyer come along today, what do you think you’d get for it?
  • How much could you negotiate on the price?
  • Would it be enough for you to retire on comfortably?. 

Answering these questions forces you to come up with a figure you think will give you the financial freedom you’re looking for.

So what’s your figure? A million dollars? Three million? Five million? Ten million?

Like most business owners, whatever figure you chose is probably a long way from where you are now. But that’s okay. What’s more important is coming up with a way to get there.

The best place to start is with your ‘freedom’ figure. Write it down, and then write down the major business goals that will get you there. Now, break down those big audacious goals into ones you can achieve within certain timeframes — seven years, three years, one year, 90 days and even the next seven days.

By setting up your endgame, and linking your goals for each time period to it, you map out the goals you need to achieve and the deadline for achieving them. And if you’re not achieving your goals within the timeframes, you may need to make some changes or even come up with a more realistic figure for your endgame.   

Obviously the higher the figure and the more outrageous goals you choose, the harder you’ll have to work to achieve them. But again, that’s okay. What’s important is getting into the habit of thinking where you could be in five or ten years time. Even if you manage half of what you set out to achieve,  think of the difference it would make to you and your family.

At FBZ Accounting we can create a one-page plan for your future that shows:

  • how much you think you need
  • an estimate of what you might have
  • how we can help you reach this goal.

It puts you in the driver’s seat, and gives you an idea of how things could look in the future if you make some changes now.

Ready to look forward to a better future? Get in touch with us today so we can show you what it might be like.

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Traps to avoid when investing in property to minimise your tax

Traps to avoid when investing in property to minimise your tax

Property is hot right now. Every day there seems to be a news story about the housing boom and how much property prices are increasing. And everyone—from your baby-boomer parents to the local real estate gods—keeps telling you to get into the property market before you miss out.

Unfortunately, too many investors base their choices only on what’s happening now, and ignore what will happen later on.

The average property investor is usually a high-income earner who wants to reduce the amount of tax they have to pay through negative gearing. They look for a property, buy it in their personal name and voila—they pay less tax. Mission accomplished.

But there are a lot more factors to take into account when buying a property, such as asset protection, tax planning and return on investment. But in their haste to lower their tax payable, a lot of investors either ignore these or don’t even think of them.

Which means the investor has failed to consider:

  • what the effect will be when the property becomes positively geared
  • the Capital Gains Tax that will be payable when the property is eventually sold
  • what happens if they’re involved in a civil suit (the property may be included as an asset that can be sold to pay damages).And that’s just a few examples of how focusing only on tax minimisation can result in a poor investment decision.

    Now I’m not saying negatively gearing isn’t the right approach. What I am saying is you need to consider your exit strategy before you make your decision. While your solicitor is reviewing the contracts, talk to your accountant and ask for their advice and any helpful instructions.

    The key to getting the best return on an investment property is visibility. Just as you wouldn’t start building a house without plans, you shouldn’t start investing without a roadmap.

    So if you’re thinking of buying an investment to minimise your tax, don’t forget about the end game. That way you’ll be able to profit from it both now and in the future.

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