is-your-business-eofy-ready

Is Your Business EOFY Ready?

With the end of financial year (EOFY) fast approaching, it’s the perfect time for business owners to consult with their financial team regarding their fleet management and assess their equipment finance needs. With over 8 years experience in the industry, Adam Dickson, Equipment Finance National Sales Manager at BOQ Finance, is here to share some valuable information to help businesses make the right choices.

Managing Your Fleet:

Traditionally, businesses have utilised equipment finance facilities to assist with EOFY planning, both from a tax perspective and fleet management perspective. When it comes to assessing your equipment finance needs, business owners should consider the operating expenses for existing, and possibly aged assets, versus the cost of replacing them with newer models and better technology.

Operating with an aged fleet of assets comes with its own set of risks and expenses, including increased fuel costs, increased repairs and maintenance, decreased depreciation and other general asset related expenses. There are also non-financial impacts to consider, including production inefficiencies, increased down time due to equipment break down & rising staff frustration when working with aged plant & equipment, all of which can effect a business’s ability to service clients and negatively impact their cash flow and bottom line.

On the other hand, there are a number of benefits to operating with a modern asset fleet, including warranties, tax management and an overall improvement to the business’s cash flow position. Having such assets also provides a real advantage when it comes to attracting new clients, as well as retaining existing clients, as it instils confidence in your business’s ability to produce the goods or services tendered for, to a highest level of standard.

EOFY Considerations:

This EOFY is of particular interest with the Government’s accelerated depreciation offer which allows small and medium businesses to claim an immediate deduction for assets where the cost is less than $30,000 ($33,000 including GST), subject to business use. Whilst this won’t benefit all business owners depending on their plant & equipment requirements, it will provide stimulus to a number of industries and allow for consideration of investing in new or replacement assets for many businesses. We recommend that you contact your tax adviser or accountant to confirm whether you are eligible for the Government’s accelerated depreciation offer.

I expect the increase in demand that we are experiencing is also due to extended periods of low interest rates. When benefits of replacing plant & equipment include locking in a low interest rate for the term of the facility, consideration should be given to end of financial year options.

Here at BOQ, we have a number of options that can assist small business owners take advantage of the accelerated depreciation allowance and with their general EOFY equipment needs. Our Small Ticket Matrix allows businesses to finance amounts from $10,000 up to $75,000 on a wide range of equipment, with no financial statements or deposit required, and structured repayments to suit cash flow. Qualifying criteria, terms and conditions apply. Click here to find out more.

 

If you’re interested in finding out more about BOQ’s equipment finance offerings, you can do so online, on the phone, or in store with one of our business experts. We’ll guide you through the process from start to finish, and ensure you walk away with exactly what your business needs.

Ready to take the next step? Why not pop into your local BOQ branch today and chat with a member of the team?