The Importance of Getting Your Financial Reporting Done Early
Now that tax time has come it is time to get your financial reporting done and dusted for the year. Often, business owners are unsure when the best time to lodge your financial reporting is. While there is no “magic” date, it is a good idea to lodge your financial reports as soon as possible.
This is especially true if you are seeking financing for your business. If you are looking to raise capital to help your business grow in 2020, whether it be to seek new equipment, cars or trucks, you need to have your financial reporting completed as soon as possible. There are many reasons to this that we will explain below.
Why reporting early is important for you
When tax time comes around and you are looking to grow your business through acquiring new assets it is important that you get your financial reporting done early. You will see benefits in your future planning surrounding the growth of your business. It will be easier to determine whether you can afford to acquire new assets, you will have a better idea on its potential profitability, and you will be able to see your business’ purchasing power.
- Determine Affordability
When your financial reporting has been completed you will be able to easily determine what you can afford. This will help you plan out how much financing you will need and how high a deposit you will be able to provide. It can also tell you how conservative you may have to be when acquiring your new assets.
- Determine profitability
By determining the impacts on your profitability that financing for the asset will hold, versus the returns gained, will help determine the path you take. Completing your financial reporting early will provide you more time to work with your accountant and broker to find the right balance, maximising the positive effects from the asset.
- Find your businesses purchasing power
Purchasing power will help determine exactly which asset you can buy. Whether you can afford that fancy Freightliner truck or need a second-hand truck instead. Handling your financial reporting early simply gives you a chance to plan with your financial broker to determine what asset your business can afford.
Why reporting early is important for your broker
Having your financial reporting done early will also help your finance broker immensely. They will be able to see your up to date financial situation to help you acquire the best financing deals for your business.
- They can see your financial situation
Your financial broker needs to know your financial situation as soon as possible to be able to help you. With that information they can help you determine what you can afford and find you a fantastic financing deal. Reporting earlier will allow your finance broker to help you faster.
- They can help you avoid overextending
The advice that your financial broker will have for you and the financing deals that they can find for you will be better suited for your business if you report your finances earlier. This will give your finance broker the most up to date information for them to advise you on before you seek financing. Your business’ finances will not be overextended, and you will receive a deal that is perfect for your business.
- Help you find out fast
With your financial reporting finished your financial broker will have access to the latest information regarding your business’ financial situation immediately. This simply allows your broker to tell you your borrowing capacity and find you a fantastic deal faster.
How to approach your accountant about reporting earlier than usual
The best way to approach your accountant is by being proactive. Get your records in place for your accountant nice and early; ring your accountant and ask them when they’ve got your work scheduled and ask if it’s possible to get it done a bit sooner than usual because your broker needs the figures for finance. Ask your accountant what you can you do to make 2019 smooth and efficient for everyone.
Make your asset acquisition process easy in 2020 by getting your financial reporting completed ASAP. Your broker will be able to better understand your financial situation, granting you better financing options faster. You will be on the road in no time, growing your business with your new assets.
To get the best financing deals for your business, call or send an email to ASA Finance Group today.