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Liquidity or Tax Saving
Which is best for a company owner?
Recently, I worked on a file where a business owner could save $450,000 in taxes.
But in the letter, she explained that she didn’t want to lose liquidity in her business.
In accounting, we know what liquidity means.
So, before making a decision, a business owner must ask some questions:
How much cash do you currently have on hand?
Do I have enough cash to run my day-to-day business operations?
Can I pay my loan instalments and interest on time?
As a bookkeeper, I want to ask you:
What financial problems are you facing in your business?
#prepareplan #management
Great point! Saving on taxes is important, but not at the cost of running out of cash for daily operations. The best decisions come from balancing tax efficiency with healthy cash flow.
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