TAXING CHALLENGES AROUND CASH FLOW Keeping on top of tax payments can be challenging for some businesses. We look at examples of temporary issues that many businesses encounter and explore ways to overcome them.
Article by Tracy Hickman & Jessica Stewart STAPLES RODWAY AUCKLAND tracy.hickman@staplesrodway.com jessica.stewart@staplesrodway.com
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APIDLY GROWING BUSINESSES USUALLY REQUIRE greater working capital to meet the demands of increased payments to suppliers, wages, taxation and capital expenditure. If additional working capital facilities have not been put in place, we often find that IRD payments are, dangerously, given a lesser priority with business owners focussing instead on maintaining the supply of products or services and paying wages. Similarly, the cash flow for underperforming businesses usually reflects insufficient revenue generated to meet costs. Those business owners who haven’t scaled back production and overheads to match reduced demand are likely to face hard decisions around prioritising payments.