Financial Management is Not about Accounting and End of Year Tax Filing
– although both are relevant for your business.
It is about strategic decision making in areas of your business concerning money profits pricing costs cash flow the use of capital, income revenue expenses wages employee benefits on-costs hiring & firing retirement planning finance tax investment acquisition
Of course it is how the cost free source of funds is applied in your business that will determine the ultimate benefit – which should not be squandered.
Whichever form of tax improvement your business can obtain it should not just be looked at in terms of impact on net trading results for the year.
It should be evaluated with respect to short, medium and long term impact on the business, profits, business growth and value.
An additional source of funds such as an indefinite or even shorter term deferral of tax should be utilized within the business to produce more sales, customers, profits and business growth.
Not just added to the bottom line profits at end of year. As tax deferral can be determined during the course of business, Its ability to make money obtain finance and capital
the application of funds and credit
and everything else which influences the running of your business,
and used as a strategic finance strategy the improved cash flow should be utilized either as it occurs or as part of a broader financial management and development plan.
For instance the extra cash available can be applied towards expanding your marketing budget.
As that activity is geared to produce Sales and Profits there should be a regenerative impact on your business – which when integrated with the marketing programs compounds the benefits exponentially.
Deferred Tax is also useful in providing investment capital –
as demonstrated by George Soros and the billions of dollars of tax deferred investment profits he was able to amass with a strategy of investing deferred tax.