Building a dream takes more than a one-off investment. And if backing your business means adding new vehicles or equipment into the mix, the process can be a little daunting.
Building a dream takes more than a one-off investment. And if backing your business means adding new vehicles or equipment into the mix, the process can be a little daunting. At Morris Finance, our goal is to streamline the business and vehicle loan process, so that getting started on your big ideas is made easy.
Here are our favourite pointers to help you get the most out of your money when you’re considering purchasing or hiring business vehicles, machinery or equipment...
Perfect price, perfect timing
No matter what industry you’re in, the best time to make a significant financial purchase is either in the months leading up to the end of the financial year, or just after it. Timing in business is crucial and positioning your decisions before the year ends, or as it begins, means that you have a clear idea of what you can reliably afford moving forward.
Alternatively, you can take advantage of the financial incentives the tax department and many vehicle manufacturers offer.
If your vehicle or machinery is installed and running as part of your business operations before 30 June, 2018, the Australian Tax Office provides an immediate tax deduction on capital assets worth up to $20,000. This deduction is eligible for businesses earning under $2 million each year, however, this it will be under review after 30 June, 2018. It may not be available in the 2018/2019 financial year.
Travel time is money
For every business that relies on a vehicle as part of their daily operations, claiming the cost of running a vehicle is a no-brainer.
While in the past it may have taken a manual logbook and a box of receipts to keep track of how many kilometers you had driven each year, there is now an easy way to keep your details up-to-date. The two mobile applications—TripLog and Everlance—are available for both iOS and Android phones and streamline the tracking of business trips with the touch of a button. They work by using the GPS on your mobile phone to record when your journey begins and ends. At the end of your journey, they ask you to punch in whether the trip was for business or personal use, and at a later date, this information can be exported as a PDF or Excel file to be submitted to your accountant. TripLog also allows you to back-up your journeys to a cloud-based server for extra security, and both apps offer an additional feature of being able to log fuel purchases and trips made on toll roads. Completing this process only takes a couple of minutes and the amount you could save runs into the thousands of dollars.
Make money from maintenance
Once you’ve secured your business vehicle, don’t lose money on the ongoing costs of maintaining it. For vehicles that have been purchased outright or leased, the cost of repairs, new parts, or insurance are able to be claimed back as long as the repairs weren’t made immediately after the purchase. If you’ve leased a vehicle, the amount of interest you pay on that lease is able to be deducted at the end of each financial year.
The most difficult part of having repairs done is finding someone reliable and reputable to carry them out. When it comes to having repairs or maintenance done on capital assets, there are a few simple ways to safeguard yourself against being ripped off. Firstly, ask other businesses in your industry if they have anyone they trust with their repairs. Word of mouth and personal recommendations are the best way of ensuring you get a great service. If your personal network doesn’t have the right recommendation to suit your budget or your asset type, make sure to do due diligence on the companies you approach and ask for written quotes for proof that they are licensed to carry out the repair work, and that they have the correct insurance for their industry (i.e. public liability insurance).
Though purchasing or leasing a business vehicle can seem daunting, having a reputable provider makes all the difference. By offering streamline finance options, our loans can be approved with straightforward processes.
If you’re in the market to take your business to the next level, contact the Morris Finance team to get started.