contact CFL Financial

send us a message

CFL Financial client login Client Login
CFL Financial on Facebook Facebook/cfl.fp
CFL Financial location Level 9, 360 Queen Street Brisbane, QLD 4000
fax CFL Financial 07 3328 8999
phone CFL Financial 07 3328 8988
Email CFL Financial mail@cflfinancial.com.au

Don't forget your
free guides!

Retirement-in style

Retire in style checklist™

There are a few reasons why Business Owners need a Retire In Style Checklist

If you’re a successful and Motivated business owner, and want to set yourself up for retirement, this guide would be perfect for you. My clients who follow these 3 simple steps live with comfort, security and the peace of mind that financial success brings.

Retirement-prosperity-thumbnail

The Retirement Prosperity Guide™

Make sure you don’t miss out on the Retirement Prosperity Guide

If you’re a busy Professional and you feel like you’re not building your wealth fast enough and you want smarter ways to utilise your cash flow, this guide is perfect for you. Clients who have used our strategies have the peace-of-mind knowing they have a ‘game plan’ for financial abundance.

Using Your Business Like a Personal Bank? 3 Red Flags and How to Fix Them

Posted on Jan 4, 2018 by CFL

Written by Jac Gallagher from Notch Above Bookkeeping

After a good long break, I’d like to start 2018 by talking about personal budgeting. Although I deal with business finances, I can tell you that your personal budget is inextricably linked to your company’s success.

I’ve seen it happen many times in my line of work.

Time and time again, business owners make good profit and then commit the fatal mistake of spending more than what they earn. They run into tax problems with the ATO as they can’t pay their GST, PAYG and superannuation obligations. If left unchecked, it will spiral out of control until their business falls into financial ruin and their personal life in distress.

Red Flag #1: Treating the business like your personal wallet

The first common red flag is when you consistently have a debit balance loan account in your business, or what the ATO calls division 7A loan. This can happen when a business owner or shareholder, takes out money from the company for themselves without declaring it as a salary or bonus. Essentially, this amount is treated as a loan from the company to you if unpaid within a year, so your business will have a debit balance loan.

However, the ATO’s rule on division 7A loan treats this amount as “dividend” for the person who drew the money. This means you will have to pay personal tax on the amount at the end of the fiscal year. Therefore, you shouldn’t treat your business like a personal bank because you can’t run away from paying taxes.

Red Flag #2: Always scrambling to pay your debts

The second red flag is when you’re constantly struggling to pay all your bills and tax obligations. It’s the stuff of nightmare for business owners to get slapped with a huge tax bill. If you’re always using credit to pay the ATO or your personal expenses, then you will eventually run out of resources for money.

Red Flag #3: Your savings are depleting

Having a substantial amount in savings is important to your personal wellbeing. If you’re constantly breaking your piggy bank or have zero amount allocated for savings, then you need a huge reality check.

The  follow up to this article we will explain how to take control of this situation and regain your financial power, it’s called “Understand & manage your personal cashflow to control your financial destiny”.

Download Your Free Guides Here
(Mouse over the image to find out more!)

Retirement-in style

Retire in style checklist™

There are a few reasons why Business Owners need a Retire In Style Checklist

If you’re a successful and Motivated business owner, and want to set yourself up for retirement, this guide would be perfect for you. My clients who follow these 3 simple steps live with comfort, security and the peace of mind that financial success brings.

Retirement-prosperity-thumbnail

The Retirement Prosperity Guide™

Make sure you don’t miss out on the Retirement Prosperity Guide

If you’re a busy Professional and you feel like you’re not building your wealth fast enough and you want smarter ways to utilise your cash flow, this guide is perfect for you. Clients who have used our strategies have the peace-of-mind knowing they have a ‘game plan’ for financial abundance.

Schedule An Appointment With Us

contact us

Email:
Phone: 07 3328 8988
Fax: 07 3328 8999

Office Location:
Level 9, 360 Queen Street
Brisbane
QLD 4000

Postal Address:
GPO Box 2468,
Brisbane,
QLD, 4001

send us a message

  • This field is for validation purposes and should be left unchanged.

Pin It on Pinterest

Share This

Share this post with your friends!