So much has happened over the past few months that wrapping your head around it all can get difficult, especially if you are running a business. If you’re in a bit of a bother because of the current state of the world and the economy that doesn’t quite make sense right now, don’t feel alone: there are many others just like you who wish there was more stability and clarity.
One way to combat volatility is through a good financial strategy. We believe that because of all the changes and uncertainty, businesses all around South Africa must take time to deliberate new strategies for financial management that will keep them going strong despite the uncertainty surrounding us.
Let’s have a look at some big things that may have impacted your financial position in the past few months:
Company tax has gone down by 1% (from 28% to 27%) – During the 2022 Budget Speech, some good news was delivered to business owners, effective for tax years ending on or after 31 March 2023. While the tax rate decrease may seem small, it has the potential to make a big difference. Reinvesting would-be-tax into new avenues must be done strategically to ensure the best results.
Fuel prices have gone up – There is a compound effect at play in the price of fuel, which affects all businesses who rely on some kind of transport (whether of goods or people). Some contributing factors include conflicts in oil-rich areas around the world, the ZAR/USD exchange rate, and global instability due to the Covid-19 pandemic. Reassessing your financial strategy could be the key to continuing operations.
Talent acquisition – The unemployment rate and education rate in South Africa have been worrying for years. For this reason, many businesses are struggling to attract high-calibre employees, while many recent graduates have had to spend the vast majority of their undergraduate studies behind a computer screen, which has been proven to be a sub-optimal environment – especially considering the limited access to resources such as internet and adequate computers at home. In conjunction with a recent global increase in resignations of skilled workers from the traditional workplace, it is easy to see how recruiting concerns can have a big impact on a business’s bottom line.
Finleys is dedicated to helping businesses like yours continue to grow. We do this by helping you reach a “Goldilocks Zone” where your business structure and operations work together optimally, so that you can arrive at a financial position that ensures your prosperity.
Don’t let current concerns bring you down. Allow us to help you take advantage of your lower tax rate, find new ways to ensure fuel prices don’t cause stagnation, and help you recruit the best talent in a competitive job market.
Let us consult you on how you can make small improvements to achieve big results. Change up the way you run your business and order your tax, so that you can make the best use of your finances. A better financial situation is just a click away.
Please note that these articles are to be considered general information sheets only and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information therein. Always contact one of your Finleys advisors for specific and detailed advice. Errors and omissions excepted (E&OE).