Building a thriving business takes more than a one-off investment. And if you’re expanding your business by adding new vehicles or equipment into the mix, the process can be a little daunting.
At Morris Finance, we aim to streamline the business and vehicle loan process, so you can get on with business sooner.
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.
It's all about 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, the ATO provides an immediate tax deduction on capital assets worth up to $150,000. This deduction is eligible for businesses with an aggregate turnover of less than $500 million and asset must have been purchased and installed for use in the year the write-off is claimed. This incentive is valid until the 30th of June 2021.
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 kilometres your team had driven each year, there is now an easy way to keep each vehicle’s 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 a mobile phone to record when the journey begins and ends. At the end of the journey, an option to assign the trip as business or personal appears, and at a later date, this information can be exported as a PDF or Excel file to be submitted to an accountant. TripLog also allows additional back-up features to a cloud-based server for extra security, and both include being able to log fuel purchases and trips made on toll roads. Completing this process only takes a couple of minutes but the amount your company could save runs into the thousands of dollars.
Make money from maintenance
Once you’ve secured a 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 the leaders in your industry who they trust with their repairs. A personal recommendation is always the best way of ensuring you get a great service with minimal hassle. However, if you can’t find a 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. Morris Finance offer tailored finance solutions to meet your specific business needs.
If you’re in the market to take your business to the next level, talk to our experienced team today on 03 5223 3453 to get started.
It was a year defined by Covid-19, self-isolation and the resulting global recession. A pandemic that brought the global economy to its knees.Read More