Who said tax time was boring? These ASX stocks are set to get a kick out of it – again
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This week is the last chance for Australian taxpayers to submit their tax returns and a handful of ASX stocks can help with tax time.
The majority of these are accounting stocks which can help providing a picture of your personal finances.
Xero (ASX:XRO) is the largest company on the ASX, with a market capitalisation of over $22 billion.
Although it is gradually branching out into other services for businesses, its traditional accounting and payroll software has helped it grow to where it is today.
Businesses which use Xero can streamline data straight to the ATO and the integration of data to Xero is just what makes tax time easy for many Australians, by having people’s employment earnings already pre-filled before people start their tax returns.
Reckon, similar to Xero, has cloud accounting software and also offers legal services. It made a $5.4 million profit in FY21.
IODM meanwhile has a niche focus in helping businesses manage their accounts receivables. It has a major partnership with payments transfer service Western Union which enables Western Union to provide IODM’s platform to its own clients.
Similar to Xero, IODM has notched up substantial growth in recent years, trading at 2 cents in late 2016 but sitting at 35 cents today.
This represents a gain of over 1,600% which is actually double that of Xero in the same time period.
While all three of those stocks have been listed on the ASX for several years, there are a couple of newcomers that could benefit from tax time.
One is fintech Propell (ASX:PHL) – a cash-flow solution focused on SMEs offering forecasting tools, credit options and instant invoice payment solutions.
Another is QuickFee (ASX:QFE) which acts as payment intermediary for services firms in the legal and accounting professions.
It offers an online portal that allows customers to pay when and how they want, reducing the lag times on late payments and smoothing out cashflows for the service providers.
If you need to pay a tax bill, financiers Earlypay (ASX: EPY), FSA Group (ASX:FSA) and Pioneer Credit (ASX:PNC) are among those firms that could help you.