The Sunshine Coast is home to more than 36,000 businesses, with small business forming the lifeblood of the regional economy. Unfortunately, around 60% of small businesses in Australia fail within the first three years. There are multiple reasons for this, but some of the most common include cash flow issues, poor (or no) budgeting, and pricing or cost challenges. In addition, the ASBFEO (Australian Small Business and Family Enterprise Ombudsman) reports that 43% of micro and small companies are not profitable.
These statistics highlight how crucial robust financial management is for staying in business and succeeding. As your local specialist small business accountant, we want to help you avoid common financial pitfalls and support your long-term growth.
1. Review your financial statements regularly
We recommend reviewing your financial statements regularly. When new clients come to ABA Advice Beyond Accounting, they often tell us they spend too much time trying to understand their business finances and accounting statements. As a result, they put off regular reviews because it all feels too hard.
The reality is that regular checks of key financial indicators put you in a stronger position to understand your business’s financial status. You can identify trends early and take decisive action, rather than being surprised by a financial crisis that is harder to manage. This is also why we are committed to partnering closely with our clients to help them master their finances.
We recommend that every business owner reviews their profit and loss statement, balance sheet, and cash flow statement every month. Ideally, set aside a recurring time in your calendar when you can work with minimal interruptions—like the last Thursday afternoon of every month.
Leverage your accounting software to get an overview of your financial health at a glance. For example, in Xero you can set your dashboard up to suit your financial priorities. Read more about setting up your Xero dashboard. You can also create custom reports to show as much or as little information as you want and save the format to reuse in future. Discover how to create Xero custom reports.
Ask your accountant to explain your financial statements in plain language. Implement the review process, then share your observations with your accountant at your next meeting. They can help you stay on track and improve your interpretation of the information.
2. Understand the basics of cash flow
As a business owner, it’s important to understand there are multiple elements involved in assessing cash flow. Many business owners only review their bank balance as an indication of cash flow, and make decisions without a comprehensive view of their financial position—despite cash flow issues being one of the key reasons businesses fail.
To accurately measure your cash flow, you need to include outstanding invoices, upcoming expenses, and any other liabilities in your assessment—particularly ATO obligations as an employer and any tax liabilities—alongside your current bank balance.
In addition to having a clear view of your current position, it’s important to forecast your cash flow. This helps you anticipate how much money you will need for upcoming expenses and can help you avoid situations where you must take out emergency loans.
It’s also essential to review your accounts receivable and payable. Make sure your timelines for receiving payments remain within your acceptable limits, and pay creditors on time so you’re not under pressure to find cash at short notice. As a Director, you have a legal obligation to remain financially solvent.
3. Split business and personal finances
All too often we see business owners combining business and personal finances. We all think we will remember expenses and activities far better than we actually do. Mixing expenses also makes it difficult to get a clear picture of your cash flow, track business expenses for tax purposes, and prepare accurate financial statements. Splitting business and personal finances gives you greater clarity on your business health.
We recommend separate business and personal bank accounts, and recording business transactions regularly and accurately in your accounting software. This makes reconciling expenses and payments easier. Accounting software like Xero includes automatic reconciliation features such as Bank Rules, which can save time and reduce reconciliation errors—especially for recurring payments like rent, motor vehicle loans and subscriptions.
You work hard for your money, so it’s important to pay yourself a salary. Receiving a regular income helps keep business and personal finances separate. It’s also important when applying for finance, as you’ll need to clearly show your personal income—not only the business income. This also makes it easier to manage a personal budget, in the same way you plan for business cash flow.
4. Invest in professional advice
Most business owners are experts in their chosen field, however they don’t necessarily have extensive financial expertise. When money is tight, it can be tempting to try to save money by managing everything yourself. Unfortunately, the time this takes—and the potential errors—can cost you more in the long run.
Engaging an accountant is an investment in accelerating your financial knowledge, as well as receiving timely and accurate advice. Accountants are experts at interpreting complex financial information and can provide strategic business advice to help your business grow and operate profitably.
They can also advise on effective tax strategies that improve your tax efficiency and overall financial position. The ATO continues to crack down on non-compliance, and your accountant plays a crucial role in ensuring you meet your tax obligations.
Look for a Sunshine Coast accountant who will meet with you regularly over the financial year—someone willing to share knowledge, identify opportunities for growth, solve problems with you, and work in close partnership with you.
Don’t wait until you are struggling to manage your financial situation. It’s always harder, more time-consuming, and more costly to rectify problems. Reach out early and be on the front foot from the start.
5. Invest in tax planning and compliance
Tax compliance is another area where businesses struggle when tax planning isn’t in place. The ATO is actively pursuing business owners who are not meeting their tax obligations, and the leniency of the COVID years is over. Whether it’s GST, superannuation, PAYG or other taxes, the ATO is cracking down on tax debt. This can trigger cash flow problems if liabilities are called in and penalties applied.
In the first instance, we recommend planning for your tax liabilities. Your accountant is best placed to advise you of your tax obligations and how to minimise risk while achieving the best tax result for your circumstances.
We also recommend setting up a separate tax savings account so you have sufficient funds available when tax becomes due. If you are struggling to meet your obligations, speak to your accountant as soon as possible. They can help you set up a payment plan and work on a strategy to improve your financial position.
That said, don’t overly rely on payment plans or become complacent and let them lapse. The ATO charges interest on overdue amounts and it’s calculated daily. From 1 July 2025, you will no longer be able to claim deductions for general interest charges (GIC). Also note that if you have outstanding tax lodgements, applications for finance may be declined.
Leverage your accountant’s knowledge and expertise. Tax laws are complex, and your accountant can save you time and money while helping you stay compliant.
6. Budgeting or financial forecasting
Preparing and maintaining a budget or financial forecast is a powerful way to stay in control of your financial position. A budget helps you plan for expected expenses and revenue in future months. This clarity supports better decision-making, helps you identify positive and negative trends, and allows you to plan for risk or growth.
Your accountant can help you get your budgeting process started, and you can build on it as your confidence grows. They can help you explore different scenarios that may impact operations in the short and long term, and prepare for normal business cycles—such as quiet periods over Christmas or booms when clients spend up before the end of the financial year.
It’s important to remember budgets are not static—they’re a living document you should update as circumstances and the business environment change. For more information, read our budgeting and cash flow article.
7. Monitor specific financial metrics
Financial metrics provide specific and valuable insights into how your business is performing. They can act as an early warning system if your business is heading into difficulty—and, on the flip side, can highlight when things are going well so you can plan for growth.
Your accountant can help you identify the most important metrics for your business and industry. The most common metrics we recommend reviewing include:
- Gross profit
- Overheads (and how they’re trending)
- Outgoings that don’t show on your P&L (e.g. loan repayments)
- Break-even point
- Liquidity
- Net assets
- Budget vs actual results
In certain industries—like building and construction—governing bodies may set specific ratios and reporting requirements. In Queensland, the Queensland Building and Construction Commission (QBCC) determines the financial reporting requirements for licence holders. You can read more about these financial ratios in our articles: Demystifying QBCC Phrases and Calculations and What are the Key Financial Ratios and KPIs for Construction and Trade Businesses?
With regular review of these key metrics, you will gain valuable insights into your financial position—putting you in a stronger place to make strategic decisions and improve your business outcomes.
How ABA Advice Beyond Accounting can help you master your finances
Acting on these seven areas is key to building a thriving business and avoiding becoming another statistic. It’s easy to list what business owners should do to monitor and manage their finances, but implementation can be challenging when time and financial knowledge are limited. At ABA Advice Beyond Accounting, we are committed to guiding and coaching our clients to achieve their financial goals.
Our expert accountants in Birtinya speak your language, helping you understand each part of the process and build your financial capability—so you can master your finances and take control of your financial future.
Our service goes well beyond seeing you once a year and simply crunching numbers. We offer service packages with regular structured meetings in Birtinya or online to help you actively manage cash flow, budgets and operating costs. Our packages also remove financial barriers to advice compared to a pay-for-time model, and include access to email support so you can get accurate information in a timely manner.
We have many vibrant business communities on the Sunshine Coast, and having a trusted accountant near you can make all the difference. We cover Maroochydore, Kunda Park, Kawana, Birtinya, Caloundra, Sippy Downs, and Buderim. Don’t leave your success to chance; book a free discovery meeting to build a strong financial foundation and help your business thrive for years to come.