Is the Perfect Storm Brewing for Australian Businesses?

For Australian businesses, this financial year has been a challenging one. Marked by a series of turbulent events that have intensified the normal difficulties – higher-than-normal costs, taxes, and compliance have been a challenge. However, additional pressure from an upcoming rise in the minimum wage, ongoing increases in interest rates, not to mention a recession potentially on the horizon – it seems the perfect storm is brewing.

While the economy is beyond business owners’ control, they can take measures to improve cash flow. Encouraging early payment and offering discounts reduces the need for financing. Communicating payment terms and penalties through invoices, proposals, and automated payment reminders can help avoid late payments. Utilising budgeting and forecasting software streamlines financial planning and decision-making.

Protecting against bad debtors and fraudsters is also essential. Conducting credit checks on suppliers and customers can mitigate risks. Awareness of potential supply chain disruption caused by financially unstable suppliers is crucial. Small businesses should be vigilant about fraud, as losses to scams have increased significantly. Verifying invoices and transitioning to e-Invoicing can help combat fraud.

Proactive financial management and data-driven decision-making are key for businesses to navigate economic challenges and thrive. With insight and understanding, businesses can overcome obstacles and succeed in an ever-changing business landscape.

Outsourcing is also an effective way to add flexibility to your organisation and weather the storm. To understand how SBA can support you through challenging times, speak with us today.