Is Your Business Financially Ready for Spring? A 5-Point Health Check
- Marketing Manager
- 2 days ago
- 3 min read
Updated: 11 hours ago
The days are getting longer, the weather's getting warmer, and new opportunities are blooming. As a small business owner, spring isn't just a time for a wardrobe change—it's the perfect opportunity to give your business's finances a thorough health check.
With the new financial year behind you, it’s a great time to review where you stand and set yourself up for success in the final quarter of the year. Think of this as your five-point financial fitness plan. Let's get started!
1. Audit Your Cash Flow
Cash is the lifeblood of your business. As you head into a busier quarter, it's crucial to know exactly where your money is coming from and where it's going.
Review your past quarter: Go through your records for July and August. What were your biggest expenses? Which customers paid on time, and who was late?
Create a forward-looking forecast: Look ahead to the next three months. Consider upcoming costs like seasonal inventory, marketing campaigns, or even staff Christmas parties. A simple spreadsheet can help you spot potential cash flow gaps before they become a problem.
Chase up outstanding invoices: Don’t be shy! A friendly email or phone call can make all the difference. Remember, cash is no good until it's in your bank account.
2. Tidy Up Your Post-EOFY Accounts
The end of the financial year (EOFY) can be a rush, but now's the time for some housekeeping. Your goal is to have clean, accurate records so you can make confident decisions.
Reconcile your accounts: Check your bank statements against your accounting software to ensure everything matches. This is a critical step to catch any errors or missed expenses.
Categorise expenses: Make sure all your expenses are correctly categorised. This makes it easier to analyse your spending habits and provides accurate data for tax time.
Write off bad debts: If you have invoices that are clearly unrecoverable, it's time to officially write them off. This cleans up your books and can be claimed as a deduction.
3. Review Your Pricing and Profitability
When was the last time you looked at your prices? With rising costs, it's important to ensure your prices reflect the true value of your product or service and are keeping pace with inflation.
Calculate your profit margins: Go beyond revenue and look at profitability. Which of your products or services are the most profitable? Consider if you should adjust your prices or focus more on the offerings that generate the most profit.
Check your costs: Review the costs of your suppliers and materials. A small price increase from a supplier can have a big impact on your bottom line. Look for opportunities to negotiate better deals or find new vendors.
4. Prepare for Superannuation and Tax Changes
Staying on top of your financial obligations is key to a healthy business. With new government changes, there are a few things to keep in mind for your Q4 planning.
Superannuation Guarantee (SG) increase: The SG rate increased to 12% from 1 July 2025. Make sure your payroll system is set up to calculate super at the correct rate. The ATO now also requires you to pay super on government-funded Paid Parental Leave, so double-check that your systems account for this.
No deduction for ATO interest: A significant change from 1 July 2025 is that you can no longer claim a tax deduction for interest charged by the ATO on late payments. This makes it even more important to lodge and pay your business activity statements (BAS) and other tax returns on time to avoid costly fees.
5. Set Financial Goals for Q4 and Beyond
A financial health check is only useful if it helps you plan for the future. As you head into the final quarter, set specific, measurable, and achievable financial goals.
Revenue targets: How much do you want to earn? Break this down into monthly or weekly targets to make them less daunting.
Expense budgets: Set a budget for your spending. This helps prevent overspending and ensures you're on track to hit your profit goals.
Look for new opportunities: Consider investing in new technologies like AI tools to automate tasks, which are a major business trend in 2025. If you're a not-for-profit or a business with a specific focus like Defence, you might even be eligible for government grants with upcoming closing dates in September. Check the Business.gov.au website for a grants finder tool.
By taking these five steps, you'll enter the new quarter feeling confident and prepared, ready to make the most of the opportunities that spring brings.
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