B2Bpay’s Jane Grant argues Australian SMEs are missing a simple shift: treating everyday business spending as an asset, not just a cost.
For most SMEs, every dollar spent is scrutinised. Owners negotiate with suppliers, review subscriptions, compare insurance policies and look for ways to trim unnecessary costs. In an environment where margins are under pressure, controlling expenditure has become second nature.
This focus is hardly surprising, with the NAB 2025 SME Survey finding that cash flow is the number one concern keeping Australian SME owners awake at night. Almost half ranked it among their top three business challenges in 2025, alongside profitability and inflation.
But what if the conversation shifted from simply reducing business costs to generating more value from the money already leaving the business?
It’s an idea I believe more SMEs should be considering: treating business spending as an asset rather than just an expense. Traditionally, businesses have focused on growing revenue and lowering costs as the primary drivers of profitability. While both remain critical, there’s a third opportunity that is often overlooked, which is improving the return generated from everyday business spending.
Introducing the concept of ‘return on spend’
Consumers have long embraced this mindset. Many people deliberately choose payment methods that reward them with airline points, cashback or other benefits on everyday purchases. Yet, when it comes to business spending, many organisations continue to view payments as little more than an administrative necessity.
The reality is that every supplier payment, software subscription, travel booking or inventory purchase represents an opportunity to create additional value.
This is where the concept of “return on spend” comes into play. Rather than asking, “how can we spend less?” businesses should be asking, “how can we get more from the money we’re already spending?”
In Australia, 89% of SMEs reported increased business costs in the past year, with utility bills, supplier costs and staff expenses driving an average 10% rise, yet 91% are still prioritising non-capital operational spending for FY2025–26. When that level of ongoing expenditure is inevitable, the way it is paid can make a meaningful difference to overall returns.
Making your cash flow work harder
For SMEs, one of the most immediate opportunities is improving cash flow. Extending payment cycles, where appropriate, can provide businesses with additional breathing room between paying suppliers and receiving customer income. Even an extra few weeks can make a meaningful difference, particularly for businesses managing seasonal demand, investing in growth or navigating unexpected expenses.
Equally important is ensuring business spending is working harder through rewards and incentives. Whether that’s earning points on eligible business purchases or accessing benefits linked to payment activity, these incremental gains can accumulate over time without requiring additional expenditure,
While none of these strategies will transform a business overnight, together they can create meaningful value from spending that would have occurred regardless.
Reducing complexities creates value too
Another area often underestimated is payment complexity.
Many SMEs rely on a mix of manual bank transfers, direct debits, credit cards and multiple supplier payment processes. As businesses grow, these fragmented systems become increasingly time-consuming, creating unnecessary administrative work and reducing visibility over cash flow.
Consolidating payment workflows doesn’t just improve operational efficiency. It provides business owners with a clearer understanding of where money is being spent, simplifies reconciliation and reduces the manual effort required to manage day-to-day finance. Better visibility also supports stronger financial decision-making, helping businesses identify trends, forecast more accurately and respond more quickly when conditions change.
A 2025 survey by OFX found that around 80% of Australian SMEs are still using manual processes for at least some financial management tasks, highlighting how much room there is to streamline.
A competitive advantage hiding in plain sight
For SMEs, every advantage matters. In today’s economic climate, businesses are being asked to do more with less, making it increasingly important to maximise every available opportunity.
Cost control will always have its place. But the businesses that thrive are often those that look beyond simply cutting expenses and instead focus on extracting greater value from the resources they already have.
Business spending shouldn’t be viewed as money that’s simply gone. With the right approach, it can become another lever for improving cash flow, increasing efficiency and supporting long-term growth.
When businesses start thinking about return on spend alongside return on investment, everyday expenditure becomes more than just a cost of doing business. It becomes a strategic asset capable of delivering value well beyond the original transaction.
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