Let’s Talk: The money mistakes that are quietly killing small business profits

Small business owners face real financial pressure. This week’s Let’s Talk brings together experienced finance professionals to answer the questions keeping business leaders awake at night.

What are the biggest money mistakes? How do successful businesses avoid them? And what should you be doing differently right now?

Lynne Walton, Founder and CEO, Access Intell

“Small businesses are often hungry and eager for sales. In the quest for sales growth, a common pitfall of B2B businesses is taking on a new customer under credit terms without assessing the financial risk. This leaves the business open to financial loss, from late payment through to customer insolvency. The potential impact on cashflow for a small business is huge. 

To combat this, it’s incredibly important to know the creditworthiness of your potential customer. Whilst there is a lot of information out there from multiple sources, small businesses don’t have the time to sift through it looking for red flags. Tools to automate the credit assessment and decisioning process, like the Access Intell software, reduce risk and create a fast, easy process. All the creditworthiness information is collated into one place, such as ASIC updates, court actions, ATO business tax debt defaults, credit scores and more. You can even customise a decision workflow, to approve or decline a customer, based on your risk appetite. 

The most important thing is to have that credit assessment information in the first place, to really know the full story of the sale.”

Suzi Dafnis, CEO of HerBusiness and Host of the HerBusiness Podcast

“After working with business owners for 30 years, it’s always one of these three pitfalls: 

1. You’ve built a business that relies too heavily on YOU. When revenue depends on your personal time, energy, and capacity… it creates a fragile financial model. Which means you are one illness, one holiday, or one busy season away from cash-flow stress.
2. You’re using “hope-based” financial management. I did this for a long time, too. Avoiding your numbers because they are overwhelming, confronting, or confusing… you’re flying blind. And while it’s easier in-the-moment, it will create inconsistent cash flow, underpricing, and missed opportunities. 
3. Last? You’re operating without a clear revenue and profit strategy. Everything in your business — from your marketing campaigns, your offers, your launches — they should connect. Everything is ONE system that branches from your revenue and profit strategy. 

The solution? Build sustainable revenue systems:

• Pricing based on value.
• Creating leveraged offers that reduce dependence on 1:1 work.
• Establishing consistent marketing and sales rhythms.
• Tracking a small set of key financial indicators weekly.
• Planning revenue intentionally rather than reacting month to month.

Your goal is to move from ad-hoc to strategic. 

That’s when you’ll begin to see your business working FOR you.”

Siobhan Hennessy, Partner at McGrathNicol

“From 1 July 2026, employers must pay the superannuation guarantee (SG) at the same time as salary and wages, ensuring payments reach all employees’super funds within seven days of payday. This change may require significant updates to payroll systems and processes. Regardless of business size, employers require accurate, up-to-date records of all employees’ superannuation funds, including correct spelling of names, dates of birth, and TFNs. Any errors or ‘rejected’ contributions could result in an SG shortfall and trigger a Super Guarantee Charge. Employers are encouraged to review and update their procedures promptly to comply with these new requirements, or they can expect potential penalties in the year ahead.”

Michelle Solomon, Global Head of Corporate Services, Polyglot Group

“Small businesses in Australia often face financial hurdles that can stall growth and even threaten survival. One of the biggest culprits? Poor cash flow management. Even profitable businesses can run into trouble if cash isn’t flowing when it should. The fix? Keep a close eye on cash flow weekly, invoice promptly, and build a reserve for leaner months.

Another common trap is underestimating tax obligations; think GST, PAYG, and superannuation. Miss these and you’re looking at penalties and compliance headaches. The smart move would be to set aside funds regularly and lean on accounting software or professional advice to stay ahead. Mixing personal and business finances is another recipe for confusion. It complicates tax reporting and clouds your financial picture. Opening a dedicated business account and credit card is a simple way to keep things clean.

And don’t skip those regular financial check-ins. Monthly Profit & Loss reviews aren’t just admin—they reveal trends and help you make better decisions. Routine reviews mean better forecasting and stronger profitability.

Finally, failing to plan for the unexpected can leave you exposed. Emergencies happen. That’s why disciplined budgeting, keeping up with regulatory changes, smart tech investments, and strong financial buffers are key to long-term resilience.”

Laura Hill, MD at Sendle

“For small business owners, keeping a dozen plates spinning is standard practice, but the most fragile one is almost always cash flow because of its unpredictability. The real danger often isn’t just one big mistake, but a slow leak of unforeseen costs over time.

“A common financial trap is simply not knowing your true operational costs. Whether it’s rising banking fees, tax obligations, or complex logistics surcharges, business owners rarely have time to decipher the fine print. So, my advice to SMBs is to seek out transparency from their suppliers and key partners as a first step to avoid surprises on the balance sheet.

“SMBs should also not let shipping costs risk the final sale, especially as shoppers intently await discounts during the peak sales season. Delivery costs are a top factor in cart abandonment, so ensure your shipping strategy is competitive enough to convert browsers into buyers. 

“Ultimately, cost awareness strategies are an essential pillar of any growth strategy. By building efficient, transparent processes into your model now, you can protect your profitability and position your business to win in 2026.”

Sterling Cincotta, Entrepreneur, Founder and Host of Striking Gold Podcast

“One of the most common financial pitfalls I see small businesses fall into is building on shaky foundations. I’ve lived this myself and seen it happen to the various businesses I’ve worked with. When you’re growing fast or juggling everything on your own, it’s easy to lose visibility over your numbers, take on too much, or make decisions based on emotion instead of data. That’s when cracks start to show in cash flow, in margins, and eventually in the bigger picture.

The way to avoid it is by getting brutally honest about where your business really stands. Put proper systems in place early. Know your costs, know your risks, and review your financials consistently, not just when things feel like they’re slipping. When you’ve got clarity and structure, you make better decisions, you stay ahead of problems and you give yourself the chance to grow with confidence rather than chaos.

I’ve been on both sides – the successes and the rock bottoms – and the lesson is always the same: you can’t scale anything sustainably without discipline, visibility and a solid financial model behind you.”

Fleur Allen, Coach & Business Mentor, Ask Fleur

“Financial success is built on consistency, clarity, and preparation. Business owners can strengthen their financial foundation and avoid common pitfalls through the following tips and in partnership with professionals such as a trusted Accountant, Bookkeeper and Business Coach or Mentor:

1. Track your money regularly. Create a simple system to record income and expenses each week. This habit builds awareness and helps you make informed decisions quickly.
2. Prepare for tax and GST in advance. Treat every payment received as shared between you and the ATO. Transfer a set percentage into a separate account so those funds are ready when needed.
3. Plan for the quieter seasons. Anticipate periods of lower income by setting aside reserves or diversifying your revenue streams. This ensures you can keep operating with confidence and calm.

Financial well-being is an ongoing practice, not a one-off task. When you plan with purpose, your business becomes more resilient and sustainable.”

Masseh Haidary, Oceania CEO, Global Payments

“For many SMBs, payment providers accumulate gradually – one for online transactions, another for point-of-sale, another for recurring billing. According to the Ezidebit 2025 Payment Pulse, the average Australian SMB now manages 3.5 payment methods across more than two providers, creating an administrative drain that consumes over 22 hours a week. 

Multiple providers mean multiple dashboards, settlement schedules and fee structures, which increases the risk of errors and cash-flow blind spots. It also makes late or missing payments harder to track, an issue reported by more than half of SMBs surveyed. As digital payment volumes continue to grow, this complexity becomes a direct barrier to efficiency and scalability.

This is why 2026 should be a turning point. Consolidating onto fewer, more integrated payment providers can reclaim significant time, reduce reconciliation friction and provide clearer visibility over revenue. The process starts with a straightforward audit: list every provider, identify overlaps and pinpoint the areas where delays occur. From there, select a provider capable of covering core needs end-to-end while integrating with existing accounting and banking systems.”

Kumar Mitra, Executive Director, CAP & ANZ, Lenovo Infrastructure Solutions Group

“Every business, whether a fast-growing startup or a longstanding enterprise, will face fiscal pressures at some point. These challenges are inevitable in any growth journey. What separates resilient organisations, however, is how quickly and intelligently they course-correct.

Across Lenovo’s work with customers in diverse industries, we have seen a few patterns consistently determine whether organisations emerge stronger:

• Technology decisions that do not scale – Organisations often stay locked into legacy systems that slow them down, or they invest in new technology without a clear view of operational fit. A regular audit of infrastructure, with attention to interoperability and long-term scalability, can prevent costly inefficiencies later.
• Gaps in cyber readiness – As digital operations grow, cyber incidents are becoming more frequent and costly. The Australian Signals Directorate reports that cybercrime cost small businesses an average of 56,600 dollars per incident last year. Strengthening basic cyber hygiene, including identity management, authentication, and intelligent threat detection, is often the most cost-effective safeguard.
• Misjudged operational costs – Financial strain often arises not from large investments but from underestimated day-to-day expenses. Businesses that maintain disciplined cost visibility, scenario planning, and buffer capacity are better positioned to absorb unexpected shocks.

Ultimately, building a sustainable business is not about adding complexity. It is about making informed decisions early, choosing the right infrastructure, anticipating risks, and maintaining clarity on costs. With the right foundations, organisations can navigate uncertainty with confidence and focus on growth.”

Alex Molloy, Co-founder and CEO, Valiant Finance

“After facilitating over $2.5 billion in business loans for more than 20,000 Australian SMEs, we’ve seen these common financial pitfalls trip up even the smartest operators.

• Cash flow mismanagement – Revenue doesn’t equal cash in the bank. The gap between invoicing and payment can sink an otherwise profitable business. Track your actual cash position weekly, not just your P&L, and build a buffer for seasonal fluctuations or unexpected expenses.
• Ignoring ATO debt – Many businesses treat tax debt as a convenient line of credit, but this strategy is expensive. As of 1 July 2025, the General Interest Charge on tax debt is no longer tax deductible, effectively increasing the real cost by 25% for most businesses. At 11.17% compounding daily, a $50,000 tax debt now costs you the full amount with no tax relief, that’s over $5,500 annually. Address tax debt proactively before it damages both your cash flow and your ability to secure future financing.
• Choosing the wrong finance – Not all business loans suit all situations. Taking what you can get rather than what you need leads to expensive mistakes. Consider loan structure, repayment terms, and how they align with your actual cash flow, not just the interest rate.”

Greg Wilkes, CEO of Develop Coaching

“Healthy finances rarely fall apart in one dramatic moment. For most small businesses, trouble creeps in quietly: a late invoice here, an unplanned spend there, and suddenly the numbers stop making sense.

One of the biggest pitfalls is poor cashflow visibility. Too many business owners rely on bank balance guessing rather than a forward view. According to accounting advisers, maintaining a rolling 13-week cashflow forecast is one of the simplest ways to spot problems early and prevent crunch moments.

Another common issue is blending personal and business spending. Experts warn that this not only complicates tax reporting but hides the true cost of running the business. Clear separation of accounts and a consistent bookkeeping routine can eliminate the confusion.

Small businesses also fall into the trap of under-pricing. In the early stages, owners often set prices emotionally rather than based on cost analysis. Financial consultants recommend building prices from the ground up: labour, overheads, materials, and a margin that supports sustainable growth.

Finally, many firms fail to plan for tax liabilities, treating VAT, PAYG or corporation tax as a future problem. Setting aside funds monthly creates predictability and avoids the cash shocks that derail so many young businesses.

Good financial habits don’t just prevent problems, they create the stability needed for long-term growth.”

Sean Dunne, Owner | Founder, Dominium Capital

“Small business owners often have the drive and expertise to deliver an exceptional product or service – but many fall into financial traps that quietly erode wealth, increase stress, and limit long-term choices. These pitfalls are rarely accounting issues alone; they are strategic and behavioural challenges that can be avoided with the right advice and forward planning.

1. No Clear Cashflow Framework
   Many owners operate reactively rather than strategically. Cashflow is managed week-to-week, with no structured budgeting, forecasting, or profit-allocation process. The result is inconsistent personal income, difficulty absorbing shocks, and a feeling of “always chasing your tail.”
2. Blurring Business and Personal Finances
   Using the business like an ATM – or carrying personal expenses through the business – creates tax inefficiency, poor borrowing capacity, and confusion around true profitability. A clear structure and disciplined cashflow strategy create stability and better decision-making.
3. Under-investment in Asset Creation
   Owners often reinvest everything back into the business and forget to build independent wealth outside it. This increases personal risk and keeps them tied to the business longer than they want. Establishing a parallel asset-creation plan ensures the business is a choice, not a trap.
4. Inadequate Risk Management
   Many businesses carry significant owner-dependence. Lack of insurance, poor debtor terms, no contingency funding, and reliance on a single revenue stream leave the owner vulnerable. Risk management is not about fear – it’s about maintaining control.
5. No Defined Exit Pathway
   Without a plan for succession, sale, or transition, owners limit their strategic options. A clear exit framework forces discipline, increases valuation, and ensures the business supports the owner’s personal goals – not the other way around.

With the right financial advisory foundation – cashflow, asset creation, and asset protection – small business owners can avoid these traps and turn short-term success into long-term financial freedom.”

Rahul Trabeck, Regional Sales Director of ANZ, SolarWinds

“For many businesses, one of the most overlooked financial pitfalls is in IT. Duplicate hardware, unused software licences, and idle cloud resources quietly drain budgets and increase e-waste. The problem isn’t intent; it’s visibility. Without a clear view of how systems are performing or what’s actually being used, waste becomes the hidden cost of doing business.

That’s where observability makes a measurable difference. By turning system data into actionable insight it helps IT leaders monitor server utilisation, consolidate workloads, and cut redundant infrastructure. Fewer redundant tools mean lower operational costs and reduced energy consumption. Advanced analytics can also predict high-demand periods and optimise workloads, preventing costly performance issues and downtime.

Done correctly and observability transforms IT from a cost centre into a value lever. Businesses that can see clearly across their digital estate cut unnecessary consumption, save money, and operate more sustainably.”

Elise Balsillie, Head of Thryv Australia and New Zealand

“Every small business owner knows the pressure of balancing ambition with cash flow. The reality is that most financial problems do not appear overnight. They creep in through avoidable habits, such as scattered systems, unclear forecasting, and inconsistent follow-up on payments.

One of the most common traps is operating without real-time visibility. When numbers sit across invoices, notebooks and banking apps, it becomes almost impossible to recognise patterns early. I have seen business owners make decisions based on gut feel rather than accurate data, which increases the risk of costly mistakes. Platforms such as Thryv show how centralising information can create clarity and help business owners act proactively, rather than patching holes later.

Late payments are another silent drain. Many business owners wait too long to chase overdue invoices because they are juggling day-to-day tasks. Creating automated reminders, clear payment terms and easy digital payment options shortens the gap between delivering work and receiving payment.

Finally, there is the pitfall of inconsistent pricing. Without a clear view of time, workload and project scope, many businesses underestimate their true costs. Tracking activity more closely ensures your pricing reflects the real value delivered.

While it is a challenge for a small business to achieve financial stability perfection, it is important that there is focus on building systems that help your business stay informed, stay paid and stay ahead.”

Laura Ridley, Founder & CEO, The Checklist Group

One of the biggest financial traps small businesses fall into is inconsistency. Marketing turns “on” when things are slow and “off” the moment they get busy. That stop, start cycle is the fastest way to create unpredictable revenue and unnecessary stress.

The next pitfall is relying solely on one off sales. Without recurring revenue, every month starts from zero. It’s exhausting, unstable, and makes long term decision making almost impossible.

And finally not knowing the numbers that actually drive the business. Revenue alone doesn’t tell you anything. You need clarity on margins, acquisition costs, churn, and lifetime value. Without this visibility, you end up reacting instead of leading.

The solution is simple: consistent marketing, recurring revenue models, and a weekly rhythm of reviewing the numbers. Predictability is the real superpower in small business and it’s built, not guessed.

Fiona Hamann, Principal and Founder, Hamann Communication

“After 12 years running a communications consultancy, I’ve learnt that ambiguous contractual payment terms are one of the most common financial pitfalls for small businesses, though some clients will always find grey areas to challenge.

I’ve certainly not perfected negotiation, but each difficult situation teaches me something new, and I tighten my contract accordingly.

Three contract clauses have helped protect my business: detailed payment terms specifying due dates and consequences for late payment; comprehensive scope of work defining what’s included and excluded; and jurisdiction clauses, which are critical for international clients.

With overseas clients, I ensure contracts specify Australian jurisdiction so it’s not extortionate to pursue debt. Different business cultures have vastly different attitudes towards small suppliers.

Be wary of clients who negotiate down your standard terms. In my experience, those pushing hardest to remove protective clauses often become the late payers.

Only compromise on terms you can genuinely bear, and be prepared to walk away if they won’t meet you fairly. This is difficult when the contract is substantial, but an unenforceable contract is worse than no contract at all. 

A strong contract gives clear boundaries for all parties from day one.”

Maria Kathopoulis, CEO & Chief Marketing Officer at UNTMD Media

“Most small businesses don’t fail because their product is bad. They fail because the numbers don’t talk soon enough. The biggest financial pitfalls are rarely about cash; they’re about clarity.

1. Poor forecasting: Many owners budget for expenses, not volatility. The fix? Track rolling 90-day forecasts and link them to sales performance, not just bank balances.
2. Ignoring Unit Economics:  If you can’t tell your cost per lead, cost per sale, or lifetime value in seconds, you’re flying blind. Use Sync marketing and financial data to reveal where your profit really comes from.
3. Over-reliance on gut feel:  Financial intuition is powerful, but data tells the truth faster. AI-driven analytics can now help SMEs identify revenue leaks, predict cash flow, and even flag underperforming products before they tank your margins. Financial literacy is no longer a finance department skill: it’s a growth skill. When you pair real-time data with smart automation, you don’t just manage money. You engineer profitability.”

Hilary Saxton, Director, Property Mastermind

“In the same way that skipping steps in property development can lead to a financial blow-out, skipping vital actions in business can be disastrous. In property, every corner cut is an opening for suppliers or bureaucracy to exploit, squeezing your margins until you can barely breathe. This high-stakes reality offers critical lessons for any SME facing financial headwinds.

The biggest pitfall isn’t the external pressure. It’s the internal one of getting caught up in chaos and suffering from analysis paralysis. Indecision is the most dangerous risk of all, guaranteeing no progress. Common errors, like neglecting due diligence or underestimating financial feasibility, create costly mistakes. Financial success is a direct result of discipline and a meticulous process to minimise risk.

To avoid being a victim of circumstance, apply my BUILD framework:

• Back yourself, because there will never be a perfect time to act.
• Unapologetically decide and pick a direction.
• Interpret what’s imperfect to filter options.
• Lean and Learn, adjusting on the run
• Do it! Make the call and move forward.

This disciplined, action-oriented blueprint is how you take back control of your profitability and build a resilient business.”

Steven Nicholson, Outsourced CFO, GearChange Business Advisory

“Two key financial pitfalls often trip up small businesses: poor profitability and poor cash flow.

Profitability Pitfalls

Often stems from under-pricing due to not accounting for fixed costs. Know your true costs and understand the difference between gross margin and mark-up.

Avoid growth driven by discounts or low value clients. Competing on price is a race to the bottom. Even worse, it erodes margin and consumes valuable time.

Not having (and sticking to) a budget signals poor financial discipline and decisions made without planning, risking misallocating resources and undermining other priorities.

Cash Flow Pitfalls

Small businesses often run out of cash. Understand your working capital cycle – how much cash is needed before a sale converts to cash – and optimise it. A robust financial model predicting cash flow and working capital needs, updated monthly, helps highlight risks early.

Keep a close eye on your debtors, avoid giving credit terms if possible and have tight processes for chasing overdue amounts.

Finally, maintain cash buffers for periodic tax payments and unexpected expenses.

In short, profitability and cash flow are survival basics. Ignore them, and 2026 may bring more struggle than success. Manage them well, and you build a foundation for growth.”

Morgan Wilson, Founder and Director, creditte accountants and advisors

“Most small businesses don’t fail because of one big mistake. It is usually the small financial habits that compound over time. We see this all the time. Owners are busy, often wearing 10 hats, and the numbers get pushed aside until something breaks.

The biggest trap is flying blind. Many rely on the bank balance to make decisions instead of using real financial clarity. It works for a while, then cash tightens or growth picks up and the cracks show. Another common issue is mismatched spending. Businesses put money into tools, people or marketing without checking if the basics are stable first. It is just not worth the headache when a simple plan would avoid most of the stress.

The fix is simple. Build a rhythm around your numbers. Weekly cash check-ins. Monthly performance reviews. One clear dashboard that shows what is working and what is not. Most businesses do not need more data. They need better direction.

That is how you build a business that grows with confidence rather than guesswork.”

Maddison Ryan, Founder, The Digital Hub

“From my experience running a business, small businesses often run into financial problems when they try to wear all the hats, overinvest, or buy tools without thinking about whether they really need them or how they’ll use them. My advice is to focus on the basics and get those right, and be selective with software.

 Accounting tools like QuickBooks or Xero make bookkeeping easier, project management platforms like Asana or Active Collab help keep work on track, and analytics software shows what marketing efforts are actually working. There are even free options to start out with, like Google Analytics. Only invest in tools that simplify day-to-day operations, help grow the business, or automate repetitive tasks.

Keep an eye on cash flow, have a safety buffer, and regularly review your pricing to make sure your business is profitable. Talking with an accountant or someone in your industry before big purchases can save headaches later. Using the right tools and keeping financial processes simple makes it easier for small business owners to manage resources and grow steadily.”

Joseph Khalil, Director at With Finance

“The most common financial pitfall I see is failing to plan ahead. One of the biggest lessons I learned in life is to stop thinking in the immediate future only and start thinking a few moves ahead. It was a lesson derived from the classic game of chess. Without thinking further into the future and without completely understanding your numbers in business you can be in a lot of trouble. This is where we have been able to successfully support so many clients because we will not simply do what the client wants in the immediate future if we can see it could do more harm than good in the long run.

The art in my business is not just to get someone a loan, but actually understand their long term goals and put the pieces together for them along the way. Each move should compliment the next, making their life much more enjoyable with a well thought-out plan.

Knowing your numbers in business is another financial pitfall small businesses face. I find that too many times business owners are not aware of their numbers which is quite scary really. I have been there and done that. It wasn’t until I really understood my numbers in business that I was able to succeed. Making decisions without knowing your numbers is like crossing the road blindfolded. Reporting and forecasting are some of the most underutilised tools in small businesses. By doing these things not only do you better understand your business more but you are able to visualise the results that will only help bring them into fruition faster. It builds confidence and helps you make the right moves.”

Ankit Jain, CEO and Founder of Econnex

One of the biggest opportunities that small businesses commonly miss is regularly checking they are actually getting the best rates. The pace and sheer volume of workload that small businesses manage every day often force them into positions where they sign a contract and store documentation digitally or in a drawer, never to be reviewed again. Unfortunately, it’s not reasonable to assume that once a contract is secured with a great rate, that it will continue to be the best option for your business long-term. 

With ongoing inflation and, particularly, rising costs of necessities like electricity and internet connectivity, businesses cannot afford to take a ‘set and forget’ approach to their regular bills or ongoing contracts. Simply comparing their services to other providers, and making quick switches to ensure you’re always getting the best deal could save a business thousands of dollars a month.

Nitesh Roopa, Managing Partner, ProfitPulse

“For many small businesses, financial strain doesn’t arrive suddenly; it builds quietly through small habits that compound over time. The most common pitfall we see is a lack of rhythm in financial decision-making. Businesses often react to cash-flow pressures rather than anticipate them, creating a cycle of stress that can be avoided with clearer routines.

Another challenge is relying on outdated or manual processes. When invoicing, payments, expenses or approvals sit in inboxes or spreadsheets, business owners lose the visibility they need to make confident decisions. This delay doesn’t just slow the business down; it distorts the real financial picture.

A third pitfall is underestimating the power of working capital discipline. Many SMEs focus heavily on revenue growth while overlooking the timing of payments, stock cycles, cost creep and operational inefficiencies that quietly erode profitability.

The solution rarely requires complex models. It starts with simple, consistent practices: weekly cash-flow reviews, realistic forecasting, timely invoicing, structured approval processes and clear ownership of financial responsibilities. When paired with modern systems and the right external guidance, businesses can move from reacting to planning; creating stability, scalability and stronger long-term outcomes.

Strong habits don’t just protect a business; they position it to grow with confidence.”

Kylie Bishop, Founder & MD, Incredible U

“I’ve coached and advised hundreds of small business owners over the last 15 years, and the top three financial pitfalls have remained the same.

1. Poor cashflow management

‘Cash is king and timing is everything’ is one of my favourite sayings. If more businesses understood their cashflow cycle and took steps to manage it, far fewer would face financial stress.

Strategies that speed up cash coming in, and slow down cash going out, make an immediate impact. Strengthen your Terms of Trade, invoice promptly, and follow up payments quickly. Improving collection times by even a week will help. Schedule and set aside your income tax, GST, superannuation, and loan repayments to avoid being caught short.

2. Misunderstanding revenue and profit

Sales revenue does generate cash to spend, but don’t be fooled – revenue is not profit and profit is not cash! Your P&L does not show who you owe money to, and your Balance Sheet deserves equal attention. Take the time to become confident reading your financial statements. It will lead to stronger decision making.

3. No budgets or plans

Strategies, budgets and cashflow plans are essential for managing the first two pitfalls. You can’t manage what you don’t monitor so create a strategic plan and include a budget and cashflow model. Monitor your actual results regularly and act fast when necessary. A “no surprises” mindset works wonders.”

James Roberts-Thomson, Head of Revolut Business, Australia

1. Falling victim to inertia.

Sticking with the same bank or workflow because “it’s easier” prevents you from optimising fees, efficiency, and service. Regularly review your financial stack to ensure you’re not paying more than you need or missing out on better tools.

2. Lack of visibility and integration.

Disconnected systems — accounting software, invoicing platforms, payment systems — obscure your true cash-flow picture. Without real-time insights, forecasting is guesswork and risks go unseen. Integrate your tools for a single source of truth.

3. Unpredictable cash flow and late payments.

Many SMEs struggle with volatility or clients paying late. According to data, rising receivables and liquidity pressure are among the top concerns for Aussie SMEs.

4. Over-reliance on high-cost credit.

When cash gets tight, it’s tempting to lean on expensive short-term loans or credit cards. Instead, explore lower-cost financing (e.g., invoice financing) and build cash reserves to reduce dependence on debt.

5. Underinvestment in financial strategy.

Many SMEs don’t treat finance as a strategic function. They miss growth opportunities, misallocate resources, and don’t use their accountant as a growth partner. Develop regular forecasting, budget reviews, and consider financial tools that give you CFO-level clarity.”

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