Welcome to this week’s edition of Let’s Talk, where we dive deep into the financial strategies that can make or break your small business success.
Running a small business means wearing many hats, but one of the most critical and often overwhelming responsibilities is managing your finances and taxes effectively. The difference between businesses that thrive and those that merely survive often comes down to smart financial planning and strategic tax management.
This week, our panel of financial experts shares the insider strategies that successful small business owners use to keep more money in their pockets. From often-overlooked tax deductions to cash flow optimization techniques, these aren’t just theoretical concepts: they’re practical, actionable strategies you can implement immediately to strengthen your business’s financial foundation.
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Nick McGrath, CEO, Moneytech
“For small business owners, tax planning shouldn’t just be about compliance, it’s about making your money work smarter. Think of it as a cash flow tool. A simple move like bringing forward deductible expenses or using the instant asset write-off to upgrade equipment can help reduce taxable income and fuel growth in the business at the same time.
“Take invoice financing, it frees up cash that’s stuck in unpaid invoices so you’ve got the liquidity to cover bills or invest before year-end. Trade finance offers similar flexibility, whether that’s buying more stock for the business or negotiating better supplier terms, with interest often tax deductible when structured the right way.
“And it’s not just about tax time. Having a flexible credit facility means you’re less dependent on expensive short-term loans and better equipped to handle seasonal ups and downs. It’s about keeping cash flowing so you can grab opportunities when they arise.
“From our perspective at Moneytech, the businesses that come out stronger are those that think about cash flow and tax planning together, not as separate exercises. It’s a shift in mindset that can really pay off.”
Alex Molloy, Co-founder and CEO, Valiant Finance
“With the right strategies, Australian small businesses can navigate an increasingly challenging financial landscape, and significantly improve their bottom line and secure better financing opportunities.
“Track to maximise your tax deductions – In order to claim legitimate deductions, you need a record of it. From vehicle expenses to technology purchases, thorough record-keeping ensures you’re not leaving money on the table. Many SMEs miss thousands in deductions simply due to poor documentation.
“Address ATO debt – With recent legislative changes, ATO debt is no longer tax deductible, increasing the true cost of unpaid obligations by 25% for most businesses. The ATO’s General Interest Charge compounds daily at 11.17%, making immediate action critical. Prioritise refinancing or restructuring ATO debt before other financial obligations.
“Reconcile your finances regularly – Clear financial records enable better decision-making, reduce audit risk, and position your business as “financeable” when growth opportunities arise. In today’s selective lending environment, preparation is everything.
“Explore flexible loan options. Not every business loan has to be locked into a fixed structure. Flexible finance like a line of credit or a merchant cash advance linked to your sales can give your business a cashflow buffer when you need it most. A broker can help you compare these options and match you with the right fit for your situation.”
Charles Liu, Owner / Marketing Manager, Cubic Promote
“One often overlooked strategy for small businesses is using the instant asset write-off not just for big-ticket machinery, but also for everyday operational tools. Laptops, ergonomic office furniture, or even storage shelving can qualify—boosting productivity while reducing taxable income.
“Another tip is to prepay expenses before 30 June. Many small operators don’t realise they can claim 12 months of insurance, rent, or professional memberships in advance, immediately lowering this year’s tax bill while smoothing out cash flow.
“For businesses that supply nationally, freight consolidation is a hidden saver. Working with couriers to batch deliveries reduces costs and also lowers carbon emissions—something increasingly valuable when tendering for contracts.
“Finally, consider staff uniforms and branded merchandise. They’re tax-deductible, double as marketing, and remove the need for employees to claim work attire separately. It’s a practical way to keep your brand front of mind while saving at tax time.
“Proactive thinking beyond the obvious deductions ensures every dollar saved goes back into growth.”
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