Home topics news Credit: Alexander Grey News News SME owners dip into savings as prices soar Yajush Gupta June 23, 2023 Australian small businesses resort to personal savings or price hikes to combat rising costs, says Xero report. According to a recent report titled “Money Matters: navigating the impact of economic conditions on the cash flow of Australian small and medium-sized businesses” by global small business platform Xero, Australian small business owners are facing financial challenges and taking measures to maintain profitability. The report highlights the financial strain on small businesses, with 27 per cent revealing they have dipped into their personal savings to sustain their operations. Additionally, 34 per cent of small business owners have been unable to pay themselves. Late payments from customers have a ripple effect on the entire supply chain, making it difficult for businesses to meet their own financial obligations (26 per cent). This contributes to cash flow stress, leading to negotiations of payment terms with suppliers (42 per cent) and experiencing revenue stagnation (40 per cent). The report also reveals concerns among small business owners, with 45 per cent worried about their personal financial future and 48 per cent concerned about their business’s financial future. Only 49 per cent feel confident in achieving their business’s financial goals, and 60 per cent lack confidence in withstanding financial shocks. Cash flow issues are widespread, affecting 60 per cent of surveyed businesses, with 14 per cent facing significant challenges. Nearly one-third (29 per cent) of small businesses