Let’s be honest — most Australian small business owners don’t start the year excited about their finances.
January (and sometimes February too) is usually a mix of catching up, planning ahead, and quietly hoping this year will feel less reactive than the last. We regularly speak with business owners who are working hard, generating income, yet still feeling unsure about cash flow, tax, or whether their business is actually moving forward.
That uncertainty usually isn’t about effort — it’s about clarity.
A proactive financial check-in early in the year can completely change how the next 12 months unfold. Instead of scrambling at BAS time or feeling blindsided at EOFY, you’re making informed decisions with confidence.
Why an Early New Year Financial Review Matters for Australian Businesses
Unlike EOFY planning, an early new year financial review gives you time to adjust before problems escalate.
Starting the year with clarity can help you:
- Improve cash flow management
- Prepare for upcoming BAS and tax obligations
- Make informed pricing and spending decisions
- Reduce financial stress throughout the year
Put simply: businesses that review their numbers early are far more likely to stay profitable.
- Review Last Year’s Financial Performance
Before setting new goals, take a clear look at how your business performed over the past 12 months.
Key questions to ask:
- Which months were most profitable?
- When did cash flow feel tight?
- Were there unexpected tax or expense surprises?
This review isn’t about judgement — it’s about identifying patterns. Many Australian businesses experience seasonal fluctuations, and recognising them early allows you to plan ahead.
Reviewing financial reports regularly is a cornerstone of good small business accounting.
- Focus on Cash Flow, Not Just Profit
One of the most common mistakes small business owners make is focusing only on profit.
Cash flow is what actually keeps your business running.
At the start of the year, you should know:
- How much cash your business has available
- Your fixed and variable monthly expenses
- When major bills, BAS, or tax payments are due
Creating a simple cash flow forecast — even a basic one — can help prevent shortfalls and improve decision‑making.
- Get Ahead of Tax and BAS Obligations
Jan/Feb is an ideal time to check:
- Whether GST and tax amounts are being set aside correctly
- Your upcoming BAS lodgement dates
- PAYG instalments and superannuation obligations
Proactive tax planning for businesses of any size can reduce surprises and improve cash flow later in the year.
If you’re unsure whether you’re setting aside enough tax, early advice can make a significant difference.
- Review Your Pricing and Profit Margins
Rising costs are a reality for many Australian businesses.
If your pricing hasn’t changed in the past year, it’s worth reviewing:
- Increases in software, rent, wages, or suppliers
- Whether your margins still support your income goals
- If you’re working more hours without seeing higher profits
Sustainable pricing isn’t about being expensive — it’s about ensuring your business remains viable.
- Set Clear Financial Goals for the Year Ahead
Vague goals lead to vague results.
Instead of saying “I want to earn more,” consider goals like:
- Improving monthly cash flow by a set amount
- Building a tax buffer account
- Paying yourself consistently
- Reducing reliance on credit
Clear financial goals make it easier to track progress and adjust your strategy throughout the year.
How Lemonade Beach Accounting Supports Australian Small Businesses
At Lemonade Beach Accounting, we specialise in helping Australian small businesses understand their numbers without jargon or overwhelm.
We work with business owners who want:
- Clear, accurate guidance
- Proactive tax planning
- Better cash flow visibility
- Confidence in their financial decisions
If you’d like a professional financial check‑in to start the year with clarity, we’re here to help.
Clear numbers. Less stress. A sweeter business year ahead. 🍋
