{"id":3957,"date":"2026-07-07T12:52:11","date_gmt":"2026-07-07T12:52:11","guid":{"rendered":"https:\/\/derekdemars.com\/blog\/?p=3957"},"modified":"2026-07-07T12:52:11","modified_gmt":"2026-07-07T12:52:11","slug":"smart-financial-decisions-that-help-small-businesses-grow","status":"publish","type":"post","link":"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/","title":{"rendered":"Smart Financial Decisions That Help Small Businesses Grow"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Running a successful small business in Australia requires more than increasing revenue. Every financial decision, from managing cash flow to investing in new equipment, has long term consequences for profitability and compliance. Many business owners focus on daily operations while delaying financial planning until tax time, but that approach can lead to missed opportunities and unnecessary costs. Working with experienced professionals who provide <a href=\"https:\/\/www.l-co.com.au\/\" target=\"_blank\" rel=\"noopener\"><strong>business advisory services<\/strong><\/a> gives Australian businesses the financial insight needed to make confident decisions, improve performance, and achieve sustainable growth.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Why_Smart_Financial_Decisions_Matter\" >Why Smart Financial Decisions Matter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Build_Strong_Financial_Systems_From_Day_One\" >Build Strong Financial Systems From Day One<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Stay_Ahead_of_BAS_GST_and_ATO_Requirements\" >Stay Ahead of BAS, GST and ATO Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Use_Financial_Reports_to_Make_Better_Decisions\" >Use Financial Reports to Make Better Decisions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Profit_and_Loss_Statement\" >Profit and Loss Statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Balance_Sheet\" >Balance Sheet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Cash_Flow_Statement\" >Cash Flow Statement<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Strengthen_Cash_Flow_Before_Problems_Develop\" >Strengthen Cash Flow Before Problems Develop<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Develop_a_Practical_Budget\" >Develop a Practical Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Make_Growth_Decisions_With_Confidence\" >Make Growth Decisions With Confidence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Reduce_Financial_Risk\" >Reduce Financial Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Benefit_From_Ongoing_Business_Advisory_Services\" >Benefit From Ongoing Business Advisory Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Choose_the_Right_Financial_Partner\" >Choose the Right Financial Partner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/derekdemars.com\/blog\/smart-financial-decisions-that-help-small-businesses-grow\/#Build_Long_Term_Success_Through_Smarter_Financial_Decisions\" >Build Long Term Success Through Smarter Financial Decisions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Smart_Financial_Decisions_Matter\"><\/span><strong>Why Smart Financial Decisions Matter<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Australian businesses operate in a constantly changing environment where rising operating costs, changing tax legislation, and economic uncertainty can affect profitability. Making informed financial decisions helps businesses stay competitive while maintaining compliance with Australian Taxation Office (ATO) requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Professional financial guidance helps businesses:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Improve profitability<\/li>\n\n\n\n<li>Monitor cash flow effectively<\/li>\n\n\n\n<li>Prepare BAS and GST obligations<\/li>\n\n\n\n<li>Forecast future growth<\/li>\n\n\n\n<li>Identify unnecessary expenses<\/li>\n\n\n\n<li>Make confident investment decisions<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of reacting to financial challenges, business owners can make proactive decisions backed by accurate financial information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Build_Strong_Financial_Systems_From_Day_One\"><\/span><strong>Build Strong Financial Systems From Day One<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Growing businesses need reliable financial systems that provide accurate, up to date information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using cloud accounting software such as Xero or MYOB allows business owners to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Track income and expenses<\/li>\n\n\n\n<li>Reconcile bank accounts<\/li>\n\n\n\n<li>Monitor GST transactions<\/li>\n\n\n\n<li>Generate financial reports<\/li>\n\n\n\n<li>Manage payroll<\/li>\n\n\n\n<li>Prepare BAS information<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Accurate bookkeeping reduces administrative stress while providing valuable information for business planning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stay_Ahead_of_BAS_GST_and_ATO_Requirements\"><\/span><strong>Stay Ahead of BAS, GST and ATO Requirements<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the biggest financial mistakes Australian businesses make is treating tax as a once a year responsibility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses registered for GST must lodge Business Activity Statements (BAS) according to ATO deadlines. Employers must also manage PAYG withholding, Superannuation Guarantee contributions, and Single Touch Payroll (STP) reporting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Missing BAS lodgements or payroll obligations can lead to penalties and interest charges. Ongoing financial reviews ensure these obligations are managed accurately throughout the year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Use_Financial_Reports_to_Make_Better_Decisions\"><\/span><strong>Use Financial Reports to Make Better Decisions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Business owners should never rely solely on their bank balance when making important decisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monthly financial reports provide valuable insights into business performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Profit_and_Loss_Statement\"><\/span><strong>Profit and Loss Statement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Shows whether your business is generating sustainable profits after operating expenses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Balance_Sheet\"><\/span><strong>Balance Sheet<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Provides an overview of assets, liabilities, and business equity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_Flow_Statement\"><\/span><strong>Cash Flow Statement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tracks money entering and leaving the business, helping identify financial risks before they affect operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regular reporting allows businesses to identify trends and make informed decisions based on accurate financial data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strengthen_Cash_Flow_Before_Problems_Develop\"><\/span><strong>Strengthen Cash Flow Before Problems Develop<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash flow problems affect many Australian businesses, even those generating healthy sales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Professional business advisors help improve cash flow by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monitoring overdue invoices<\/li>\n\n\n\n<li>Forecasting seasonal cash flow<\/li>\n\n\n\n<li>Managing supplier payment terms<\/li>\n\n\n\n<li>Reviewing operating expenses<\/li>\n\n\n\n<li>Planning future tax obligations<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses that monitor cash flow consistently are better prepared for unexpected costs and economic changes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Develop_a_Practical_Budget\"><\/span><strong>Develop a Practical Budget<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A budget should reflect the actual costs of operating a business in Australia.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Include expenses such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employee wages<\/li>\n\n\n\n<li>Superannuation contributions<\/li>\n\n\n\n<li>Commercial rent<\/li>\n\n\n\n<li>Business insurance<\/li>\n\n\n\n<li>Software subscriptions<\/li>\n\n\n\n<li>Marketing campaigns<\/li>\n\n\n\n<li>Equipment maintenance<\/li>\n\n\n\n<li>Professional advisory services<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Reviewing your budget quarterly allows your business to adapt as market conditions change.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Make_Growth_Decisions_With_Confidence\"><\/span><strong>Make Growth Decisions With Confidence<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Expanding a business without proper financial planning can place unnecessary pressure on cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before hiring employees, opening another location, or investing in equipment, consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Current profitability<\/li>\n\n\n\n<li>Available working capital<\/li>\n\n\n\n<li>Future cash flow<\/li>\n\n\n\n<li>Return on investment<\/li>\n\n\n\n<li>Tax implications<\/li>\n\n\n\n<li>Financing options<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Professional advisors help businesses evaluate these decisions using reliable financial information instead of assumptions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduce_Financial_Risk\"><\/span><strong>Reduce Financial Risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every business faces financial risks, but careful planning significantly reduces their impact.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Smart financial decisions include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintaining emergency cash reserves<\/li>\n\n\n\n<li>Monitoring monthly financial performance<\/li>\n\n\n\n<li>Keeping accurate financial records<\/li>\n\n\n\n<li>Reviewing operating costs regularly<\/li>\n\n\n\n<li>Planning for future tax obligations<\/li>\n\n\n\n<li>Diversifying income sources where appropriate<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Preparing for financial challenges before they arise creates greater stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefit_From_Ongoing_Business_Advisory_Services\"><\/span><strong>Benefit From Ongoing Business Advisory Services<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many business owners only contact their accountant during tax season. However, businesses receive far greater value from ongoing advisory support throughout the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Professional business advisory services help with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cash flow forecasting<\/li>\n\n\n\n<li>Budget preparation<\/li>\n\n\n\n<li>Business planning<\/li>\n\n\n\n<li>Financial reporting<\/li>\n\n\n\n<li>Profit improvement strategies<\/li>\n\n\n\n<li>Business expansion planning<\/li>\n\n\n\n<li>Risk management<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Regular financial advice allows businesses to identify opportunities, improve efficiency, and respond quickly to changing business conditions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_the_Right_Financial_Partner\"><\/span><strong>Choose the Right Financial Partner<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not every accounting firm provides strategic business advice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When selecting a financial partner, look for professionals who offer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Australian taxation expertise<\/li>\n\n\n\n<li>Business advisory services<\/li>\n\n\n\n<li>Cash flow management<\/li>\n\n\n\n<li>BAS and GST support<\/li>\n\n\n\n<li>Financial forecasting<\/li>\n\n\n\n<li>Industry experience<\/li>\n\n\n\n<li>Ongoing communication<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The right advisor becomes a long term partner who understands your business goals and provides practical recommendations that support growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Build_Long_Term_Success_Through_Smarter_Financial_Decisions\"><\/span><strong>Build Long Term Success Through Smarter Financial Decisions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Strong businesses are built on informed financial decisions rather than guesswork. Australian businesses that maintain accurate bookkeeping, review financial reports regularly, prepare for BAS and ATO obligations, and seek professional <strong>business advisory services<\/strong> are better positioned to improve profitability and manage future growth. By making smarter financial decisions today, business owners can strengthen cash flow, reduce financial risk, and create a solid foundation for sustainable success in an increasingly competitive market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a successful small business in Australia requires more than increasing revenue. Every financial decision, from managing cash flow to&hellip;<\/p>\n","protected":false},"author":2,"featured_media":3958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/posts\/3957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/comments?post=3957"}],"version-history":[{"count":1,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/posts\/3957\/revisions"}],"predecessor-version":[{"id":3959,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/posts\/3957\/revisions\/3959"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/media\/3958"}],"wp:attachment":[{"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/media?parent=3957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/categories?post=3957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/derekdemars.com\/blog\/wp-json\/wp\/v2\/tags?post=3957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}