HarvestWiseFor many Melbourne small businesses, the post-holiday period can be a financial wake-up call. December may have been busy, quiet, or expensive — but January is often when cash flow pressure becomes more visible. BAS payments, wages, rent, and supplier bills continue, even if your business slowed down over the break. Now is the right time to take a clear look at cash flow and put simple plans in place before the year fully ramps up.
Why Cash Flow Often Tightens Early in the Year
It’s common for Victorian small businesses to experience cash flow pressure in January and
February due to:
● Slower customer payments over the holiday period
● Fixed expenses continuing despite reduced revenue
● BAS and PAYG instalments falling due
● Rising wages and operating costs
The good news is that most cash flow issues can be improved with early action.
- Understand Your True Cash Position
Profit does not always equal cash in the bank. Reviewing your cash flow — not just your profit
and loss statement — gives a clearer picture of how your business is tracking.
Consider:
● How much cash is currently available
● What bills are due in the next 30 to 60 days
● Whether customers are paying on time
This information allows for better planning and fewer surprises. - Tighten Invoicing and Debtor Management
Late payments are one of the biggest causes of cash flow stress for small businesses. Now is a
good time to:
● Follow up overdue invoices
● Review payment terms
● Consider deposits or shorter payment timeframes
Even small improvements can have an immediate impact. - Plan Ahead for BAS and Tax Obligations
Unexpected tax bills can quickly derail cash flow. Forecasting upcoming BAS, PAYG, and
superannuation obligations allows you to plan ahead rather than react at the last minute.
An accountant can help you understand what’s coming and ensure funds are set aside. - Review Expenses With Fresh Eyes
After the holiday period, it’s worth reviewing business expenses to see what can be reduced or
renegotiated. Subscriptions, suppliers, and operating costs often increase gradually over time.
Reducing unnecessary expenses can immediately ease cash flow pressure. - Seek Advice Before Cash Flow Becomes a Problem
Cash flow challenges are much easier to manage early. Getting advice from a local Melbourne
accounting firm can help you:
● Prepare cash flow forecasts
● Improve systems and processes
● Create a plan suited to your business and industry
Take Control of Your Cash Flow
Cash flow is the foundation of every successful small business. With the right planning and professional support, you can move through the year with greater confidence and fewer financial surprises. If you need help reviewing your cash flow or planning ahead, speak with your accountant for tailored advice.