Should I focus on profits or cash flow in 2025?
Turning a profit is an essential part of running any successful business. But in today’s economy, where costs are rising and margins are under pressure, focusing only on profits can be risky.
Without reliable cash flow, even profitable businesses can quickly run into trouble.
The real answer is balance: you need both healthy profits and steady, predictable cash flow if you want to build a stable, long-term business.
Why cash flow matters
Cash flow is the foundation that keeps your business moving. Without a consistent and predictable flow of money into the business, you can’t cover overheads, pay employees, meet supplier invoices, or manage ATO obligations such as GST, PAYG and super.
For many business owners, cash flow is what keeps them awake at night because when cash is tight, stability is at risk.
What’s needed in 2025 is a strong focus on cash flow management alongside strategies to drive profitability.
This combination ensures you have enough cash in the bank to meet commitments today, while still building long-term profit for growth.
Financial management challenges
Keeping on top of your finances isn’t easy, especially with the ongoing pressures of 2025.
Compliance requirements continue to evolve, payroll accuracy matters more than ever, and operating costs still need close attention.
Many small business owners also find the technical language of accounting confusing, which makes it harder to track performance and plan ahead. This is where expert bookkeeping support from First Class Accounts Ovens & Murray becomes invaluable.
Understanding your finances
If you want to stay in control of your financial future, you need to understand how cash flow management works. In 2025, many industries are still feeling the effects of inflation and supply chain challenges, and consumer spending remains cautious. These pressures make cash flow forecasting and planning more important than ever. Having clarity around what’s coming in, what’s going out, and when it happens gives you the confidence to make smarter business decisions.
Key things to understand about your finances
Profit is a by-product of a sustainable business
Every business owner wants to see profits, but profitability alone doesn’t guarantee long-term success.
A company can look profitable on paper, yet still struggle to pay staff or suppliers on time. What really matters is sustainability: consistent revenues backed by a clear view of your cash position.
Cash flow keeps your business running
Revenue is important, but without cash available to cover wages, rent, superannuation and ATO payments, your business can’t function. This is why business owners are often told “cash is king”. Because it determines whether you can continue trading day-to-day.
At First Class Accounts Ovens & Murray, we work with business owners to manage inflows and outflows so they always know where they stand.
Know your costs and overheads
The other side of cash flow is managing expenses.
In an ideal world, inflows exceed outflows. In practice, costs creep.
Regularly review your cost base, overheads and supplier arrangements. Use the right tools to get real-time visibility. For example, Xero connects bank feeds and provides dashboards that make it easier to spot trends early.
Add-ons like Dext (data capture), ApprovalMax (approvals) and Calxa (reporting and cash flow forecasting) can further strengthen your processes and insights.
Actively manage your spending
Small changes can make a big difference.
Negotiating better supplier terms, switching to more efficient business apps, or automating manual processes can all ease pressure on your cash flow.
First Class Accounts Ovens & Murray are business app specialists helping you identify and implement the right tools for your business, saving you time and money.
Look for sensible ways to increase revenue
Boosting revenue is another lever to improve cash flow.
This might mean running targeted sales campaigns, expanding your service offering, or improving pricing strategies. When paired with reliable bookkeeping and clear reporting, you’ll be able to see exactly how increased revenue translates into improved cash flow.
Keep cash flowing, and profits will follow
With strong cash flow, your business rests on solid financial foundations. You’ll have the resources to pay staff, meet obligations, and reinvest in growth. This stability makes profitability easier to achieve and sustain.
How First Class Accounts Ovens & Murray helps
Whether you’re starting out or have been in business for years, First Class Accounts Ovens & Murray can help you strengthen your cash flow position.
We focus on five areas that keep your finances practical and on track:
Cash flow confidence: Forecasts, calendars and simple dashboards so you know what’s due and when.
Payroll, super and people payments: Accurate, compliant payroll with Single Touch Payroll, leave, entitlements and super handled correctly.
Business app advisory and implementation: Selecting, integrating and training on tools like Xero, MYOB, QuickBooks, Dext, ApprovalMax and Calxa to streamline your processes.
Reliable, done-for-you bookkeeping: BAS, IAS and ATO lodgements, bank reconciliations, end-of-month reporting, and catch-up work completed on time, every time.
Real-world advice: Clear explanations of your numbers so you can make informed decisions with confidence.
It often only takes a few small changes to make a big impact. Get in touch with us today to discuss how we can help you achieve consistent cash flow and lasting profitability.
Profits or Cash flow FAQs
What’s more important: profit or cash flow?
You need both. Profit measures performance over time. Cash flow confirms you can pay bills, wages and tax on time.
Why can a profitable business still run out of money?
Profit can be tied up in debtors or stock. If cash doesn’t arrive when expenses are due, you can still face shortfalls.
How do I improve cash flow quickly?
Tighten debtor follow-up, review payment terms, schedule ATO commitments, and check subscriptions. A short forecast helps prioritise actions.
What tools help with cash flow?
Xero, and other accounting platforms, offer real-time views. Add-ons like Dext, ApprovalMax and Calxa improve accuracy, control and forecasting.
Can a bookkeeper manage payroll and ATO lodgements?
A registered BAS Agent can handle BAS, IAS and payroll obligations. First Class Accounts Ovens & Murray provides this service.