How to create a cash flow forecast for your business

A cash flow forecast is one of the most important tools you can use for business planning. In 2025, with rising costs and tighter compliance deadlines, understanding exactly what cash is coming in and going out of your business is essential.

A forecast gives you a clear picture of how long your business can continue to operate at current sales levels by showing how much money you’ll have in the bank at the end of a given period. It’s not just about survival — it’s about building confidence in your numbers so you can make informed decisions about growth, payroll, tax obligations, and investment.

At First Class Accounts Ovens & Murray, we help business owners build reliable forecasts that take the stress out of cash flow management.

Why a cash flow forecast matters

A cash flow forecast gives you a clearer understanding of what’s driving revenue in your business and visibility over your expenses. With this knowledge, you can identify which costs are essential, which are flexible, and where you can make changes to improve your position.

Forecasting also allows you to model different scenarios, helping you see the outcomes of decisions before you make them. For example:

• What happens if sales dip for three months?

• How would expanding into a new channel impact your outgoings?

• Can you afford to bring on another employee, and when?

In 2025, lenders, investors, and government support programs increasingly expect to see detailed cash flow forecasts as part of their approval process. A strong plan demonstrates that you understand your numbers and have a strategy to deal with uncertainty.

If you’re applying for funding or looking to expand, First Class Accounts Ovens & Murray can help you prepare accurate forecasts that meet lender requirements.

What information do you need?

The accuracy of your cash flow forecast depends on the quality of the data you put in. While accounting software like Xero, MYOB or QuickBooks can automate parts of the process, you still need to ensure your records are up to date and accurate.

Here’s the key information to gather before you start building a forecast:

Understanding where your cash is coming from

Start with revenue from sales. Break your figures down by product or service line and across sales channels. This helps you identify your biggest income drivers. Ask yourself questions like:

• Does 80% of your revenue come from just 20% of your products or services?

• Which sales channels are the most profitable?

• Do you have a healthy balance of high-value/low-volume and low-value/high-volume sales?

Don’t forget to include other sources of income, such as government grants, tax refunds, or business investments. In 2025, many businesses are also earning income through digital platforms or subscription models. It’s important to make sure these are captured as well.

Understanding expenses, ie where is the cash going?

Your forecast should also capture all outgoing costs, such as rent, wages, supplier payments, bank fees and loan repayments, tax liabilities, utilities, and insurance. If you have a business loan, note down the repayment schedule, interest, and when the debt will be cleared.

It’s also important to include:

• Tax obligations (GST, PAYG, superannuation, company tax)

• Capital expenses (equipment, vehicles, or major purchases)

• Variable costs such as freight, raw materials, or commissions

Separating fixed and variable costs will help you understand which expenses can be adjusted if your income changes. For example, rent is fixed, but travel, marketing spend, or director’s drawings can usually be reduced if needed.

First Class Accounts Ovens & Murray can help you set up a clear expense structure so you always know what’s fixed, what’s flexible, and how to plan for tax payments on time.

Making informed decisions in your business

A reliable cash flow forecast brings all of your financial data together in one place. It shows you not only how long your business can continue at current income levels, but also gives you the confidence to make big decisions. For example, it can help you determine when to:

• Hire additional staff

• Purchase inventory or equipment

• Take advantage of a supplier discount

• Invest in marketing or expansion

Remember, a cash flow forecast is different to a budget. A budget projects income and expenses, but a forecast focuses on the timing of cash movements. For example, you may record a sale in your budget, but if the customer pays on 30-day terms, the cash may not hit your bank account until the following month.

Building confidence with cash flow

If cash flow forecasting feels overwhelming, you don’t have to manage it alone. With the right setup, you can use your accounting software alongside forecasting tools to get accurate, real-time insights.

At First Class Accounts Ovens & Murray, we work with you to create forecasts that not only show where your business stands today, but also help you plan ahead for payroll, tax, supplier payments, and growth opportunities.

Contact us today to start building a cash flow forecast that gives you clarity and confidence in your business decisions.

Forecasting FAQs

Q: What is the main purpose of a cash flow forecast?

A cash flow forecast helps you predict the money coming in and going out of your business so you can plan for expenses, payroll, and growth.

Q: How often should I update my cash flow forecast?

It’s best to update your forecast monthly. Regular updates ensure you capture seasonal income dips, upcoming tax payments, and changes in expenses.

Q: What’s the difference between a budget and a cash flow forecast?

A budget estimates income and expenses, while a cash flow forecast focuses on when money will move in and out of your bank account.

Contact us today to start building a cash flow forecast that gives you clarity and confidence in your business decisions.

Six reasons to look at your financial reports

Taking time each month to review your financial reports is no longer optional, it’s essential for every business owner. 

With rising costs, stricter compliance requirements, and increased pressure on cash flow, having clear visibility over your numbers is one of the best tools you have to keep your business stable and growing.

If you don’t set aside time for this, it’s easy to miss early warning signs that could affect your ability to pay staff, suppliers, or even yourself.

Why reports matter

Many business owners avoid reports because they’re time-poor or they feel the numbers don’t make sense. 

That’s where having a reliable bookkeeper like First Class Accounts Ovens & Murray can make all the difference. We not only prepare the reports but also help you understand them. 

Here are six reasons why reviewing your financial reports regularly matters more than ever in 2025.

Which reports to look at

At a bare minimum, and depending on the complexity of your business, you should be looking at the following:

Profit and Loss (P&L)

As the name suggests, your P&L tells you how your business is performing over a period of time, such as a month or a financial year. In broad terms it shows the revenue that your business has generated, less the expenses for that same period. In other words, it shows how profitable your business is.

Tip: Compare this month with the same month last year and check gross margin movements. Small swings often point to pricing or cost issues that are easy to fix early.

Balance Sheet

The Balance Sheet shows the value of the business’s Assets, Liabilities and Equity.

Assets include things like money in bank accounts, Plant and Equipment, Accounts Receivable balances

Liabilities include things like Bank loans and credit cards, Accounts Payable, and Hire Purchase balances

Equity is the difference between your Assets and your Liabilities and includes Retained Earnings and Owner Funds Introduced

Tip: Lenders still assess funding applications against clean, current Balance Sheets. Keeping this reconciled monthly can make finance conversations faster. 

Accounts Receivable Ageing Report

This shows how much money is still owed to the business as at a certain date in time, and is usually segmented as to how overdue they are, or sometimes by how far past the invoice date they are. Generally, you will have Current, 30, 60 and 90 days columns.

Tip: Late payments remain a pressure point for many SMEs. Monitor 30+ day slippage and act early.

Accounts Payable Ageing Report

This report shows who the business owes money to as at a certain date in time and, like the Accounts Receivable Ageing report, is usually segmented by overdue period.

Tip: Review upcoming supplier, payroll and ATO obligations together so you can schedule payments with confidence. For payroll reporting, ensure your STP setup remains compliant.

So, why bother? Six reasons

1. Understand your business better

By looking at your Profit and Loss report monthly you will get a good picture of how your business is performing month by month and it will give you a better understanding of what makes up your profit.

It can be helpful to compare periods, or to look at a month by month P&L, so you can clearly see on one page the revenue and expenses month by month. This will help to identify trends in your data and may also highlight anomalies in coding or categorising.

First Class Accounts Ovens & Murray can walk you through your monthly reports in plain English, helping you understand your numbers so you can make informed decisions with confidence.

2. Accurate information for lending purposes

If you are applying for a loan or an overdraft, the bank or financial institution will look closely at both your Profit and Loss report and the Balance Sheet as a lot can be learned about a business by looking at these reports together.

We keep your accounts reconciled and reports up to date so you can provide lenders with accurate information whenever you need it.

3. Get paid quicker and reduce bad debts

By looking at your Accounts Receivable Aged Summary each month you can follow up with overdue accounts promptly which often results in getting paid quicker. 

The longer an overdue amount is left unpaid the higher the risk of it not being paid at all, so it is important to keep on top of this.

We can help set up automated reminders and receivables tools through trusted partner apps, so you get paid faster and improve your cash flow.

4. Better relationships with your suppliers

Assuming you are entering your supplier bills into your accounting software (recommended for most businesses to get an accurate profitability figure) your Aged Payables report will alert you to any unpaid or overdue amounts.

Supplier relationships are an important aspect of your business and paying on time is crucial to maintaining those relationships.

Our accurate reporting and scheduling support ensures supplier invoices and employee wages are paid on time, protecting relationships and trust.

5. Better cash flow

Having an accurate understanding of how much money the business is owed, and how much money the business owes, can help with cash flow planning to ensure that there is enough money when needed. 

Additionally, understanding the trends of your business, its profitability drivers, its expenses, etc., can help to plan sales and marketing campaigns so that the revenue keeps coming in.

We can prepare rolling cash flow forecasts, showing exactly what’s coming in and going out, and when. You’ll always know if you can meet payroll, super, and ATO deadlines.

6. Better decision making

Your financial reports tell the story of your business and it’s important that you understand the story that they are telling you. 

The better you understand what’s going on in your business the stronger position you will be in to make better business decisions that affect the profitability of your business and its financial viability.

Our team doesn’t just produce reports, we work with you to interpret them and guide decisions about growth, pricing, and planning.

What’s next?

If you would like to know which reports are relevant to your business, and you want to better understand what’s going on in your business, then book a time with us to go through them with you.

Your business success is important to us and we are here to help you. If you’d like hands-on support setting up monthly reporting, commentary and cash flow forecasting, book a session with First Class Accounts Ovens & Murray. We will tailor a simple reporting pack for your business.

Quick FAQs

Which financial reports should I review monthly?

Profit and Loss, Balance Sheet, Aged Receivables and Aged Payables. These four give you a clear view of profit and cash flow.

How do financial reports help cash flow?

They show what is due in and out, and when. Pair them with a forecast to plan staff, super and ATO payments.

Do I need a bookkeeper for this?

A registered BAS agent or bookkeeper ensures your reports are accurate and compliant, and can add plain-English commentary so decisions are easier. First Class Accounts Ovens & Murray can help.

How to Cut Costs and Increase Prices Without Losing Customers

Many small and medium businesses are facing tighter margins in 2025 due to rising costs, higher interest rates, and ongoing supply chain pressures. 

The more prepared you are to manage these challenges, the better placed your business will be to maintain profitability and stability.

Managing expenses in today’s environment

Managing expenses is always important, no matter the stage of your business. 

With inflation and wage pressures continuing into 2025, many business owners are reviewing how they can reduce unnecessary spending while still investing in areas that help them grow. 

At the same time, you may need to consider whether your prices still reflect the true cost of doing business. Getting this balance right can make a real difference to your cash flow and profitability.

Cash flow and systems

Cash flow is still one of the biggest challenges for small businesses. When money isn’t coming in consistently, it helps to look at both your costs and your systems. 

An inefficient process can be just as costly as an unnecessary expense. 

• Are your invoices going out on time? 

• Are supplier payments managed in a way that balances loyalty with cash flow needs?

• Do you have visibility of what’s coming in and what’s going out in the next three to six months?

If getting clients to pay on time is one of your challenges, check out our blog 6 Secrets to Getting Prompt Payment for practical tips to improve your cash flow.

Additionally, these are all areas where the right bookkeeping support can make a difference. At First Class Accounts Ovens & Murray, we work with you to put systems in place that give you a clear picture of your finances so you can make better decisions with confidence.

Smart ways to get your costs under control

Start with a cost control audit

Identify your biggest cost centres and review how you manage them. 

Payroll errors, subscription bloat, and poor stock management are common drains on business resources. As your bookkeeper we can help you review these costs regularly, so nothing slips through unnoticed.

Be aware of the bigger picture

Cutting costs too deeply can harm your business in the long run. 

Instead, track costs consistently and look for smarter ways to operate. Automating repetitive tasks, such as payroll and bank reconciliations, reduces errors and saves valuable time. 

Our team at First Class Accounts Ovens & Murray can recommend the right apps to streamline your processes and reduce waste.

Involve your team

Your team are often the first to notice inefficiencies. Bringing them into the conversation about cost management can uncover practical ideas. 

If you’re updating systems or introducing new software, make sure staff are trained and supported. We often work with businesses to not only implement new apps but also provide the training needed so staff feel confident using them.

Benchmark your business

Comparing costs with similar businesses in your industry can highlight areas for improvement. 

For example, if competitors are managing inventory with less overhead, it may be worth exploring the tools or processes they use. 

At First Class Accounts Ovens & Murray, we regularly work with clients across different industries and can provide insights into what’s working well for businesses like yours.

Seek advice

Even if you have a good sense of your cost issues, a fresh set of eyes can help. 

Talking with your bookkeeper or accountant can highlight areas you may not have considered. At First Class Accounts Ovens & Murray, we help you identify where efficiencies can be gained and ensure you’re meeting all compliance requirements while staying on top of cash flow. 

If you’d like support to review your costs, get in touch with us today.

How can I increase prices without losing customers?

Raising prices is never easy, but sometimes it’s necessary to reflect rising costs and keep your business sustainable. 

In 2025, many industries are facing price increases due to supply chain challenges, higher wages, and increased compliance costs. 

The key is clear, honest communication. Customers value transparency and are more likely to stay loyal if they understand why changes are being made.

• Update your website, social media, and any online booking systems to reflect pricing changes. Explain the reasons behind them clearly and professionally. A short post or FAQ update can go a long way in maintaining trust.

• Send an email or newsletter to your clients and suppliers, giving them notice of the change. Where possible, provide advance warning so they can adjust budgets or expectations.

• If you’re meeting clients face-to-face, let them know about pricing changes upfront. Failing to do so can damage trust and may even breach Fair Trading requirements. Make sure your staff are also aware and confident in explaining the changes when asked.

• Focus on customer experience. Train your staff to explain changes positively and professionally, reinforcing the value your business provides. A strong customer relationship often matters more than the price point itself.

• If you’re concerned about losing customers, consider phasing in increases gradually. This approach can ease the transition and give customers time to adapt. You may also want to offer additional value, such as improved service or bundled packages, to help justify the change.

Ready to make better business decisions?

If you’re unsure whether to cut costs, raise prices, or do both, we can help. 

At First Class Accounts Ovens & Murray, we work alongside you to review your numbers, streamline your processes, and provide real-world advice so you can make confident business decisions. 

Contact us today to book a chat about your next steps.

Frequently asked questions about cutting costs and raising prices

Q: What’s the best way to reduce business costs in 2025?
A: Start with a cost control audit, automate repetitive tasks, and review subscriptions or overheads. Bookkeepers can help track costs and identify savings.

Q: How do I raise prices without losing customers?
A: Be transparent, communicate changes clearly across all channels, give advance notice, and reinforce the value you provide to customers.

Q: Why is cash flow management important for small businesses?
A: Poor cash flow is one of the main reasons small businesses struggle. Effective cash flow planning ensures bills, wages, and suppliers are paid on time.

Establishing document systems and processes

With growth comes growing pains. Those pains can affect team morale and your margins. And often, they’re caused by inconsistent or non-existent processes.

To avoid these issues, it's essential to preempt potential friction and put systems in place that allow your business to scale smoothly. Having clearly documented processes not only boosts efficiency and consistency, but also makes it easier to delegate and onboard new team members.

At First Class Accounts Ovens & Murray, we regularly support business owners with setting up and refining their internal systems, especially those related to payroll, bookkeeping, and compliance. 

Here’s a guide to help establish practical, scalable systems in your business.

Nine steps to establish great systems

1. Identify your key systems

Start with your most critical processes. These are usually the ones that are customer-facing, rely on a single team member’s knowledge, cause repeated confusion or delay, or directly impact cash flow (like invoicing or payment follow-ups).

If there’s a task that slows everything else down or holds up your ability to get paid, document that first.

2. Develop a standardised approach to documenting your systems

Consistency is key. Processes should be documented in a way that’s clear and easy to follow. Flowcharts or diagrams are a good place to start, followed by text that explains each step in more detail.

Include checklists, templates (like welcome emails or standard replies), and simple ‘how-to’ guides for tools your team uses regularly. This ensures tasks are done the same way every time, regardless of who’s doing them.

3. Break each process down into bite-sized steps

Make sure each process is clear about:

• Who does what

• When it needs to be done

• How different team members hand tasks over to each other

Clarity prevents tasks from falling through the cracks and makes your team more confident in handling responsibilities.

4. Clearly label and store your documents

Procedures are only useful if they can be found and followed. Online storage (such as Google Drive, Microsoft SharePoint or your project management system) makes access easy and supports version control.

Make sure everything is logically named, and consider creating a shared ‘Systems’ folder where all team members can access what they need quickly.

5. Identify the best person to write each process

The person who actually performs the task should write the first version of the process, they know it best.

This doesn’t need to be a time-consuming job. Start small, with dot points or a screen recording. The business owner or manager can then review and make sure it aligns with overall expectations.

This is where external support can also be helpful. If you need help documenting financial processes, like payroll, BAS lodgements, or expense management, First Class Accounts Ovens & Murray can help you get it done properly, and fast.

6. Test the process

A new team member should be able to follow the documented steps and complete the task with minimal help.

If they can’t, then the instructions aren’t clear enough. Go back and refine it. Use plain language. Remove jargon. Think like someone who has never seen it before.

7. Train your team to follow the process

Introduce relevant procedures during team onboarding and reinforce the importance of following them.

When mistakes happen, treat them as system failures not personal ones. This approach builds trust and encourages everyone to look for better ways to do things.

8. Review and update processes regularly

Don’t set and forget. As your business evolves, so will your systems. Regular reviews, say every 6–12 months, help keep everything up to date and relevant.

Encourage your team to ‘own’ their processes and suggest improvements. They’re usually the first to notice when something’s not working. Avoid the urge to dictate, collaboration leads to better, more practical systems.

If you’re unsure how to start these reviews or want to prioritise finance-related systems, we’re here to help.

9. Look for ways to automate or streamline

Software and automation tools are more accessible than ever in 2025. The right tools can save you serious time and reduce the risk of manual error.

Whether it’s scheduling recurring invoices, automating payroll, or integrating apps with Xero, there’s often a smarter way to do things.

Need help reviewing your finance-related systems or identifying apps that will save you time and money? At First Class Accounts Ovens & Murray, we help business owners streamline, simplify, and automate the processes that matter most.

Making systems work for your business

Documented systems aren’t just for big businesses. They’re what help small businesses grow without the wheels falling off.

The good news? You don’t need to overhaul everything at once. Just start with one process, preferably one that’s causing the most pain, and build from there.

And if you need help getting your financial systems in order, First Class Accounts Ovens & Murray can work with you to review your current processes, recommend improvements, and even implement them alongside your team.

“Speed is useful only if you are running in the right direction.” - Joel Barker

We can help you review and improve your critical business processes. Get in touch!

The true cost of a new employee in 2025

Bringing on another pair of hands?

It can be a big decision to commit to having a new member on the team, but the right person will bring in the skills you need to grow the business and give you more time to achieve your goals, even if that’s to spend more time with your family.

In 2025, hiring someone new is about more than just paying a wage. With rising superannuation rates, more complex compliance requirements, and tight labour market conditions, it’s important to understand the true cost of employing someone before you make the leap.

Before you advertise the role

Spend some time to understand what skills you need in your business to move forward or to strengthen your position in the market. Think about whether your needs are short-term or long-term. Will this person be taking work off your plate so you can focus elsewhere? Or are they bringing in skills that currently don’t exist in the business?

You may decide that the skill gap could be met by training existing staff who have capacity or would be open to a change in job description. Promoting from within can sometimes be more cost-effective and improve staff retention, especially if your existing team already understands how your business runs.

If you're confident you need to hire externally, that’s when it’s time to define the role more clearly.

If the role is new

Decide whether you need a full-time or part-time employee, and what sort of experience or qualifications the ideal candidate would have. Be realistic about your budget, but also think about what’s non-negotiable for the role.

If they need training when they start, consider who will run this and how that will impact timings. Will a team member need to step back from their usual workload to get the new person up to speed? Will it affect productivity in the short term? These are practical questions to answer before you bring someone on board.

A structured onboarding and training plan will help the new hire settle in quickly, and help you get the most value from them in the long run.

Create a job description

This will help you when it’s time to assess candidates. A good job description should cover the key responsibilities, reporting structure, necessary qualifications, and the type of person who would succeed in the role.

Try to avoid too many acronyms and internal jargon that won’t make sense to people outside your company. You want the right people to understand the opportunity and see themselves in it. Being clear about your expectations also helps reduce the chance of misunderstandings down the track.

Your job description is also a great tool for performance reviews and staff development once the person is in the role.

Understand the true cost

Finally, you’ll want to understand the true cost of adding another staff member. This is often where business owners get caught out. It’s not just about salary.

Start with average industry salary rates, and then work out the fixed and discretionary costs involved. These include:

• Superannuation: As of July 2025, the super rate is 12%. This is on top of base salary.
• Leave entitlements: Annual leave, sick leave, and potentially long service leave depending on the employment arrangement.
• Payroll tax: You may need to register for payroll tax depending on your total wage bill and location.
• Workers compensation insurance: A legal requirement in every state and territory.
• Fringe Benefit Tax (FBT): If you offer benefits like car parking or gym memberships, this could apply.
• Recruitment costs: Include the time spent writing ads, reviewing applications, interviewing, and any fees for recruitment agencies.
• Training and onboarding: Whether internal or external, training takes time and resources.
• Equipment and overheads: Don’t forget software licenses, desks, phones, uniforms, or tools of trade.

All of this contributes to the real cost of hiring. Having a clear picture helps you budget properly and avoid cash flow issues later on.

At First Class Accounts Ovens & Murray, we regularly help clients work through these numbers to see whether a hire is viable. We can also forecast the cash flow impact over the next 6 to 12 months, so you can hire with confidence.

Getting payroll and compliance right

Once you’ve made the decision to hire, getting the back-end admin right is just as important. You’ll need to:

• Set up Single Touch Payroll (STP) correctly
• Make timely super payments
• Record leave accruals accurately
• Report PAYG withholding
• Keep your payroll records compliant

Payroll is one of the most sensitive parts of your business. Getting it wrong damages trust and can lead to fines and penalties. Our payroll service gives you peace of mind. We make sure your team gets paid on time, correctly, and in line with the rules.

Bringing it all together

Employing someone new to help take your business forward is an exciting step. But it’s one that should be taken with all the facts in hand.

If you're about to hire your first team member or growing your existing team, talk to us at First Class Accounts Ovens & Murray.

We’ll help make sure your finances, systems, and paperwork are in order before you hire, and that you understand the true cost of bringing someone new into the business.

Get in touch to see how we can help.

What’s in the forecast?

When you’re heading out for a fishing trip or a hike, you check the weather forecast first. It’s common sense. You want to know what’s coming so you’re prepared.

It’s the same with running your business.

Cashflow is your weather. And your business forecast tells you what’s ahead, sunshine or storms, based on the direction you’re heading.

But unlike the weather, if your business forecast is looking grim, you can change it. You can adjust the sails, shift course, or even rework your entire route. That’s the real value of forecasting. It gives you time to act.

What your business forecast will tell you

A good forecast isn’t just a guess. It’s a tool that pulls together your sales pipeline, expenses, planned investments, and obligations to give you a clear picture of what’s coming.

It can help you:

1. Know if you’ve got enough sales in the pipeline to hit your profit targets

Your sales forecast is more than just a list of potential deals. It’s about tracking what’s likely to convert, when, and how that stacks up against your goals. If you’re falling short, your forecast gives you time to ramp up marketing, re-engage leads, or rethink your offer.

2. Check if your margins are where they need to be

It’s not just about what you sell, it’s what you keep. Are your costs creeping up? Is pricing aligned with the value you’re delivering? Your forecast helps you assess whether your margin supports your profitability targets.

3. Spot if you need to review pricing or production processes

Are you undercharging? Is it taking too long to deliver your service or produce your goods? Forecasting highlights gaps in revenue versus effort, helping you make data-driven decisions about pricing or process improvements.

4. See if your business is running efficiently

Forecasting isn't just about revenue. It can help you assess how much you’re spending to earn that revenue. Are admin or overhead costs blowing out? Is it time to automate or outsource? Forecasting helps pinpoint where efficiency gains could be made.

5. Identify opportunities to reduce costs

Looking at your forecasted outgoings across the year helps you identify recurring expenses that can be reduced, renegotiated, or removed altogether. You’ll see where you’re overspending and where smarter choices can be made.

6. Decide if you should invest more to get a better return

Sometimes spending more is the right move. Whether it's hiring staff, upgrading tools, or investing in marketing, your forecast shows whether that investment is likely to pay off, and how soon. It helps take the guesswork out of big decisions.

7. Know how much to set aside for tax

Surprise tax bills can crush your cash flow. Your forecast should include projected tax liabilities, so you’re not caught off guard. Planning ahead means avoiding panic when it comes time to pay the ATO.

8. Understand how much you can draw from the business

It’s tempting to pull more from the business when sales are high, but will that leave you short next month? A cashflow forecast helps you make informed decisions about your drawings so you’re not undermining your business’s financial health.

9. Plan your debt repayments

Whether it’s loans, credit cards, or equipment finance, your forecast helps you plan repayments without hurting cashflow. You’ll know what you can afford, when you can afford it, and how to manage it without stress.

10. Make sure you’re meeting bank and lender requirements

If you’ve got finance in place, your lender may have covenants or minimum financial thresholds you need to meet. A forecast helps ensure you stay compliant and avoid breaching any conditions – which could impact your funding.

Forecasting helps you take control

The biggest difference between a business forecast and a weather forecast is control.

You can’t stop a storm, but if your business is heading for a rough patch, you can take action. You can boost your sales efforts, reduce expenses, adjust staffing levels, delay non-essential spending, or seek funding in advance.

Your forecast doesn’t just tell you what’s coming. It gives you the power to prepare, adjust and keep things steady.

That’s why a forecast should never be a one-off document that sits in a drawer. It should be a living tool, reviewed regularly (ideally monthly) alongside your actual performance, to make sure you're still on track.

Don’t wait to get soaked – check your forecast now

Running a business without a forecast is like heading out on the water without checking the radar.

At First Class Accounts Ovens & Murray, we build easy-to-understand cashflow forecasts tailored to your business. We help you break it down, so you know what to expect, and what to do if things change.

Need help forecasting? We can set up your budget, map out expected income and expenses, and even run ‘what if’ scenarios so you’re better prepared for anything that comes your way.

We’ll also help you interpret the numbers, spot risks, and identify opportunities, all in plain language, with support when you need it.

Talk to First Class Accounts Ovens & Murray about getting your forecast sorted for 2025-26.

We’ll help you take control of your cashflow, reduce stress, and make confident decisions for the year ahead.

“Planning is bringing the future into the present so that you can do something about it now.” – Alan Lakein

We’re here to help you every step of the way. Get in touch. Let’s make 2025-26 your most prepared year yet.

ATO Interest Deduction Changes 

They have gone. Here’s What That Means for You

If you’ve ever had to pay interest to the ATO, you’re not alone. Two of the most common interest charges businesses face are:

• General Interest Charge (GIC): This kicks in when you don’t pay your tax on time.
• Shortfall Interest Charge (SIC): This is applied when the ATO adjusts a tax return and you end up owing more.

Until now, both GIC and SIC have been tax-deductible. But that has now changed.

What ATO Interest Deductions have changed?

The Federal Government has now passed legislation to remove tax deductions for both the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC), effective from 1 July this year. This means that if you’re charged interest by the ATO for late payments or amended tax assessments, you will no longer be able to claim those charges as a tax deduction.

The move aims to reduce the growing backlog of unpaid tax and encourage businesses to meet their tax obligations on time. With the change now law, it’s more important than ever to get proactive about managing tax liabilities.

What you should be doing now

If you’re carrying any unpaid tax, this is a good time to take action. 

If you currently owe the ATO, now is the time to take a close look at your position. One of the most effective ways to manage this is to review your cash flow regularly. Even short, structured monthly or quarterly meetings that look at your cash flow, profit and loss, and balance sheet will help you stay in control. That insight means you can plan for tax obligations in advance, rather than being caught off guard.

If you're carrying any unpaid ATO debt, the focus now should be on reducing the impact of these non-deductible interest charges. Although the deduction benefit is no longer available, paying down tax debt sooner can help you avoid additional interest and stay in a stronger financial position.

If paying it all isn’t possible, start by including the debt repayments in your cash flow forecast and create a plan to reduce it progressively. 

If the debt is large or feels overwhelming, it might also be worth speaking to your finance broker or advisor about potential refinancing options. Without the deductibility, ATO interest becomes expensive debt to carry.

A quick reminder

Even though the change is now law, it hasn’t stopped the ability to ask the ATO to remit interest charges. Businesses that are taking steps to get back on top of their tax obligations may still be able to negotiate a reduction in GIC or SIC. That process is staying in place, and we’ll continue to support our clients in navigating it.

Stay ahead with support that works

We understand how stressful ATO debt and unexpected interest costs can be. But you don’t have to manage these ATO Interest Deduction changes on your own. 

At First Class Accounts Ovens & Murray, we work with you to stay on top of your cash flow, set up practical plans, and reduce the stress of ATO debt.

If you’re worried about how these changes could affect your business, now’s the time to talk. We’re here to help you get in front of it.

Understanding Your Cashflow Statement

When it comes to knowing how your business is really performing, understanding your cashflow statement is a must. It shows exactly how your business has generated and used cash (and cash equivalents) over a specific period. And that gives you valuable insight into what’s going on behind the scenes.

Alongside your profit and loss statement and balance sheet, the cashflow statement rounds out the full picture of your financial position. And once you understand how to read and use it, you’ll feel more confident in your day-to-day decisions.

At First Class Accounts Ovens & Murray, we prepare clear, easy-to-follow reports for our clients, so you’re not left guessing where the cash is coming from or where it’s going.

What your cashflow statement actually shows

The cashflow statement takes information from your other reports, specifically your profit and loss statement and balance sheet, and pulls it into one place to reflect your current cash position.

The difference is that this report is presented on a cash basis, not accrual. That means it focuses on actual money in and out of the bank during the reporting period, rather than invoices issued or received. It adjusts for movements in asset and liability accounts so you can see your real-world financial activity.

If your financial reports are managed by First Class Accounts Ovens & Murray, you’ll know your cashflow data is accurate, up to date, and explained in a way that actually makes sense. We make sure you know how much cash you have available to spend, not just what’s on paper.

Breaking it down: where the money flows

Your cashflow statement is usually divided into three areas:

Operating activities cover everyday business operations. This includes income from customers, supplier payments, wages, tax, super, and regular expenses like rent and software. It’s the day-to-day engine room of your business. 

At First Class Accounts Ovens & Murray, we manage these processes for many clients, such as payroll, so your operations keep running smoothly.

Investing activities reflect money spent or earned from buying and selling things like vehicles, equipment, or other long-term assets. Security deposits and dividends received also sit here. If you’re making big investments or planning asset purchases, your cashflow report will show how they impact your bank balance.

Financing activities include things like loans, equity contributions, and repayments. If your business has borrowed money, repaid debt, or paid out dividends, those transactions are recorded in this section. 

Extra information that matters

Formal financial reports sometimes include “notes to the financial statements.” These explain unusual or significant events that affected your business but didn’t involve cash changing hands, things like asset revaluations, depreciation, or stock adjustments.

We ensure these are clearly documented if needed, especially when working alongside your accountant to prepare reports for lenders or investors.

Why it’s worth understanding

When you look at your cashflow statement, you're not just seeing a number. You’re seeing how well your business can meet its obligations, whether your operations are sustainable, and what’s possible in the short and long term.

It helps you answer questions like:

• Can I cover my bills this month?

• How strong is my overall cash position?

• Are my operations generating enough cash to grow?

• How do my income and actual cash movements compare?

Where your profit and loss shows performance over time and your balance sheet shows position at a point in time, your cashflow statement reveals the story of your financial movements and whether they’re moving in the right direction.

And if they’re not? That’s where we come in. First Class Accounts Ovens & Murray helps identify the gaps, streamline your processes, and put cashflow planning strategies in place. We also help you prepare for seasonal dips, avoid unnecessary cash crunches, and keep your team and suppliers paid on time.

Want to feel more in control of your cash?

You’re not alone. Most business owners we work with know their business is doing OK, but they’re not always sure where the money’s going, or what’s coming next.

Understanding your cashflow statement gives you back that clarity.

If you’re ready to feel more confident about your financial position and future outlook, let’s talk. First Class Accounts Ovens & Murray offers practical support that helps you get clear on your numbers, stay in control of your operations, and plan with confidence.