Pricing strategies for small businesses:  Understanding costs, margins and profit

What's the best way to establish a price for your products or services?

Getting your pricing right is important. Put your prices too high and you may lose customers; put them too low and you might generate plenty of sales without making enough profit to cover your business expenses and support healthy cash flow.

Whether you're starting a new business or have been operating for years, choosing the right pricing strategy is an important part of running a financially sustainable business. Your prices need to reflect the cost of delivering your products or services, the value you provide to customers and the profit your business needs to generate.

Pricing also requires ongoing attention. Supplier costs, wages, operating expenses and customer expectations can change, which means the prices that worked for your business previously may no longer be appropriate.

So, how do you know what to charge for each product or service? And how do you decide on a price that's competitive while still generating a reasonable profit?

A good starting point is understanding your business numbers. Accurate, up to date bookkeeping gives you the financial information you need to assess your costs, monitor profitability and make informed pricing decisions.

Costs, margins and hitting the right price point

For your business to be financially viable, you need to understand whether your pricing allows you to:

• Find and win customers.

• Meet your projected sales and revenue targets.

• Cover your running costs, overheads and financial commitments.

• Generate sufficient profit to support your business and provide a return on your investment.

• Maintain enough cash flow to pay employees, suppliers and other business expenses when they're due.

But how does this all come together to define your final selling price?

The answer starts with understanding your costs, profit margins and the customers you're selling to.

Your costs can include direct expenses, such as materials or labour used to deliver a product or service, as well as indirect expenses, including insurance, rent, software subscriptions, administration and other business overheads.

For service based businesses, it's particularly important to understand how much it costs to deliver your services. The hours spent completing client work are only part of the equation. You also need to account for administration, quoting, travel, employee entitlements and other operating expenses.

This is where accurate bookkeeping makes a difference. When transactions are recorded correctly and your accounts are reconciled regularly, you have more reliable information about what your business is spending and earning.

At First Class Accounts Ovens & Murray, we help business owners maintain accurate financial records and reporting, giving them the information they need to understand their operating costs and assess how those costs affect profitability.

Different ways to calculate your prices

There are several ways to work out what to charge for your products or services. The method you choose will depend on your business costs, the type of product or service you provide, your customers and the profit margin you're aiming to achieve.

Understanding the following pricing methods can help you assess whether your current prices are appropriate for your business.

Cost price

When you make a product or deliver a service, you need to spend money to do that. These expenses can include raw materials, labour, equipment, business overheads and other costs associated with providing the product or service.

By adding up the relevant expenses and dividing them by the number of units produced or services delivered, you can calculate your cost per unit. This provides a starting point for determining your selling price before adding an amount to cover your desired profit.

For example, if it costs your business $500 to produce 100 units, your average cost is $5 per unit, assuming that amount includes the relevant production costs and allocated overheads.

For a service based business, calculating costs may involve working out the direct cost of delivering a service and allocating an appropriate share of overheads. If you're charging by the hour, it's also important to understand the difference between hours worked and hours you can actually bill to customers.

This is one reason accurate expense recording matters. If business expenses are missing, incorrectly categorised or allocated to the wrong jobs, your calculations may underestimate what it costs to deliver your products or services.

Wholesale price

When you sell products to another business for resale, you'll generally need to set a wholesale price that allows both businesses to make a profit.

One approach is to add a mark up to your cost price. The mark up is calculated as a percentage of the cost, while your gross profit margin is calculated as a percentage of the selling price.

For example, if your cost price is $5 per unit, you might sell each unit to a wholesaler for $7.50. By doing this, you recover the $5 cost of the unit and generate $2.50 in gross profit.

In this example, your mark up is 50%, while your gross profit margin is approximately 33.3%.

If the wholesaler then sells the product to a customer for $10, they generate $2.50 in gross profit before accounting for their other business expenses, assuming there are no additional direct costs.

Wholesale pricing often involves selling larger quantities at a lower price per unit. When assessing whether this approach is worthwhile, consider your gross profit per unit, expected sales volume, payment terms and the effect on cash flow.

Your bookkeeping records can help you compare wholesale and direct sales income, track the associated costs and understand how each sales channel contributes to your business's financial performance.

Retail price

The retail price is the price you charge when selling a product directly to a consumer. Setting your retail price involves understanding your costs, desired profit margin, customer expectations and what comparable products are selling for in the market.

For example, if you sell directly to a customer for $10 and your cost price is $5, you'll generate $5 in gross profit per unit before accounting for any other expenses not already included in the cost price.

This represents a gross profit margin of 50%.

By comparison, selling the same product to a wholesaler for $7.50 generates $2.50 in gross profit per unit, with a gross profit margin of approximately 33.3%.

Although your gross profit per unit is lower when selling wholesale, larger orders and lower selling costs may make wholesale sales worthwhile.

When comparing wholesale and retail pricing, you should also account for expenses such as packaging, freight, transaction fees, inventory management and customer service.

It's important to consider GST when setting and displaying prices. If your business is registered for GST and your sales are taxable, the GST component needs to be accounted for correctly when assessing revenue and profit margins. Prices advertised to consumers must generally include GST and other unavoidable charges.

The dollar examples above are GST exclusive for illustration purposes.

Keeping your sales, expenses and GST records accurate helps you understand the financial performance of different products and sales channels. Your First Class Accounts Ovens & Murray bookkeeper can help ensure these transactions are recorded and reported correctly, so you're working with reliable figures when reviewing your pricing.

Premium or economy pricing

Knowing how to position your product or service in the market is important.

Are you selling a premium product with a higher price tag? Or are you offering an economy product at a lower price point?

There's a significant difference between selling a smaller number of products or services at a higher price and selling larger volumes at a lower price. Each approach has different implications for your costs, profit margins and cash flow.

Premium pricing may suit businesses that offer specialised expertise, higher levels of service or products with features customers are prepared to pay more for.

Economy pricing generally relies on keeping operating costs under control and generating sufficient sales volume to maintain profitability.

For service based businesses, pricing may also reflect experience, the complexity of the work, the time involved and the resources required to deliver the service.

Positioning your prices between these two ends of the pricing spectrum takes research, experience and an understanding of your customers.

It's also important to understand whether your business can sustainably deliver what you're selling at your chosen price point.

For example, offering a lower hourly rate may help attract additional customers, but if your available hours are already committed, taking on more work at a lower rate could reduce profitability or require additional employees.

Regular financial reporting can help you assess how your pricing affects revenue, expenses and profit over time. When your bookkeeping is accurate and up to date, you have better information to assess whether your current approach is working.

Knowing when to discount or increase your prices

Your prices aren't static, and reviewing them regularly is an important part of managing your business.

Supplier costs, wages, insurance, software subscriptions and other operating expenses can change over time. Customer expectations and demand can also shift, which means your existing prices may need to be adjusted.

For example, you might offer a discount to encourage additional sales, accepting a lower gross profit margin in exchange for increased sales volume. Alternatively, you might increase your prices to recover rising costs or improve profitability.

Before offering a discount, it's worth calculating how many additional sales you'll need to make to maintain the same gross profit.

If a product normally sells for $100 and costs $60, it generates $40 in gross profit, representing a 40% gross profit margin.

Reducing the selling price to $90 means the gross profit falls to $30, assuming the cost remains unchanged. You would then need to sell approximately 33% more units to generate the same total gross profit.

For a service based business, the calculation might involve reviewing how discounted rates affect billable hours, employee costs and the time available to complete other work.

Increasing your prices also requires thought. Consider how sensitive your customers are to price changes, the value they receive from your products or services and whether your proposed prices remain appropriate for your market.

Your bookkeeping reports provide useful information when assessing these decisions. Reviewing revenue, expenses, gross profit and cash flow over time can help you understand how changes in costs or pricing are affecting your business.

At First Class Accounts Ovens & Murray, we can help you maintain accurate bookkeeping records and access regular financial reports, so you have reliable information available when reviewing your pricing.

If you're using accounting software or business apps to manage jobs, inventory, time tracking or sales, we can also help you review how those systems are set up and whether they're capturing the information you need to understand your costs.

Better pricing starts with understanding your business numbers

Pricing is an important part of running a profitable business, and reviewing your prices regularly helps you respond to changes in costs, customer demand and operating expenses.

The information you use to make those decisions matters. When your bookkeeping is accurate and your financial reports are up to date, it's easier to identify changes in expenses, understand profit margins and assess the financial performance of your products or services.

Your pricing decisions also affect cash flow. Even when sales are profitable, the timing of customer payments and business expenses can influence how much money is available to meet your financial commitments.

First Class Accounts Ovens & Murray provides bookkeeping, payroll, reporting and business app advisory services to help you maintain reliable financial information and improve the systems that support your business.

If you're reviewing your pricing and want to make sure your business records and reporting are giving you the information you need, get in touch with our team. We can help you understand the numbers behind your business decisions.

Frequently asked questions about pricing strategies

How do I calculate the right selling price for my product or service?

Start by calculating the cost of delivering your product or service, including direct expenses and an appropriate share of business overheads. You can then determine the selling price needed to achieve your desired profit margin. It's also important to consider customer demand, competitor pricing and the value your customers receive. Accurate bookkeeping helps ensure your cost calculations are based on reliable financial information.

What's the difference between mark up and profit margin?

Mark up is the percentage added to the cost of a product or service to calculate its selling price. Gross profit margin is the percentage of the selling price remaining after deducting the direct costs of the product or service. For example, a product costing $50 and selling for $100 has a 100% mark up and a 50% gross profit margin. Understanding this difference helps you calculate and assess your prices accurately.

How can bookkeeping help with pricing decisions?

Accurate bookkeeping helps you understand your business expenses, revenue, labour costs and profitability. Regular reconciliations and financial reporting provide reliable information you can use when reviewing prices, calculating profit margins and assessing the effect of changing costs. Your First Class Accounts Ovens & Murray bookkeeper can help maintain those records and reports so you have the financial information needed to make informed pricing decisions.

7 tips for proactive business planning 

Running a business means dealing with changes that can affect your plans, your costs and your cash flow. Some changes are within your control, while others, such as increasing supplier costs, changes in customer demand or unexpected expenses, can be harder to predict.

The key is to be proactive. Having a good understanding of your financial position, reviewing how your business operates and preparing for potential challenges can help you make informed decisions before problems become more difficult to manage.

Proactive business planning also means recognising opportunities to improve how your business operates. Whether that involves reducing unnecessary expenses, improving cash flow or introducing more efficient processes, having reliable information available makes planning easier.

So, what areas of your business should you focus on, and how can you use your financial information to help you prepare for what comes next?

How to be proactive in business

Being proactive means understanding what is happening in your business and using that information to plan ahead. It involves regularly reviewing your financial performance, looking for opportunities to improve your processes and being prepared to make changes when needed.

No business owner has all the answers, and there will be times when you need advice or support. However, having accurate financial records and a good understanding of your business numbers means you are better prepared to respond when circumstances change.

Regular bookkeeping plays an important role in this process. When your accounts are reconciled, expenses are recorded correctly and reports are up to date, you have information you can use to identify potential issues and make decisions.

The following seven steps can help you take a more proactive approach to managing your business.

7 proactive business planning tips

1. Enhance your business knowledge

Understanding your business numbers helps you recognise what is working, where your money is going and what may need attention.

Accurate, up to date bookkeeping gives you access to the financial information you need to make informed decisions. Reviewing your profit and loss reports, balance sheet, outstanding invoices and regular expenses can help you identify trends and changes in business performance.

Cloud accounting platforms, such as Xero, make it easier to access financial information and generate reports. Depending on your business needs, additional reporting and forecasting apps may also help you plan ahead.

However, the information in these systems needs to be accurate. If transactions have not been reconciled or expenses are incorrectly recorded, your reports may give you an incomplete picture of how your business is performing.

At First Class Accounts Ovens & Murray, we help business owners keep their financial information accurate and current, so they have reliable numbers available when making decisions.

2. Improve your cash flow

Managing cash flow is an important part of running a financially sustainable business, regardless of how well sales are performing.

You may be generating a profit but still experience cash flow difficulties if customers are slow to pay or significant expenses fall due before money comes into the business.

To improve your cash flow, be proactive about reviewing overheads, invoicing promptly, following up on overdue payments and understanding when regular expenses need to be paid.

It is also important to plan for larger financial commitments, including wages, superannuation, GST, PAYG withholding and supplier payments.

From 1 July 2026, Payday Super requirements mean employers generally need to pay superannuation at the same time as wages, with contributions reaching employees' super funds within seven business days of payday. This makes accurate payroll processing and cash flow planning particularly important.

Keeping your bookkeeping up to date helps you understand what money is coming in, what needs to be paid and when those payments are due. Regular cash flow forecasting can also help you identify potential shortfalls and make arrangements before payments become overdue.

3. Negotiate with your suppliers

Reviewing your supplier arrangements regularly can help you manage expenses and improve your cash flow.

If you can negotiate better prices or payment terms with your suppliers, you may be able to reduce costs or manage when money leaves your business.

Start by reviewing what you are spending with individual suppliers and whether those costs have changed over time. Are you still receiving value from the products and services you purchase? Are there opportunities to negotiate different payment terms or more suitable arrangements?

It is also worth reviewing recurring business expenses, including software subscriptions, insurance, utilities and other services. Small increases across several expenses can add up over time.

Your bookkeeping records can help identify where costs are increasing and which supplier arrangements may be worth reviewing.

When negotiating payment terms, make sure any changes are agreed with your suppliers and that you can meet the revised payment dates.

4. Consider your funding options

There may be times when your business needs additional funding, whether that is to manage a temporary cash flow shortage, purchase equipment or support future growth.

Depending on your circumstances, this could involve speaking with your bank about an overdraft or business loan, exploring other business lending options or considering external investment.

Before applying for funding, it is important to understand your current financial position, existing commitments and ability to meet future repayments.

Lenders will generally want to review financial information about your business, which may include profit and loss statements, balance sheets, cash flow forecasts and details of existing debts.

Having accurate, up to date bookkeeping records can make it easier to prepare this information and work with your accountant or financial adviser to assess the available options.

At First Class Accounts Ovens & Murray, we help maintain the financial records and reporting information that business owners and their advisers can use when reviewing funding requirements.

5. Evaluate your products and services

Regularly reviewing your products and services can help you understand which areas of your business are contributing to profitability and where changes may be worthwhile.

Some products or services may generate higher sales but also involve greater costs, while others may produce a better return with fewer resources.

Understanding the difference can help you make decisions about pricing, staffing, stock management and where to focus your time.

Start by reviewing your sales figures alongside the costs associated with delivering your products or services. Where your records provide sufficient detail, compare the revenue generated with the direct costs involved to better understand which areas are performing well.

This is where accurate bookkeeping and appropriate business systems can make a difference. When income and expenses are recorded consistently, and your systems capture information by product, service or job where needed, it becomes easier to review performance over time.

Your bookkeeper can help ensure the financial information is recorded correctly, giving you and your accountant or business adviser more useful information when evaluating your options.

6. Review your marketing and sales

Staying in regular contact with your customers and understanding what they need is an important part of maintaining and growing your business.

Review your marketing activities to make sure you are reaching the right audience and providing information that helps potential customers understand your products and services.

Is your website providing the information people are looking for? Are your marketing activities generating enquiries, and are those enquiries turning into sales?

If you are planning to increase your marketing investment, understanding your cash flow and available budget will also help you make decisions about what your business can afford.

7. Look for opportunities to adapt and diversify

Customer needs, industry conditions and business costs change over time, so it is worth regularly reviewing whether your existing products, services and processes are still meeting your business needs.

This may involve introducing additional services, expanding into a different market or changing how you deliver your existing products and services.

Before making significant changes, review the likely costs, expected revenue and impact on your business operations.

For example, introducing a new service may create additional income, but you also need to account for staffing, equipment, software and other expenses involved in delivering it.

You may also find opportunities to improve existing operations without introducing something new. Reviewing how information moves between your systems, identifying repeated manual tasks and using suitable business apps can help reduce unnecessary administration and improve efficiency.

First Class Accounts Ovens & Murray can help you review your bookkeeping processes and identify business apps that suit the way your business operates, including how those apps connect with your existing accounting software.

Make proactive planning part of your business routine

Being proactive is about making time to review how your business is performing, identifying potential challenges and making improvements before problems become more difficult to manage.

When your bookkeeping is accurate and up to date, you have access to the information needed to monitor cash flow, manage expenses, plan payments and work with your advisers on future business decisions.

At First Class Accounts Ovens & Murray, we support business owners with reliable bookkeeping, payroll processing, financial reporting and business app advice. We help ensure the information behind your business decisions is accurate and that your day to day financial processes are working efficiently.

If you would like support with your bookkeeping, business systems or financial reporting, contact First Class Accounts Ovens & Murray to discuss how we can help.

Frequently asked questions about proactive business planning

What is proactive business planning?

Proactive business planning involves regularly reviewing your financial performance, cash flow, expenses and business operations so you can prepare for potential challenges and identify opportunities for improvement. Accurate bookkeeping provides the financial information needed to support these decisions and helps you plan ahead.

How can bookkeeping help with business planning?

Keeping your bookkeeping up to date helps you understand your income, expenses, outstanding invoices and financial commitments. Accurate records support cash flow forecasting, budgeting and regular performance reviews, allowing you to make more informed business decisions.

What are the best ways to improve cash flow in a small business?

Improving cash flow starts with invoicing promptly, following up overdue payments, reviewing expenses and planning for upcoming financial commitments. Regular cash flow forecasts and accurate bookkeeping can help identify potential shortages and support better payment scheduling.

Using business technology to improve your business systems

The decisions you make in your business are only as good as the data you use to make them. The more accurate and up to date your data is, the better informed those decisions can be. Using the right technology can give you access to current financial and operational information, making it easier to understand what is happening in the business and respond sooner.

Processes and systems drive your business, so it’s worth reviewing whether they’re documented, current and still working the way you need them to. Some processes may still be followed simply because they’ve always been done that way. Others may have changed over time while the written procedure, app setup or approval process has stayed the same.

Business technology now covers far more than accounting software. Payroll, expense capture, approvals, inventory, job management, customer systems and team communication can all form part of the way your business operates. When the right apps are connected properly, information can move between systems with less manual entry and fewer opportunities for mistakes.

This is where the setup matters. Adding another app doesn’t automatically improve a process. The app needs to suit the way your business works, connect with the systems you already use and give the right people access to the information they need.

First Class Accounts Ovens & Murray works with business owners to review business apps, identify unnecessary manual work and duplicate data entry, and help set up systems that support accurate bookkeeping, reliable payroll and useful business information.

Ten ways technology can improve your business

Using technology well can help you to:

1. Make your business data accessible from the cloud

Cloud accounting gives authorised users access to current financial information from wherever they’re working. This can make it easier to check bank balances, outstanding invoices, bills, payroll information and reports without waiting for files to be sent or manually updated.

Examples include Xero, MYOB Business and QuickBooks Online.

Access to current data also supports better cash flow management. When your bookkeeping is up to date, you have a better view of what is due to come in, what needs to be paid and where cash may be under pressure.

2. Reduce manual work and repetitive tasks

Repetitive administration can take up a surprising amount of time. Workflow tools can help assign tasks, track progress, create recurring processes and automate routine steps. Approval apps can also reduce manual follow up by giving businesses a set process for reviewing and approving bills or purchases.

Examples include Asana for task workflows and ApprovalMax for financial approval workflows.

The aim is to remove unnecessary steps while keeping the controls your business needs. Before automating a process, it’s worth checking that the process itself still makes sense.

3. Capture receipts and expenses more efficiently

Taking a photo of a receipt or forwarding an invoice to an expense capture app can reduce manual data entry and help keep source documents connected to the relevant transaction.

Dext can capture information from receipts, bills and invoices and send that information through to compatible accounting software.

Reducing manual entry can save time for the business and your bookkeeper while giving you better records to support reconciliations, BAS preparation and reporting.

4. Connect your apps to reduce double handling

When systems are disconnected, the same information may be entered more than once. Integrating compatible apps can allow data to move between your accounting software and other systems such as inventory, payroll, point of sale, job management or expense capture.

The Xero App Store includes apps covering areas such as inventory, reporting, payroll, time tracking, ecommerce and bills, giving businesses the option to connect software that suits the way they operate.

The value comes from choosing integrations that suit your actual process. First Class Accounts Ovens & Murray can help review how your current apps work together and where a better connection could reduce administration or improve the quality of your bookkeeping data.

5. Collaborate with your team across different locations

Shared communication and document tools make it easier for teams to work from the same information, whether they’re in the same office or spread across different locations. They can also reduce long email chains and help keep project conversations, files and decisions together.

The important part is deciding where information should live and how each system should be used. Adding more communication channels without agreed processes can simply move the administration somewhere else.

6. Use online meetings when they make practical sense

Online meetings are useful for working with advisers, suppliers, clients and team members when meeting in person would add unnecessary travel or delay. They can also make regular check-ins easier to schedule when people are working from different locations.

They are now a normal part of business operations and can be particularly useful when a business works across multiple locations or needs regular contact with external advisers.

7. Improve employee onboarding and payroll information

Digital onboarding can help collect employee details, bank information, tax information, super details and employment documents in a more structured way. When the information flowing into payroll is complete and accurate, there is less risk of having to correct details later.

Payroll technology has become even more important in 2026. Since 1 July 2026, Payday Super requires employers to pay super with each pay cycle, with contributions generally needing to reach an employee’s super fund within seven business days of payday.

Your payroll system, onboarding process and bookkeeping records therefore need to work together so employees are paid correctly, super is processed within the required timeframe and business records remain current.

First Class Accounts Ovens & Murray can also help businesses review payroll processes and the systems supporting them, particularly where information is being transferred manually between different platforms.

8. Monitor inventory and the cash tied up in stock

Inventory software can show what is in stock, what has been committed, what is on order and where stock is located. Better inventory information can help a business make more informed purchasing decisions and reduce the amount of cash sitting in stock that is moving slowly.

For businesses carrying inventory, this information also affects bookkeeping and reporting. Connecting inventory systems with accounting software can reduce rekeying and help keep sales, purchases and stock values aligned.

This creates an important link between business technology and cash flow. Accurate inventory information can help you understand where money is tied up and make purchasing decisions using current data.

9. Keep useful customer information in one system

Point of sale and customer management systems can store purchase history, contact details and other information that helps staff provide a more consistent customer experience. They can also connect sales activity with inventory and accounting systems, giving the business a more complete view of what is happening.

Depending on the business, a point of sale or customer system may also feed sales, payments, inventory and other information into accounting software, reducing the amount of information that needs to be entered separately.

10. Build systems that can support business growth

As a business grows, the volume of transactions, payroll, customers, suppliers and internal tasks usually grows with it. Documented processes and well connected systems can make it easier to handle that extra activity without relying on one person to remember each step.

Technology should support the process you want the business to follow. The right setup may include accounting software, payroll, expense capture, approvals, inventory, job management or other industry specific apps, depending on how the business operates.

First Class Accounts Ovens & Murray can help assess the apps you’re using, identify where processes can be improved and support the setup and integration of tools that suit your business.

Make your technology work with your business

Using technology well can improve how your business operates, from the accuracy of your bookkeeping data to the way payroll, expenses, approvals, inventory and reporting are handled. The harder part is often choosing which systems are worth using, deciding how they should connect and making sure the setup matches the way your business actually works.

It’s also worth reviewing your technology regularly. Businesses change, staff responsibilities change and software features change. An app that suited the business two years ago may still be the right choice, although the way it’s configured or used may need attention.

If you’re spending too much time entering the same information twice, chasing approvals, fixing data problems or working around systems that no longer suit the business, First Class Accounts Ovens & Murray can help review your current setup and identify practical improvements.

Talk to First Class Accounts Ovens & Murray about the business apps, bookkeeping systems and processes you’re using, and where technology could save time, reduce errors and give you more useful information.

Frequently asked questions

What business technology should a small business use?

The right technology depends on how the business operates. A useful starting point is accounting software, then adding apps for areas such as expense capture, payroll, approvals, inventory, job management or point of sale where they solve a specific process problem. The systems should suit the business and connect properly wherever possible.

How can business apps improve bookkeeping?

Connected business apps can reduce duplicate data entry and move information from operational systems into accounting software more efficiently. This can improve the quality and timeliness of bookkeeping data, provided the integrations are set up correctly and the information is reviewed regularly.

Can a bookkeeper help choose and set up business apps?

Yes. A bookkeeper who understands your day to day processes can help identify where an app may save time, reduce manual work or improve the flow of information into your accounting system. First Class Accounts Ovens & Murray provides business app advisory, setup, integration and support alongside bookkeeping and payroll services.

10 business improvement strategies to build a better business

What are you doing to build a better business?

Running a business takes commitment, and being good at what you do is only part of it. You might be excellent at your trade, profession or service, while running the business around that expertise requires a completely different set of skills.

Building a better business usually comes from making practical improvements over time. You need to know what you want to achieve, understand where the business is now, have reliable information available and make sure your systems support the way you want to operate.

Your bookkeeping plays an important part in this. Current, accurate records help you understand what is coming in, what is going out, what needs to be paid and what your numbers are showing you.

When that information is supported by efficient processes and suitable business apps, you have a stronger base for deciding what needs attention and where improvements could be made.

Keep developing the way you run the business 

You are likely an expert in what you do. That does not automatically make you an expert in payroll, cash flow, bookkeeping systems, business apps, people management or the other areas involved in running a business.

Taking time to work on those areas matters.

Think about where your time is being spent and where problems regularly occur. You may be entering the same information into several systems, spending too long preparing payroll information, waiting for approvals before invoices can be paid, or relying on manual processes that were suitable when the business was smaller.

Learning where the business could work better is part of running it well.

Sometimes the answer is a better process. Sometimes an existing app needs to be set up differently. In other cases, the business may have outgrown the software it currently uses.

First Class Accounts Ovens & Murray can help review how your bookkeeping and business apps work together, identify unnecessary manual processes and help implement systems that better suit the way your business operates. This fits directly with its focus on improving processes and helping businesses choose and use technology that suits their workflow.

So, what can you do to build a better business?

These ten steps give you practical areas to review in your business and identify where improvements could be made.

1. Get specific about what you want

Understanding what you want from the business gives you something meaningful to work towards.

Your goals might include increasing revenue, improving profit, strengthening cash flow, employing another person, reducing the amount of administration you personally handle or creating more time for family and life outside the business.

Make those goals specific enough that you can measure whether things are changing.

If you want to increase revenue, determine what increase you are aiming for and over what period. If cash flow is the issue, identify what needs to improve. You might need customers to pay sooner, invoices to be raised more quickly, supplier payments to be planned differently or upcoming tax and super commitments to be allowed for earlier.

Your bookkeeping needs to support those goals. Reliable financial information gives you a starting point, allows you to measure progress and helps you see when actual results differ from what you expected.

2. Be open to changing the way things are done

Businesses change, and the systems that worked when you started may become less suitable as your team, customer base and workload grow.

Review how work actually moves through the business.

Look at where information is entered more than once, where staff are relying on spreadsheets to make different systems work together, where approvals regularly cause delays and where manual administration is taking more time than it should.

Business apps can improve these processes when they are chosen and implemented properly. The right solution depends on your industry, workflow, existing software and what you are trying to fix.

Adding more software without first understanding the problem can create another layer of work.

First Class Accounts Ovens & Murray provides business app advice based on how a business actually operates. This can include reviewing existing apps, identifying suitable alternatives, integrating systems and helping your team understand how to use them properly.

If a process in your business seems to take far longer than it should, it is worth looking at the process before accepting that this is simply how the task has to be done.

3. Define where the business is now

Before deciding what needs to improve, establish where the business is now.

A SWOT analysis can still be useful for looking at strengths, weaknesses, opportunities and threats, although your financial information should form part of the assessment as well.

Look at revenue, expenses, profit, cash available, outstanding customer invoices and upcoming supplier payments. Include payroll, super and tax commitments so you have a realistic picture of what the business needs to fund.

This is also a good point to ask whether your bookkeeping is current enough to give you information you can use.

Profit alone does not tell you whether there is enough money available to meet upcoming payments. A business can be profitable while experiencing cash flow pressure because of the timing between money coming in and payments going out.

Accurate bookkeeping helps you see those timing issues. It also gives you and your accountant better information to work with when reviewing performance, planning ahead or making decisions about the business.

4. Make a practical plan

Once you know what you want and where the business currently stands, decide what needs to happen next.

Your plan needs to identify what you are trying to achieve, the actions required, who is responsible and how you will measure progress.

Financial planning needs to sit alongside the operational plan.

A budget helps establish how you intend to use the money available to the business. Forecasting helps you look ahead using current information and what you know about future activity. Cash flow forecasting helps you understand when money is expected to arrive and when payments are due.

This becomes particularly useful when planning payroll, supplier payments, tax obligations, equipment purchases or periods where income regularly changes.

The quality of that planning depends on the quality of the information underneath it. If transactions have not been reconciled, expenses are incorrectly coded or outstanding invoices are not being monitored, the numbers you are using may give you an incomplete picture.

Keeping the books current means your plans can be compared with what is actually happening.

5. Get your roles, responsibilities and processes right

People need to understand what they are responsible for and how their work connects with the rest of the business.

This includes financial administration.

Someone needs to be responsible for invoicing, approving purchases, providing payroll information, following up outstanding accounts and making sure records reach the right person when they are needed.

Documenting these processes reduces reliance on knowledge held by one person. It also helps identify where responsibilities overlap or where an important task has no clear owner.

Payroll deserves particular attention.

Since 1 July 2026, employers generally need super guarantee contributions to reach an employee's super fund within seven business days of payday, with extended timeframes applying in some circumstances. This means payroll information, software and processes need to support faster identification and correction of errors.

First Class Accounts Ovens & Murray provides payroll support as part of its bookkeeping services, helping businesses manage payroll and super accurately and on time. Its 100 per cent contract service model also means agreed work is covered without relying on one individual being available

6. Be a better leader

Good leadership includes giving people the information, systems and support they need to do their jobs properly.

Make responsibilities clear, communicate expectations and look at whether the processes around your team are helping or hindering them.

Paying employees accurately and on time is one practical example. Providing systems that reduce unnecessary administration is another.

Leadership also means recognising where your own time is best spent.

Doing everything yourself can become expensive when your time is being taken away from customers, employees, business development or the work only you can do.

The right person doing the right job generally gives the business a better result. That may mean delegating internally, working with an external specialist or using technology to remove administration that no longer needs to be completed manually.

7. Have someone independent keep you accountable

Work inside the business can easily take priority over improvements you intended to make to the business.

Having someone independent involved can help keep those actions moving.

Depending on what you are working on, that person might be a mentor, business adviser, accountant, bookkeeper or another experienced business owner.

Different advisers also have different roles.

Your accountant may be helping with tax planning, business structure and broader financial matters. Your bookkeeper is working much closer to the daily financial information that feeds into those conversations.

When the bookkeeping is current and accurate, your accountant has better information available and you have a better understanding of what has been happening between meetings.

First Class Accounts Ovens & Murray can help you understand what your bookkeeping reports are showing, identify information that needs attention and make sure your accountant receives accurate records when they need them. Supporting business owners to understand their numbers and work effectively with their accountant is one of its core content areas.

8. Build useful business relationships

Strong business relationships give you access to experience, specialist knowledge, referrals and people you can turn to when you need another perspective.

Build relationships with people in your industry, other business owners and the advisers who support your business.

Your bookkeeper, accountant, insurance adviser, solicitor and other specialists each bring different knowledge. Having these relationships established before you need help can make it easier to deal with an issue when it arises.

Community involvement can also be part of building those relationships. Contributing your knowledge, time or support to organisations you care about connects you with people outside your immediate business circle and keeps your business connected to the community around it.

Useful networks develop over time. Focus on genuine relationships where people know what you do, understand your business and are willing to share knowledge and experience.

9. Monitor what is actually happening

Setting goals has limited value if you do not check what happens afterwards.

Choose measures that tell you something useful about your business.

Revenue may be important, although looking at revenue by itself can hide changes in margins, expenses or cash flow. Depending on the business, you might also track gross profit, expenses, cash available, outstanding invoices, debtor days, payroll costs, job profitability or performance against budget.

Regular bookkeeping makes this possible.

When bank accounts are reconciled, transactions are coded correctly and outstanding invoices are being monitored, you can review current information instead of waiting until months later to see what changed.

This also makes conversations with your accountant more useful because both of you are working from reliable figures.

First Class Accounts Ovens & Murray provides regular bookkeeping and reporting support so business owners can see what their numbers are showing and identify areas that may need further investigation. Reliable bookkeeping, reconciliations and end of month reporting are central to this service.

10. Make sure the business leaves room for life outside it

One of the reasons people start a business is often to have more control over how they work and what the business allows them to do outside work.

It is worth checking whether that is still happening.

If evenings and weekends are regularly spent catching up on administration, fixing payroll problems, chasing information or manually transferring data between systems, there may be a process that needs attention.

Look at what genuinely requires your involvement and what could be handled more efficiently by another person or through a better system.

Your time outside the business matters as well. Family, community commitments and personal interests should not continually be pushed aside because administration is taking longer than it should.

Getting the right people, processes and systems in place can help the business operate more efficiently while giving you more control over where your own time goes.

Keep improving how the business works

Building a better business is an ongoing process. Goals change, teams grow, technology changes and processes that once worked well may eventually need another look.

The important part is having reliable information and systems that help you see what is happening.

Accurate bookkeeping gives you current financial data. Cash flow forecasting helps you plan upcoming commitments. Reliable payroll processes help make sure your employees and their super are paid correctly and on time. Suitable business apps can reduce unnecessary administration and improve how information moves through the business.

These areas work together. When the underlying information is accurate and the processes around it are efficient, you are in a better position to decide what should happen next.

First Class Accounts Ovens & Murray works with business owners across bookkeeping, payroll, reporting and business app advice, helping make sure the information and systems behind the business are working as they should.

If your bookkeeping, payroll, reporting or business systems are taking more time than they should, contact First Class Accounts Ovens & Murray to talk about where the problems are occurring and what could work better.

Frequently asked questions

How can I improve the way my business operates?

Start by identifying where time, money or information is being lost. Review your financial data, cash flow, responsibilities, processes and business apps, then identify specific improvements you can measure. Working on one problem at a time also makes it easier to see whether the change is producing the result you expected.

Why is bookkeeping important when building a better business?

Accurate bookkeeping gives you current information about revenue, expenses, cash flow, outstanding invoices and upcoming commitments. This information helps you measure performance, prepare forecasts, work effectively with your accountant and make informed decisions about what needs attention.

How can business apps improve business processes?

Suitable business apps can reduce manual data entry, improve workflows and help information move between different parts of your business. The app needs to suit your industry, work with your existing systems and solve a specific problem. First Class Accounts Ovens & Murray can help review, select, implement and integrate business apps so they support the way your business actually works.

How to set sales targets using accurate bookkeeping data

Setting sales targets gives your business something measurable to work towards. It can help you plan sales activity and give you a benchmark against which actual results can be reviewed.

The quality of the information you use to set those targets matters.

If your bookkeeping is current, you can see what the business has actually sold, when sales occurred, which periods were stronger or quieter and how much money is still owing from customers.

This gives you a more reliable starting point than choosing a percentage increase from last year and hoping the numbers work.

Regular bookkeeping and reporting also mean you can review your actual sales against your targets throughout the year rather than waiting until much later to discover the result was different from what you expected.

Review your sales targets as your business changes

Sales targets may need to change as the business changes.

Your sales can be affected by seasonal demand, customer changes, staffing levels, pricing changes or simply a stronger or quieter period than expected.

This is where current bookkeeping becomes useful.

Rather than relying on what you think has happened, your accounting records can show actual sales for the period and how they compare with previous months or years.

Regular reporting gives you the opportunity to compare those results against your sales targets and identify differences earlier. You can then decide whether the target still makes sense or whether there are other areas of the business that need further investigation.

First Class Accounts Ovens & Murray helps keep this information current so you are reviewing actual business numbers rather than working from incomplete records.

Understand the numbers behind your sales

Before setting a sales target, it helps to understand what has already been happening in the business.

Your bookkeeping records can show previous sales, monthly or seasonal patterns, outstanding customer invoices and changes in revenue over time.

Depending on your accounting system and the information being recorded, you may also be able to review sales by customer, product, service or another category that is useful to your business.

This information gives you a factual starting point for setting future targets.

It also gives your accountant, business adviser or internal management team better information to work with when broader planning decisions need to be made.

The role of First Class Accounts Ovens & Murray is to make sure the underlying bookkeeping is accurate, current and structured in a way that gives you useful information from your accounts.

Important steps for setting sales targets

Sales targets are more useful when the information behind them is reliable.

Before setting or reviewing your targets, make sure your bookkeeping is current, bank accounts are reconciled and sales have been recorded correctly.

You can then use that information to look at previous performance and compare future targets against actual results.

Understand what your sales numbers are showing you

Turnover is one of the figures you may use when setting sales targets, but it should be viewed alongside the rest of your financial information.

Current bookkeeping allows you to see the sales that have been recorded for a particular month, quarter or year and compare them with previous periods.

Your profit and loss report can then provide additional information about income and expenses for the same period.

First Class Accounts Ovens & Murray can make sure transactions are recorded correctly and reports are kept current so you have accurate information available when reviewing sales performance.

Where more detailed advice is required around profit targets, margins, pricing or broader financial strategy, those current records also give your accountant reliable figures to work from.

Make your targets SMART

Sales targets should be SMART: Specific, Measurable, Achievable, Relevant and Time bound.

Once a target has been set, your bookkeeping and reporting can help you measure progress against it.

Rather than waiting until the end of the financial year, you may choose to review sales monthly or quarterly depending on how your business operates.

For example, if you have set a monthly sales target, regular reporting can show the sales recorded for that month and how the result compares with your target.

The important part from a bookkeeping perspective is having current records available when you need them.

If several months of transactions are still waiting to be entered or reconciled, it becomes much harder to know whether the business is tracking as expected.

Track the sales information available in your systems

Your accounting records can provide more information than a single total sales figure.

Depending on the way your accounting system has been set up, you may be able to review sales by customer, service, product, location or another category relevant to your business.

You can also review outstanding invoices and customer payment patterns.

This information can help you understand where recorded revenue is coming from and whether customers are paying within expected timeframes.

Good system setup matters here. First Class Accounts Ovens & Murray works with accounting platforms and connected business apps, helping businesses establish processes that reduce duplicated work and improve the quality of the information being recorded.

When systems are connected properly, it becomes easier to access useful information without manually piecing it together from different places.

Use historical information when forecasting sales

Previous sales data can provide a useful starting point when preparing a sales forecast.

Current bookkeeping allows you to compare sales across different periods and identify patterns that may be relevant when looking ahead.

You might compare this month with the same month last year, review quarterly results or look at how sales changed during particular seasonal periods.

The figures can then be used as part of your forecasting process alongside other information you know about the business.

First Class Accounts Ovens & Murray can help make sure the historical information you are using is complete and current. If the bookkeeping is behind or transactions have been recorded inconsistently, your historical comparisons may be less useful.

Fill the gaps in your financial information

Before relying on your sales figures, check that the underlying bookkeeping is complete.

Are all sales entered? Have bank accounts been reconciled? Are customer payments allocated correctly? Are outstanding invoices genuinely still outstanding?

Small gaps in the records can change what your reports are telling you.

For example, an invoice may appear overdue because a payment has not yet been allocated correctly. Sales may appear lower because transactions are still waiting to be entered.

Keeping the accounts current helps reduce these gaps and gives you better information when reviewing your sales targets.

This is a core part of reliable bookkeeping. First Class Accounts Ovens & Murray keeps the day to day financial records up to date so business owners do not have to spend time trying to work out whether the figures in front of them are complete.

Connect sales targets to cashflow

Reaching a sales target does not necessarily mean the same amount of money has arrived in your bank account.

If customers are invoiced on payment terms, there can be a delay between recording the sale and receiving the money.

Your bookkeeping records can help you see both sides of this.

Sales reports show the revenue being recorded, while your accounts receivable information shows what customers still owe and when those invoices are due.

At the same time, payroll, super, suppliers, GST, PAYG and other commitments continue to fall due.

This is why sales information and cashflow should be reviewed together.

First Class Accounts Ovens & Murray helps maintain accurate debtor records, payment information and bookkeeping reports so you have a better picture of what has been sold, what has been paid and what is still outstanding.

Review targets using current bookkeeping data

Sales targets become much easier to monitor when your bookkeeping is up to date.

You can compare current sales against previous periods, review outstanding invoices and access reports without first having to catch up months of transactions.

This also means information is available when you need to speak with your accountant, review your budget or make other business decisions.

Reliable bookkeeping is the foundation underneath that reporting.

With First Class Accounts Ovens & Murray managing the day to day bookkeeping, reconciliations and reporting, you have current financial information available throughout the year rather than having to reconstruct it later.

Keep the numbers behind your sales targets current

You can set the sales target yourself. The important part is having accurate information available to measure what actually happens.

First Class Accounts Ovens & Murray can help keep your bookkeeping current, reconcile your accounts, maintain debtor information and provide regular reporting so you can see how sales are tracking over time.

If your financial records are behind or your reports are difficult to rely on, talk to us about improving the bookkeeping and reporting behind your sales targets.

Frequently asked questions

How can a bookkeeper help with sales targets?

A bookkeeper can make sure the financial information used to review sales targets is current and accurate. This includes recording sales, reconciling accounts, maintaining debtor information and producing regular reports that show actual business performance.

What bookkeeping reports are useful when reviewing sales targets?

Sales reports, profit and loss reports and accounts receivable reports can all provide useful information. The reports that matter most will depend on how your business operates and what information is being recorded in your accounting system.

Why should sales targets be reviewed alongside cashflow?

A sale may be recorded before the customer actually pays. Reviewing sales alongside accounts receivable and cashflow information helps you see how much has been sold, how much money has been received and what is still outstanding.

Closing a business: what you need to do

Closing a business involves a number of financial, payroll, tax and administrative steps that need to be completed before everything can be wrapped up.

You may have decided to close because you are retiring, changing direction or simply no longer want to operate the business. You may have sold the business to someone else. In other situations, the decision may be driven by financial pressure.

Whatever the reason, stopping work does not automatically bring your business obligations to an end.

Your bookkeeping needs to be brought up to date, employees need to receive their correct entitlements, tax and reporting obligations need to be completed and registrations may need to be cancelled.

The exact process will depend on your business structure and whether you are closing, selling or dealing with financial difficulty, so it is worth involving your bookkeeper and accountant early.

Get your bookkeeping up to date 

If you are closing your business or the business has been sold, you need to get all your bookkeeping up to date so your accountant has accurate information to prepare the final accounts and deal with your tax obligations.

This includes reconciling bank accounts, credit cards and loan accounts, reviewing outstanding invoices and bills, recording any remaining transactions and making sure assets and liabilities are properly reflected in your accounting system.

Outstanding customer invoices also need attention. You need to know what money is still expected to come in, which bills remain unpaid and whether there is enough cash available to meet the final commitments of the business.

Accurate bookkeeping becomes particularly important at this point because your accountant will be relying on those records to determine what still needs to be reported, paid or addressed before the business is closed.

If your bookkeeping has fallen behind, getting the records caught up before registrations and accounts start being cancelled can make the closing process considerably easier.

Give your accountant the information about the sale 

If you have sold the business, your accountant will also need the relevant information about the sale.

This can include the sale contract, settlement documents and details about assets, stock or other items included in the transaction. Your accountant can then determine how the sale needs to be treated for tax purposes, including whether GST or capital gains tax may apply.

Your bookkeeping records should support the information contained in the sale documents so there is a reliable financial record of what happened before and at settlement.

If there are unreconciled accounts, missing transactions or outstanding invoices sitting in the accounting system, dealing with them before the final accounts are prepared can save a great deal of unnecessary backtracking.

Finalise employee payments and payroll 

If you have employees, payroll needs particular attention when closing a business.

Employees need to receive their final pay, including any outstanding wages and applicable entitlements. Depending on the employee and their circumstances, this may include unused annual leave, payment in lieu of notice, redundancy pay and certain long service leave entitlements.

Closing a business can also trigger redundancy obligations. Awards and enterprise agreements may contain consultation requirements, so employers should check the requirements that apply to their employees before employment ends.

Payroll reporting also needs to be finalised correctly through Single Touch Payroll.

Super needs to be included in the process as well. From 1 July 2026, Payday Super requires employers to pay super in connection with each payday, with contributions generally needing to reach the employee's super fund within seven business days. This makes accurate payroll and super processing particularly important during the final weeks of a business.

Payroll should be completed before access to payroll software, banking arrangements and other systems is removed.

Work through your registrations and final obligations 

Your bookkeeper and accountant can help you work through the registrations and reporting obligations that need attention when a business closes.

Depending on the structure and circumstances of your business, this may include:

• Completing outstanding BAS, PAYG withholding and other reporting obligations.
• Cancelling PAYG withholding when it is no longer required.
• Cancelling GST registration. If you have sold or permanently closed the business, GST registration generally needs to be cancelled within 21 days.
• Completing the final BAS and making any required GST adjustments, including adjustments relating to business assets that are retained after GST registration ends.
• Cancelling your Australian Business Number. The ABN generally needs to be cancelled within 28 days of permanently stopping business activities, although outstanding reporting and payment obligations should be dealt with first.
• Cancelling a registered business name with the Australian Securities and Investments Commission if it is no longer required.
• Deregistering a company where appropriate. A company continues to have legal obligations while it remains registered with ASIC, including its annual review obligations.
• Lodging final tax returns and dealing with remaining tax liabilities.
• Cancelling licences, permits, subscriptions and other services associated with the business.
• Reviewing insurance requirements, including whether run off insurance may be needed to cover claims made after the business has closed.

The order matters. Cancelling registrations or access to systems too early can make it more difficult to complete outstanding lodgements and reporting.

Before cancelling your ABN, GST registration or company registration, check what still needs to be completed with your accountant or other relevant adviser.

If you are preparing to close or sell your business and need help getting your bookkeeping, payroll and financial records up to date, First Class Accounts Ovens & Murray can help you work through what needs to be completed before your accountant finalises the business. Get in touch.

Keep the records you still need 

Closing the business does not mean the records can be deleted.

Business owners still have record keeping obligations after the business stops operating. Most business and tax records generally need to be kept for at least five years, although some records may need to be retained longer depending on what they relate to.

Employment records also have separate requirements. Employers generally need to retain time and wage records for seven years.

Before closing accounting software, payroll systems, document storage or other business apps, make sure the records you are legally required to retain have been exported or stored somewhere secure and accessible.

This is also a good opportunity to review who still has access to your systems and remove access that is no longer required.

When a business is in financial difficulty 

Sometimes a business reaches a point where cashflow, debt or ongoing losses make it difficult to continue.

Good financial records can help identify warning signs earlier. If reconciliations, accounts payable, accounts receivable and reporting are current, you and your advisers have more reliable information about what the business owes, what it is owed and whether upcoming commitments can be met.

If the business is struggling to pay debts when they fall due, professional advice should be sought as early as possible.

The options available depend on your business structure and financial position. For a company, these can include restructuring, voluntary administration or liquidation. Some eligible companies with debts of less than $1 million may be able to use the small business restructuring process.

A sole trader does not enter company liquidation. Because the individual and the business are legally connected, personal insolvency processes such as bankruptcy may apply instead.

Your accountant, lawyer or registered insolvency practitioner can advise on which options are appropriate for your circumstances.

What happens if a company enters liquidation 

If a company enters liquidation, a registered liquidator takes control of the company and its affairs are wound up.

The liquidator may need access to financial records, accounting software and information held by the company's bookkeeper and accountant. Having complete and current records can make it easier to provide the information required.

Any request for information should be verified before access or confidential records are provided. ASIC maintains company information and published insolvency notices that can be used to confirm whether an external administrator has been appointed. The correct company identifier is the Australian Company Number, or ACN.

Once a liquidator has been appointed, they control the liquidation process. Any further bookkeeping or accounting work associated with the company may therefore need to be discussed with and authorised by the liquidator.

The earlier accurate financial information is available, the easier it is for the business owner and their professional advisers to understand the position and respond to what is required.

Getting the financial side of closing a business in order 

Closing or selling a business involves a lot of moving parts, and the bookkeeping needs to stay accurate right through to the final transactions.

Getting the accounts reconciled, payroll completed, outstanding invoices and bills reviewed, records retained and final information prepared for your accountant gives everyone involved reliable information to work from.

First Class Accounts Ovens & Murray can help make sure your bookkeeping and payroll records are in order and work with your accountant as the business is wound down. If you are closing or selling a business and need support getting the financial side organised, get in touch.

Frequently asked questions about closing a business

What do I need to do when closing a business in Australia?

You generally need to finalise your bookkeeping, pay outstanding employee entitlements, complete tax and reporting obligations, cancel relevant registrations, deal with business assets and liabilities, and retain the records you are required to keep. The steps will vary depending on your business structure and circumstances.

When should I cancel my ABN when closing a business?

An ABN generally needs to be cancelled within 28 days of permanently stopping business activities. Before cancelling it, make sure outstanding lodgements, reporting and payment obligations have been completed. PAYG withholding should also be cancelled before the ABN if it applies to your business.

Do I need to cancel GST when I close my business?

If you permanently close or sell your business, your GST registration generally needs to be cancelled within 21 days. You may also need to complete a final BAS and make GST adjustments for business assets.

What happens to employees when a business closes?

Employees need to receive their final pay and applicable entitlements. Depending on the circumstances, this can include outstanding wages, unused annual leave, notice, redundancy pay and certain long service leave entitlements. Employers also need to complete payroll reporting and super obligations.

How long do I need to keep business records after closing?

Most business and tax records generally need to be retained for at least five years. Employee time and wage records generally need to be retained for seven years. Some records may need to be kept for longer depending on the circumstances.

Is closing an insolvent company the same as closing a solvent business?

No. If a company cannot pay its debts when they are due, insolvency rules apply and professional advice should be sought promptly. Depending on the company's circumstances, options may include small business restructuring, voluntary administration or liquidation.

How to take control of your business finances

Growth is not the only measure of a successful business. You may want a business that provides a reliable income, supports your employees, gives you time with your family and allows you to contribute to your community. You may also want fewer financial surprises and more confidence that upcoming payments are covered.

Whatever you want your business to provide, having control depends on accurate information and practical planning. You need to understand where the business is now, where you want it to go and whether the money coming in will support the commitments you have made.

Three tools can help you do this:

1. A practical business plan

2. A cash flow forecast

3. Regular financial reporting and accountability

These tools work together. Your business plan sets the direction, your forecast tests whether the numbers support that direction, and regular reporting shows whether the business is progressing as expected.

For these tools to be useful, they need to be built on accurate, current bookkeeping. When transactions are missing, accounts have not been reconciled or payroll liabilities are incomplete, the reports cannot give you a reliable picture of the business.

A practical business plan

Your business plan does not need to be a lengthy document that is written once and then forgotten. It needs to be practical, easy to review and relevant to the decisions you make throughout the year.

A concise plan can define what you want from the business, including the income it needs to provide, the time you want to spend working, the responsibilities you want to delegate and the outcomes you want to achieve.

It should also identify the financial and operational measures that will show whether you are progressing. These may include revenue, gross profit, operating expenses, outstanding invoices, available cash, payroll costs, job profitability or another measure that is relevant to the way your business operates.

The measures you choose should help you make decisions. Tracking a large number of figures can create more work without giving you useful information. It is usually better to choose a smaller group of measures that relate directly to your priorities and review them consistently.

Your annual goals can then be divided into quarterly actions. These might include improving the invoicing process, reducing overdue accounts, reviewing supplier costs, implementing a more suitable business app, improving payroll procedures or establishing a regular reporting schedule.

A plan also needs to reflect the resources available to the business. Before committing to a new employee, piece of equipment, service or project, consider the effect on cash flow, workload and existing obligations. Your current financial information can help you assess whether the business is ready to proceed.

First Class Accounts Ovens & Murray can help ensure the financial information used in your planning is accurate and up to date. We can also help you identify the reports and business data that are most useful for monitoring the plan.

Use a cash flow forecast throughout the year

A cash flow forecast estimates when money is expected to enter and leave your business. It can help you determine whether you are likely to have enough cash available to pay employees, suppliers, tax obligations, superannuation, loan repayments and other operating costs when they are due.

A forecast should be useful to you throughout the year, rather than prepared only when a bank or lender requests one. It can identify periods when cash may be tight, show when significant payments will occur and help you plan before a shortfall creates pressure.

Your forecast may include:

1. Expected customer payments

2. Regular operating expenses

3. Wages and payroll related costs

4. Superannuation payments

5. GST, PAYG withholding and other ATO obligations

6. Loan and finance repayments

7. Planned purchases or investments

8. Owner drawings or distributions

9. Seasonal changes in income and expenses

From 1 July 2026, Payday Super changes the timing of superannuation payments for employers. Super guarantee payments move closer to the payroll cycle rather than being managed as a quarterly outgoing. This makes it important to include superannuation in short term cash flow planning and ensure payroll processes, software and payment arrangements are ready for the change.

The forecast should also allow for realistic payment behaviour. An invoice issued today does not necessarily become available cash today. Customer payment terms, overdue accounts, seasonal slowdowns and unexpected costs can all affect the timing of cash receipts and payments.

It is useful to prepare different scenarios where the outcome is uncertain. You might assess what happens if revenue is lower than expected, a major customer pays late, expenses increase or a planned purchase is brought forward. This allows you to identify options before you need to use them.

A forecast loses value when it is based on incomplete records or left unchanged for the rest of the year. It should be updated using actual results so that it continues to reflect current trading conditions.

First Class Accounts Ovens & Murray can help you maintain accurate records, track upcoming commitments and prepare useful cash flow information. We also provide forecasting support using business apps such as Futrli to give you clearer visibility over future performance. This gives you a stronger basis for scheduling payments and discussing future decisions with your accountant or other advisers. 

Review accurate reports regularly

The value of a business plan and cash flow forecast comes from using them. Regular reporting allows you to compare actual results with your expectations and determine whether your actions are producing the intended outcome.

Depending on the business, reporting may be completed monthly or more frequently. The reporting schedule should give you enough time to respond when something changes.

Useful reports may include:

1. Profit and loss reports

2. Balance sheets

3. Cash flow reports and forecasts

4. Accounts receivable reports

5. Accounts payable reports

6. Payroll and leave liability reports

7. Budget compared with actual results

8. Job, project, department or location performance

Reliable bookkeeping is the foundation of useful reporting. Bank accounts need to be reconciled, transactions need to be categorised correctly and payroll information needs to be complete. Reports produced from inaccurate or outdated records can lead to poor decisions.

Your reports should also help you ask specific questions. If sales have increased but cash has fallen, you may need to review payment timing, stock purchases, expenses or outstanding invoices. If payroll costs have increased, you may need to compare staffing levels, hours worked and revenue. If a service appears profitable, you may need job or project data to confirm whether all associated costs have been included.

The apps used across the business can affect the quality of this information. Accounting software, payroll systems, time tracking tools, job management platforms, inventory systems and point of sale software need to exchange information correctly. Poor setup can create duplicated work, missing data and reporting errors.

First Class Accounts Ovens & Murray can review how your bookkeeping and operational apps work together. We can recommend suitable apps, assist with setup and integration, and provide training so your team understands the required process. The aim is to reduce unnecessary handling and give you more reliable information.

Regular review meetings help ensure that important tasks are completed, financial issues are addressed early and decisions are based on current information. 

Turn your plan into useful financial information

A business plan, cash flow forecast and regular reporting process each serve a different purpose. Together, they help you understand what you want from your business, whether its finances can support that outcome and what needs attention along the way.

They are most useful when the underlying bookkeeping is accurate and completed on time. Regular reconciliations, reliable payroll processing, organised payment information and properly connected apps make it easier to understand what is happening in the business.

First Class Accounts Ovens & Murray provides fully contracted bookkeeping, payroll and business app advisory services. This means the work continues when someone is away, without leaving gaps in your bookkeeping or reporting schedule.

We can help you:

1. Keep your bookkeeping accurate and current

2. Maintain payroll and superannuation records

3. Improve the information used for cash flow planning

4. Prepare regular financial reports

5. Review the apps and processes supporting your financial data

6. Work with your accountant and other advisers when needed

If your reports arrive too late to guide decisions, your forecast is out of date or your financial processes are taking too much time, contact First Class Accounts Ovens & Murray to discuss the support your business needs.

Frequently asked questions about taking control of your business finances

How can I take control of my business finances?

Start with accurate bookkeeping, a practical business plan and a cash flow forecast. Review your actual financial results regularly against your forecast and investigate significant differences before they become larger problems.

What is a business cash flow forecast?

A business cash flow forecast estimates the timing of money coming into and leaving your business. It can help you plan for wages, suppliers, tax, superannuation, loan repayments and other expenses.

How often should a cash flow forecast be updated?

A cash flow forecast should be reviewed regularly and updated when actual income, expenses or payment timing differs from the original assumptions. Monthly reviews may suit some businesses, while businesses with tighter cash flow may need to update the forecast weekly.

What financial reports should a business review?

The reports will depend on the business, but common reports include the profit and loss statement, balance sheet, cash flow report, accounts receivable, accounts payable, payroll liabilities and budget compared with actual results.

Can a bookkeeper help with cash flow management?

A bookkeeper can help keep your financial records current, provide accurate reports, track payment commitments and prepare information for cash flow planning. A registered BAS agent can also assist with relevant BAS services and obligations within the scope of their registration.

How can business apps improve financial reporting?

Appropriate business apps can reduce duplicate data entry and improve the flow of information between invoicing, payroll, job management, inventory, time tracking and accounting systems. The apps need to suit the business and be configured correctly to produce reliable information.

How will Payday Super affect business cash flow?

From 1 July 2026, employers need to manage superannuation payments closer to the timing of employee wages. This means super needs to be included in each payroll cycle’s cash flow planning rather than treated mainly as a quarterly outgoing.

Are your small business systems ready for flexible work?

Flexible work is no longer a new idea for many Australian businesses. For some teams, working from home is part of the usual weekly routine. For others, it only happens when someone is travelling, unwell, caring for family, or needs a quiet day to get through focused work.

Either way, the question for business owners has changed. It is no longer about whether remote work exists. It is about whether your small business systems can support people working from different locations without creating delays, gaps, duplicate admin or unnecessary risk.

If payroll relies on one person being in the office, supplier invoices sit in someone’s inbox, receipts are still being passed around manually, or approvals only happen when someone remembers to ask, flexible work can become harder than it needs to be.

A staff member working from home should not stop bookkeeping, payroll, approvals, reporting or cash flow tasks from moving forward. This is where the right systems matter. Cloud bookkeeping, connected apps, clear processes and reliable support can help your business keep operating whether your team is in the office, at home, or spread across several locations.

Why flexible work needs reliable systems behind it

Flexible work can support staff retention, recruitment and day-to-day productivity, especially when the work can be done from different locations. It can help a business keep good people through changes in family responsibilities, travel, relocation or other personal circumstances.

However, flexible work only works well when the business has structure behind it. If your systems are messy in the office, they are usually harder to manage when people are working remotely.

Common issues include:

1. Invoices waiting for approval because the process is unclear
2. Payroll information being sent through different channels
3. Receipts missing from the accounting software
4. Bank reconciliations falling behind
5. Supplier payments being delayed because only one person knows the process
6. Staff using different versions of the same document
7. Business owners not having access to current numbers when they need them

These issues do more than create admin frustration. They can affect cash flow, payroll accuracy, supplier relationships and business decision-making. When a business owner cannot easily see what has been invoiced, what has been paid, what is due, and what still needs attention, it becomes harder to manage the business properly.

Start with payroll, bookkeeping and approvals

Before allowing work to happen across multiple locations, it is worth reviewing how your business actually operates. This does not need to be complicated, but it does need to be practical.

Start with the work that must happen on time.

Payroll is a good example. If timesheets, leave requests, pay approvals or superannuation information are handled manually, there is a higher risk of delays and mistakes. Your team needs to be paid correctly and on time, regardless of where the person processing payroll is working from.

Bookkeeping is another area to review. If receipts, supplier invoices, bank transactions or approvals are sitting outside your accounting software, it can be difficult to keep your records accurate. This can affect BAS preparation, reporting, cash flow planning and your ability to answer simple questions about the business.

You may also need to review:

1. Who has access to each system
2. How invoices are approved
3. How timesheets are submitted
4. How payroll changes are recorded
5. How staff expenses are captured
6. How supplier payments are scheduled
7. How financial documents are stored
8. How reporting is completed each month
9. How backup support works when someone is away

The goal is to make sure the business does not rely on memory, inboxes or one person knowing how everything works.

Review your business apps before adding more software

Business apps can make flexible work much easier, but only when they are chosen and set up properly.

For many businesses, cloud accounting software is the starting point because it gives the right people access to current financial information. From there, connected apps may support payroll, rostering, time tracking, job management, inventory, document collection, approvals and reporting.

The important part is choosing apps that suit the way your business works. Adding more software does not automatically fix the problem. In some cases, it creates more admin because the systems do not share information properly, or staff are unsure which tool to use for each task.

A better approach is to review your current process first.

Ask yourself:

1. What is being done manually?
2. Where are mistakes happening?
3. Which tasks are being repeated?
4. Where does information get stuck?
5. Which reports are difficult to produce?
6. Which processes rely too heavily on one person?

Once you understand those issues, it becomes easier to choose apps that reduce manual handling, improve accuracy and give better visibility across the business.

First Class Accounts Ovens & Murray provides business app advisory and implementation support to help business owners assess their current systems, choose suitable apps, and set them up properly. This can include app selection, integration support, training and ongoing process improvement.

Keep business information secure

Remote and flexible work can also increase the need for stronger cyber safety practices. If staff are accessing business systems from home, while travelling, or from different devices, you need to know how business information is being protected.

This may include:

1. Using secure passwords and multi factor authentication
2. Limiting access to the systems each person actually needs
3. Removing access quickly when someone leaves the business
4. Keeping software and devices updated
5. Making sure business data is backed up
6. Avoiding public internet connections for sensitive business tasks
7. Having clear rules for saving and sharing documents
8. Checking that personal devices are not being used in risky ways

Cyber safety does not sit separately from your bookkeeping and payroll processes. Payroll records, supplier information, customer details, bank data and employee information all need to be handled carefully.

When the right systems and access controls are in place, your team can work more flexibly without creating unnecessary risk.

Make communication and responsibilities clear

Good communication still matters, but communication alone will not fix poor systems.

If your team is working across different locations, expectations need to be written down. This helps people understand what needs to happen, when it needs to happen, and who is responsible.

For example, your business may need clear expectations around:

1. When timesheets are due
2. Who approves leave
3. Who approves supplier invoices
4. How urgent payroll changes are submitted
5. Where financial documents are saved
6. How often bookkeeping tasks are completed
7. Who checks reports before key payment dates
8. What happens when the usual person is unavailable

It is also worth setting expectations around communication. Email, phone, video meetings and messaging platforms all have a place, but they need to be used in a way that supports the work rather than adding noise.

Regular check-ins can also help staff stay connected, especially if they are working from home often. These check-ins do not need to be long, but they should give people a chance to ask questions, raise issues and stay aligned with what the business needs.

Protect cash flow visibility

One area often missed in flexible work discussions is cash flow visibility.

When your systems are spread across too many places, it can be harder to know what is happening financially. You may not have a clear view of what has been invoiced, what is overdue, what needs to be paid, and what cash is likely to be available in the coming weeks.

This can create pressure around:

1. Paying staff
2. Paying suppliers
3. Meeting ATO obligations
4. Planning for GST, PAYG and superannuation
5. Managing seasonal income changes
6. Making decisions about hiring, stock, equipment or business growth

Reliable bookkeeping helps give business owners the information they need to make better decisions. It also helps your accountant work with accurate records when tax, compliance or advisory work is needed.

If your team works flexibly, your financial information should still be current, organised and easy for the right people to access.

Plan for backup support when someone is away

Flexible work also gives business owners a chance to think about continuity. If someone is away, unwell, travelling, or suddenly unavailable, can the essential work still be done?

This is especially important for payroll, supplier payments, BAS preparation, reporting and month end bookkeeping. These tasks are time sensitive. If they are delayed, the impact can be felt quickly by staff, suppliers and the business owner.

A strong process should make it clear:

1. What needs to happen
2. Who is responsible
3. Where information is stored
4. Which systems are used
5. What the deadlines are
6. Who can step in if needed

First Class Accounts Ovens & Murray works through a contract service model, which means bookkeeping and payroll tasks are not dependent on one person being available. The work is covered, the process is documented, and the business has reliable support in place.

Make flexible work easier to manage

Flexible work can be useful for many businesses, but it needs the right systems behind it.

If your team works from different locations, or you want to make your business less dependent on manual processes, it may be time to review your setup.

First Class Accounts Ovens & Murray can help you look at how your bookkeeping, payroll, apps, approvals and reporting processes are working now, and where they may need to improve.

We can support you with cloud bookkeeping, payroll processes, business app advisory, app implementation and practical process improvement, so the right work keeps moving wherever your team is working.

Contact First Class Accounts Ovens & Murray to review your systems and make sure your business is set up to work properly in 2026 and beyond.

FAQs about small business systems

What systems does a small business need for flexible work?

A small business usually needs cloud accounting software, secure access controls, clear payroll processes, document storage, approval workflows, reporting systems and communication tools. The exact setup depends on the business, industry, team structure and the type of work being completed.

How can cloud bookkeeping support remote or hybrid work?

Cloud bookkeeping helps the right people access current financial information from different locations. It can support bank reconciliations, invoice processing, receipt capture, payroll records, reporting and BAS preparation, provided the system is set up properly and used consistently.

Why should payroll processes be reviewed before flexible work is introduced?

Payroll processes should be reviewed because staff still need to be paid correctly and on time, regardless of where people are working. Timesheets, leave requests, pay changes, approvals, superannuation and payroll records need clear processes so mistakes and delays are less likely.

What are the benefits of cashflow forecasting for your business?

There are many benefits to forecasting for your business, particularly when it comes to understanding your cash position and planning ahead.

First and foremost, you are more likely to protect and improve your profit position when you can project your income and expenses with a reasonable level of accuracy. This is not just about numbers on a report. It is about knowing what is coming up and being prepared for it.

Accurate cashflow forecasting also helps you identify opportunities and manage your day to day cash position. When you have this information available and up to date, you are in a much better position to make decisions at the right time, rather than reacting after the fact.

At First Class Accounts Ovens & Murray, this is a key part of how we support business owners. Reliable data and structured forecasting give you a clear view of what is happening in your business and what is coming next.

How cashflow forecasting supports better decisions

Here are some examples of questions that an accurate cashflow forecast can help you answer:

Can I start creating a new product or service, and when is the right time to do it? Can I open a new office or expand into a different area without putting pressure on cashflow? Can I afford to bring on another team member or outsource part of the business? Can I take additional drawings from the business without affecting upcoming obligations? Am I at risk of running out of cash, and if so, when?

These are the types of decisions business owners are making every day. Without a clear forecast, these decisions are often based on what is currently in the bank rather than what is coming up over the next few weeks or months.

This is where forecasting links directly to cashflow confidence. Knowing what is ahead allows you to plan payments, meet obligations such as GST, PAYG and super, and avoid last-minute pressure.

How to create a cashflow forecast

How do you create a cashflow forecast?

It no longer needs to be done manually in spreadsheets.

Forecasting apps such as Futrli, which integrates with Xero, allow you to build and maintain forecasts using your actual financial data. This reduces manual work and improves accuracy.

One of the key benefits is the ability to test decisions before you commit to them. You can model different scenarios and see how they impact your cash position before making a change in your business.

What forecasting tools like Futrli actually do

Futrli includes features that support this process:

It creates separate predictions for invoices, cash transactions and journal entries. It tracks how long it takes for invoices to be paid based on your actual customer behaviour. It adjusts forecasts as new data comes in during the month. It identifies patterns across different accounts. It includes payroll predictions aligned with your payroll setup. It presents information in a structured format that is easy to review.

These tools are only effective when the underlying data is accurate. Reliable bookkeeping and correctly processed payroll ensure your forecasts reflect what is actually happening in your business.

This is where First Class Accounts Ovens & Murray adds value. Forecasting is not treated as a standalone task. It is connected to your bookkeeping, payroll, and reporting, so everything is aligned and working together.

How far ahead should you forecast?

Forecasts are most useful when looking ahead over the next 6 to 12 months. This gives you enough visibility to plan for upcoming expenses and business decisions.

In the short term, forecasting helps manage immediate obligations such as payroll, supplier payments and ATO commitments.

Over a longer period, it allows you to assess trends and understand how your business is tracking.

The further you look ahead, the more variables come into play. This is why forecasts should be reviewed and updated regularly, not set once and left unchanged.

What this means for your business

If you are relying on your bank balance to guide decisions, you are only seeing part of the picture.

First Class Accounts Ovens & Murray can set up and manage cashflow forecasting for your business using tools like Futrli, supported by accurate bookkeeping and ongoing review.

If you want forecasting set up properly and working with your numbers, First Class Accounts Ovens & Murray can take care of it for you, so you always know where your business stands.

FAQs about cashflow forecasting

What is cashflow forecasting and why does it matter for Australian businesses?

Cashflow forecasting estimates the money coming into and going out of your business over a set period. For Australian businesses, it is critical for managing obligations like BAS, PAYG withholding, and superannuation, helping you avoid shortfalls and plan ahead with more certainty.

How does cash flow forecasting help manage ATO payments?

A cashflow forecast shows when key payments such as GST, PAYG, and super are due, alongside your expected income. This allows you to plan ahead, set funds aside, and avoid last minute pressure or missed deadlines.

Do I need software like Futrli for cashflow forecasting?

You can create forecasts manually, but tools like Futrli, connected to Xero, use real time data to improve accuracy and save time. They also allow you to test different scenarios, helping you make better decisions based on how your business actually operates.