RBizz Corporate Accountants - Resources #Cash Flow

CFO's Guide to Tax-Effective Cash Flow Management Across the Financial Year

Thu, 23 Jul 2026 12:31:28 +1000

CFO's Guide to Tax-Effective Cash Flow Management Across the Financial Year

Tax obligations don't arrive evenly across the financial year — they cluster around specific quarterly and annual dates, and for many businesses, that clustering creates predictable cash flow pressure at the same points, year after year. For a CFO, managing this isn't about reacting to each deadline as it arrives. It's about building a cash flow model that already accounts for it.

Why Tax Obligations Create Uneven Cash Flow Pressure

Several obligations land on a recurring quarterly or annual cycle:

BAS and GST payments, due quarterly or monthly depending on your reporting cycle.
PAYG instalments, based on either an ATO-calculated amount or a rate applied to actual income, which can create a mismatch if the business's revenue pattern is seasonal.
Superannuation Guarantee contributions, due quarterly, and increasingly time-sensitive given deduction timing depends on payment being made within the correct financial year.
Payroll tax, where applicable, often on a monthly reporting cycle with an annual reconciliation.
Income tax on lodgment, which can create a large single payment obligation depending on the business's lodgment program and prior-year instalment accuracy.

Individually, each of these is manageable. Stacked together in the same month — which happens more often than businesses expect — they can create a cash flow squeeze that has nothing to do with the underlying profitability of the business.

Building a Tax-Aware Cash Flow Model

1. Map every recurring obligation onto a single calendar

Rather than tracking BAS, PAYG, super, and payroll tax separately, consolidate them into one forward-looking calendar showing exactly when each payment falls due across the full financial year. This makes clustering visible months in advance, rather than being discovered a week before a payment is due.

2. Separate tax funds from operating cash

A dedicated tax reserve account — funded progressively as revenue comes in, rather than drawn down only when a payment is due — removes the temptation to treat GST collected or PAYG withheld as available operating cash, when it's effectively already earmarked for the ATO.

3. Reassess PAYG installments against actual performance

If revenue is tracking materially above or below the instalment rate's assumption, a variation request can better align the instalment amount with actual current-year performance, avoiding either a large refund tied up until lodgment or an underpayment shortfall building up.

4. Build super payments into payroll cash flow, not as an afterthought

Since super is calculated as a percentage of wages and paid quarterly, it should be modelled as a standing payroll-linked obligation, not a separate item reviewed only when the due date approaches.

5. Factor in lodgment-based tax payments separately from instalments

Where the final tax liability differs materially from instalments paid throughout the year, that gap needs to be anticipated well before the lodgment deadline — not identified as a surprise once the return is finalised.

Where CFOs Commonly Get Caught Out

Treating GST collected as available cash, rather than money that already belongs to the ATO and simply hasn't been remitted yet.

Underestimating a growth year's tax impact, where PAYG instalments based on a prior, smaller year understate the actual liability building up in a stronger current year.

Missing the compounding effect of multiple obligations landing in the same month, particularly at quarter-end when BAS, super, and instalments can all fall close together.

Not building a buffer for lodgment-based payments, treating the return's finalisation as the first point the actual liability becomes visible, rather than tracking it progressively throughout the year.

The Commercial Value of Getting This Right

A business that manages its tax cash flow proactively doesn't just avoid late payment penalties — it avoids the more disruptive cost of scrambling for short-term funding or delaying supplier payments to cover an obligation that could have been anticipated months in advance. For a CFO, this is less about tax compliance and more about treasury management with a tax-shaped calendar layered on top.

Building Your Forward Tax Calendar

If your business doesn't already have a consolidated view of every tax obligation across the financial year, building one is one of the highest-value, lowest-effort improvements available to a CFO — it turns a recurring source of cash flow stress into a predictable, planned-for line item.

RBizz works with CFOs to build tax-aware cash flow models that remove the quarterly guesswork — schedule a free consultation to review your forward calendar.

What to Do If You Can't Pay Your Tax Bill on Time

Wed, 15 Jul 2026 19:58:17 +1000

What to Do If You Can't Pay Your Tax Bill on Time

A tax bill you can't pay in full is one of the most stressful moments in running a business — and one of the most common. Cash flow timing, a slower quarter, or an unexpectedly large bill can all leave a business short when a payment is due.

The good news: this situation is far more manageable than most business owners assume, provided it's addressed early. The businesses that get into real trouble aren't usually the ones who couldn't pay — they're the ones who went quiet and hoped it would sort itself out.

What Actually Happens If You Don't Pay

If a tax bill goes unpaid past the due date, two things typically start accruing:

General interest charge (GIC), which compounds daily on the outstanding amount.
Potential compliance action from the ATO if the debt remains unaddressed for an extended period, which can escalate to garnishee notices, director penalty notices, or legal recovery action in serious cases.

Importantly, these consequences scale with how long the situation is ignored — not simply with the fact that a payment was missed. A short delay handled proactively looks very different to a debt left unmanaged for months.

2. Depreciation on Assets

1. Contact the ATO (or have your accountant do it) before the due date

The ATO is generally far more flexible when a business reaches out ahead of time rather than after falling behind. Reaching out early signals that the non-payment is a timing issue, not an avoidance issue.

2. Set up a payment plan

The ATO offers structured payment plans that allow a debt to be paid off in instalments rather than as a lump sum. Eligibility and terms depend on the size of the debt and your compliance history, but this is a well-established, commonly used option — not a red flag on your record.

3. Review your cash flow, not just the tax bill

A missed tax payment is often a symptom of a broader cash flow timing issue. Addressing the root cause — invoicing cycles, payment terms, or seasonal revenue gaps — reduces the chance of the same situation recurring next quarter.

4. Check if remission of interest or penalties is possible

In some circumstances, particularly where there's a genuine and demonstrable reason for the delay, the ATO can consider remitting some interest or penalties. This isn't guaranteed, but it's worth raising as part of a broader conversation with your accountant.

5. Don't ignore ATO correspondence

Letters, SMS reminders, or portal notices about an outstanding debt are far easier to deal with in the first 30 days than after several rounds of escalation. Responding — even just to say a plan is being arranged — keeps the situation manageable.

Why Early Action Changes the Outcome

The difference between a manageable tax debt and a serious compliance problem is almost always timing. Business owners who engage early:

Have more payment plan flexibility
Face lower cumulative interest charges
Avoid escalation to firmer recovery action
Keep the situation as a conversation, not a dispute

You Don't Have to Sort This Out Alone

If you're behind on a tax bill — or you can already see one coming that you won't be able to cover — the earlier you get advice, the more options you have. This is one of the most common situations we help clients manage, and it's rarely as dire as it feels in the moment.

RBizz can help you set up a payment plan, manage ATO communication, and get your cash flow back on track — schedule a free consultation.

How We Can Support Your Business Profitability

Wed, 08 Jul 2026 12:23:24 +1000

How We Can Support Your Business Profitability

Every business owner wants to build a profitable business. While increasing sales is important, true profitability comes from understanding where your money is going, managing costs effectively and making informed financial decisions.

Many businesses focus heavily on generating more revenue, yet overlook the financial strategies that protect and improve their profit margins. That's where working with a proactive accountant can make a real difference.

Modern accountants do far more than prepare tax returns and financial statements. They provide strategic advice, identify opportunities for improvement and help business owners build stronger, more profitable businesses.

Profitability Starts with Understanding Your Numbers

Revenue is only one part of the story.

A business can generate impressive sales while still struggling with cash flow or producing very little profit. Rising supplier costs, unnecessary overheads, poor pricing strategies or inefficient operations can quickly reduce your margins.

Understanding the financial health of your business means looking beyond revenue and focusing on key performance indicators such as:

Gross profit margin
Net profit
Operating expenses
Cash flow
Working capital
Return on investment (ROI)

With accurate financial reporting, you can clearly see what's working, what's costing too much and where opportunities exist to improve profitability.

How Your Accountant Helps Improve Profitability

A trusted accountant becomes a strategic partner, helping you make smarter financial decisions throughout the year.

Here are some of the most valuable ways they can support your business.

Strategic Tax Planning

Better Cash Flow Management

Controlling Costs Without Limiting Growth

Forecasting and Financial Modelling

Better Reporting Leads to Better Decisions

Supporting Sustainable Growth

The Bottom Line

The most successful businesses don't leave profitability to chance.

They regularly review their financial performance, monitor their key metrics and work with trusted advisers who understand both the numbers and the business behind them.

With the right accounting support, you gain more than compliance—you gain financial clarity, better decision-making and a trusted partner focused on helping your business succeed.

Talk to Us About Improving Your Business Profitability

Improving profitability starts with understanding your business inside and out. Our team can help you reduce unnecessary costs, strengthen your cash flow, improve financial reporting and develop strategies that support sustainable, long-term growth. Together, we'll turn your financial data into practical insights that help your business become stronger, more resilient and more profitable.

Get in Control of Cashflow

Fri, 03 Jul 2026 00:50:51 +1000

Get in Control of Cashflow

It’s a well-worn phrase, but cashflow really is the lifeblood of your business.

When your cash inflows are greater than your cash outflows, that puts you in a positive cashflow position – giving you the liquid cash needed to trade, improve and grow as a business.

But if costs start to outstrip your income, that can leave too little cash in the pot. This results in mounting debt, problems paying suppliers and (in the worst cases) the failure of your business.

So it’s vital to get proactive with cashflow management!

Fast ways to improve your cashflow

Cashflow is an ongoing process, where you need to constantly track, monitor and act on the numbers you see in your regular cashflow statements.

A negative cashflow position can be due to a number of factors, whether it’s insufficient sales, slow payment of invoices or poor cost management. The solution to these issues is to take a proactive and holistic approach to improving the company’s cash situation.

Some key ways to boost your cash position include:

Improve your sales and marketing – creating more sales and boosting income.
Make it easy to get paid – using the latest in payment tech to speed up payment times.
Track and manage debts – chasing any late payments to reduce your aged debt.
Manage spending effectively – and start to track, review and reduce your costs.

Talk to us about improving your cashflow

If cashflow is becoming a headache for your business, we can quickly help you get back in control of your cash position – and attain that all-important positive cashflow position.

Get in touch to improve your cashflow.

Loss carry back: what this means for your startup or small business

Tue, 26 May 2026 22:58:47 +1000

Loss carry back: what this means for your startup or small business

For your startup or small business to succeed, you need to take calculated risks – risks that may entail your business making a financial loss during periods of innovation or expansion.

This spectre of financial loss can be a barrier for risk-averse business owners. But the new loss carry back arrangements, introduced in the Federal Budget 2026, go some way towards reducing the negative impact of financial losses – and encouraging your business to innovate.

Let’s look at what this means in simple terms.

What is a loss carry back arrangement?

Loss carry back arrangements act as a vital fiscal safety net. They allow your business to apply current trading losses against taxed profits you’ve earned in previous years, resulting in a direct cash refund from the government.

By using this mechanism, you effectively get an immediate injection of liquidity during difficult periods, such as unproven research and development or major scaling operations.

What’s the benefit for your business?

By reducing the long-term financial downside of an unsuccessful venture, the government’s new loss carry back policy encourages your business to pursue more ambitious innovation and capital expenditure – strategies you may have avoided previously due to the risk of losses.

As quoted on the Budget website, the aim of this new arrangement is to boost ‘economic resilience, support productivity and promote employment’ in Australian businesses.

How will the loss carry back arrangements work?

From 2026–27, eligible companies that make a loss in the current income year will be able to use that loss to get a refund against tax paid in the prior two income years. This carry back will apply to revenue losses only, and be limited by a company’s franking account balance.

It’s worth noting that loss carry back eligibility is limited to companies with aggregated annual global turnover of less than $1 billion, excluding some high-turnover organisations.

The Government is also introducing loss refundability to support new start‑up businesses. From 2028–29, small start‑up companies in their first two years of operation will be able to get a refund for tax losses, up to the value of fringe benefits tax and withholding tax paid on employee wages. This relief will be available to start-ups with aggregated annual turnover of less than $10 million.

Improved cashflow with the instant asset write-off

The Government is also improving cashflow for small businesses by permanently extending the current $20,000 instant asset write‑off from 1 July 2026.

If you’re a small business with turnover up to $10 million, you’ll be able to immediately deduct eligible assets costing less than $20,000.

Let’s talk about innovation, investment and loss relief

If you’re ready to explore ways to make use of loss carry back arrangements, or the instant asset write-off, please come and talk to our team.

We can help you build a solid innovation strategy, backed by solid tax planning and reliefs.

Understanding Your Balance Sheet

Thu, 07 May 2026 23:10:09 +1000

Understanding Your Balance Sheet

To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of the financial position and business performance.

So what’s involved: The balance sheet has three sections: assets, liabilities and equity.

What are Assets?

Assets are things and resources that a company owns. They have current and/or future value and can be measured in currency.

Assets may be subdivided on the balance sheet into bank accounts, current assets, (receivable within one year), fixed assets, inventory, non-current (or long term) assets, intangible assets and prepayments.

These include banks and other financial accounts held, accounts receivable (trade debtors), supplier deposits or bonds, stock on hand, property, equipment, vehicles, investments and intellectual property. All of these can be translated into monetary value.

What are Liabilities?

Liabilities are amounts owed to suppliers and other creditors for goods or services already received. Liabilities may also include amounts received in advance for future services yet to be provided by the business.

Liabilities are generally subdivided into current, (payable within one year), and non-current liabilities.

These include accounts payable (trade creditors), payroll obligations (salaries, taxes, superannuation), interest, customer deposits received, warranties and loans.

What is Equity?

Equity includes owner funds contributed, drawings, retained earnings and stocks. The value of the equity equals assets minus liabilities.

Transactions that affect profit and loss accounts also affect balance sheet accounts. For example, providing a service increases the accounts receivable balance, which therefore increases the equity.

The Balance Sheet Equation

The balance sheet must always balance! Asset value = liabilities + equity.

For example, if you buy a new vehicle for the business at say 50,000, having paid a 10,000 deposit and taking out a 40,000 loan, the value of fixed assets increases by 50k, but the bank asset value decreases by the 10k deposit paid. The value of liabilities increases by 40k loan, thus leaving the balance sheet balanced on both sides of the equation.

The balance sheet equation shows you how much money you would have left over if you paid all your bills and debts and sold all your assets at a given date. This amount is the Owner’s Equity.

Note that the balance sheet equity total is not necessarily how much the business is worth at market value. Assets are listed on the balance sheet at their transaction value, which may be very different from the market value. Some assets may be worth more, and others may depreciate in value. Business value is calculated not just on the balance sheet figures but many other factors.

Need more information?

Talk to us. Get the complete picture of your business performance and financial position, regardless of what stage of business you are at.

Beyond the Ledger: 3 Accounting Trends Reshaping 2026

Thu, 07 May 2026 23:09:04 +1000

Beyond the Ledger: 3 Accounting Trends Reshaping 2026

As we move through May 2026, the accounting landscape in Australia is shifting from "compliance-only" to "strategic-first." While the numbers still need to balance, the tools and regulations surrounding them have evolved significantly.

1. The Rise of "Payday Super" & Real-Time Reporting

The biggest structural change for 2026 is the mandatory shift to Payday Super. Starting 1 July 2026, the ATO requires superannuation to be paid on the same day as wages. For businesses, this means the end of the quarterly "lump sum" rush.

Actionable Tip: If you are still using the Small Business Superannuation Clearing House (SBSCH), be aware it is scheduled to close by 30 June 2026. You’ll need to transition to a direct payroll-integrated solution before the July 1st deadline.

2. From "Bookkeeper" to "Strategic Advisor"

With AI and automation now handling up to 80% of manual data entry and bank reconciliations, the role of your accountant has changed. In 2026, top firms are using real-time KPI dashboards to provide:

Predictive Cash Flow: Catching a shortfall before it happens.
Gross Margin Bridges: Pinpointing exactly why your profit dropped even when sales stayed high.
Scenario Modeling: Testing the impact of a new hire or price increase before you commit.

3. ESG Reporting: Not Just for Big Business

Environmental, Social, and Governance (ESG) reporting is no longer just for the ASX top 200. In 2026, small businesses are finding that "green credentials" are required for:

Bank Lending: Banks are increasingly factoring climate risk and governance into interest rate offers.
Government Tenders: Proving your sustainability and diversity metrics is now a standard requirement for many local and state contracts.

Beyond the Ledger: 3 Accounting Trends Reshaping 2026

Tue, 05 May 2026 13:01:02 +1000

Beyond the Ledger: 3 Accounting Trends Reshaping 2026

1. The Rise of "Payday Super" & Real-Time Reporting

Actionable Tip: If you are still using the Small Business Superannuation Clearing House (SBSCH), be aware it is scheduled to close by 30 June 2026. You’ll need to transition to a direct payroll-integrated solution before the July 1st deadline.

2. From "Bookkeeper" to "Strategic Advisor"

Predictive Cash Flow: Catching a shortfall before it happens.
Gross Margin Bridges: Pinpointing exactly why your profit dropped even when sales stayed high.
Scenario Modeling: Testing the impact of a new hire or price increase before you commit.

3. ESG Reporting: Not Just for Big Business

Environmental, Social, and Governance (ESG) reporting is no longer just for the ASX top 200. In 2026, small businesses are finding that "green credentials" are required for:

Bank Lending: Banks are increasingly factoring climate risk and governance into interest rate offers.
Government Tenders: Proving your sustainability and diversity metrics is now a standard requirement for many local and state contracts.

The Importance of "Working Capital" for Business Growth

Thu, 30 Apr 2026 12:20:15 +1000

The Importance of "Working Capital" for Business Growth

Many business owners focus solely on profit, but profit doesn't pay the bills—cash does. In 2026’s fast-paced market, understanding your Working Capital is the difference between a business that can seize new opportunities and one that struggles to keep the lights on.

What is Working Capital?

Working capital is the money your business has available for its day-to-day operations. It is the liquid funds used to pay for raw materials, inventory, salaries, and overheads while you wait for your customers to pay you.

The Working Capital Cycle

The "cycle" represents the time it takes to turn your net current assets and liabilities into cash. For example, when you buy stock, that cash is "trapped" until the product is sold and the customer pays the invoice. If your cycle is too long, you might find yourself "asset rich but cash poor."

How to Improve Your Working Capital Position

Optimise Inventory: Holding too much stock ties up cash. Use "Just-in-Time" inventory management to keep only what you need.

Shorten Payment Terms: Instead of 30-day terms, consider 7-day or 14-day terms, or offer a small discount for early payment.

Negotiate with Suppliers: Try to extend your "Accounts Payable" terms. If you can pay your suppliers in 45 days but collect from customers in 15, you have a 30-day "cash cushion."

Audit Your Expenses: Regularly review recurring subscriptions and overheads to ensure no "leaks" are draining your daily operational funds.

Why Working Capital Matters for Scaling

Growth requires an upfront investment in people, marketing, or equipment. If your working capital is tied up in unpaid invoices or dusty inventory, you won't have the "fuel" needed to accelerate. By mastering this metric, you ensure your business remains agile and resilient.

What is your Debt-Service Coverage Ratio (DSCR)?

Mon, 27 Apr 2026 13:24:49 +1000

What is your Debt-Service Coverage Ratio (DSCR)?

Access to finance plays a fundamental role in bringing your business plans to life. But the financial jargon and measurements used by lenders can often feel like a barrier.

One important metric to get your head around is the Debt-Service Coverage Ratio (DSCR) which lenders use to assess your borrowing power.

What is a Debt-Service Coverage Ratio (DSCR)?

At its core, the DSCR measures the available cashflow your business has to pay its current debt obligations. While your balance sheet shows what you own and owe, the DSCR shows whether you are actually generating enough liquidity to cover your interest and principal payments.

From a lender’s perspective, it’s the primary indicator of your company’s financial health and your ability to weather economic downturns without defaulting on your loan.How do lenders use the DSCR metric?

Lenders want to know that you’re capable of repaying the money lent to you. They’ll use the DSCR ratio to gauge the level of risk involved in offering capital to your business.

The DSCR provides a measurement that lenders can use to assess your risk as a borrower:

A DSCR of 1.0 means the business has exactly enough net operating income to cover its debt, leaving no room for error.
A DSCR below 1.0 indicates negative cashflow, suggesting that the business may need to dip into savings or take on more debt to stay afloat – a major red flag for lenders.
A DSCR of 1.25 or higher is typically the gold standard for commercial lenders. If you can attain a high DSCR score, you should have fewer issues accessing funding.

By calculating the DSCR ratio, lenders can decide not just if they should lend to you, but also the terms of the loan. A higher ratio means the risk of default is lower, often leading to lower interest rates and more favourable repayment periods.

How to Calculate Your DSCR

If you’re talking to banks and lenders, it makes sense to calculate your DSCR before any meetings or loan applications, so you’re aware of your potential rating:

The formula is:

DSCR = Net Operating Income / Total Debt Service

Net Operating Income (NOI) is your revenue minus operating expenses (excluding taxes and interest payments).
Total Debt Service is the sum of all your interest, principal payments and lease payments that are due within the financial year.

Calculating and monitoring your DSCR as a business

By monitoring your DSCR regularly, you can make informed decisions about when to expand, when to cut costs and when your business is truly ready to take on new investment.

If you’d like to know more about calculating and improving your DSCR score, come and talk to our team. We’ll be glad to run you through the equations and the proactive steps you can take.