RBizz Corporate Accountants - Resources #Cash Flow

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 23:09:03 +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.

3 Ways to Make Your Business Attractive to Lenders

Fri, 10 Apr 2026 13:50:20 +1000

3 Ways to Make Your Business Attractive to Lenders

Micro, small and medium-sized enterprises (MSMEs) make up over 90% of all firms and, on average, account for 70% of total employment and 50% of GDP worldwide.

But MSMES are finding it increasingly difficult to access funding. According to recent figures from the International Finance Corporation, (part of World Bank Group) the MSME finance gap in emerging markets and developing economies (EMDEs) now stands at $5.7 trillion.

The key routes to funding

For your micro, small or medium-sized business to thrive, it’s important to have easy access to funding. But what are the usual routes to take when looking for additional funding?

For many business owners, the starting point has traditionally been their bank. Overdrafts, business loans and access to credit cards open up a route to extra capital. But with the major banks currently reluctant to lend to MSMEs, the lending market has diversified.

Private finance specialists and fintech platforms offer ways to borrow. But despite the proliferation of alternative lenders, it’s still vital to be an attractive proposition for lenders.

How to make your business more attractive to lenders

Lenders don’t want to lend to a risky prospect. As a business, it’s critical that you have a positive credit profile, good sales revenues and the available cashflow to repay the loan.

To present your business as a more attractive prospect, try these three key approaches to good recordkeeping, cashflow administration and debt management.

Keep accurate, real-time financials: Using cloud accounting software, like Xero, QuickBooks or MYOB, helps you provide potential lenders with the financial data they need. Having up-to-date balance sheets and cashflow statements gives the lender a clear overview of your financial performance and reduces the perceived risk of lending.

Demonstrate consistent cashflow coverage: Focus on achieving a strong debt service coverage ratio (DSCR). If you can show consistent, recurring revenue that comfortably covers the company’s existing and proposed debt obligations, this reassures lenders of your ability to repay.

Strengthen your business credit scores: Regularly monitor and improve your business credit score by paying suppliers early and correcting reporting errors. A high score signals you’re a low risk to lenders and eases the path to lender approvals.

Opening up the best routes to small business lending

If you’re eager to scale but are facing resistance from traditional lenders, come and talk to us. Our team can help you build a workable funding strategy and recommended approach to best lenders.

Cash flow and cost control

Fri, 10 Apr 2026 12:31:22 +1000

Cash flow and cost control

On 1 July 2026, the Small Business Superannuation Clearing House (SBSCH) will close permanently as part of the Payday Super reforms. With only a few months left, employers still using the SBSCH need to find an alternative option, and soon.

Don’t wait until the last minute

If you currently pay your superannuation quarterly, the Australian Taxation Office (ATO) recommends that the super payment for the January-March 2026 quarter (due 28 April 2026) be the last payment you make through the SBSCH. That way, you give yourself time to find and adjust to a new provider before you need to pay super for the April-June 2026 quarter.

Remember, the April –June quarter payment (due 28 July 2026) cannot be made using the SBSCH after 30 June 2026.

Choosing a new provider

There are a lot of different options out there to replace the SBSCH:Check your existing payroll software, as it may well already have super functions that you can use to pay your employees’ super guarantee contributions.

Check other payroll software or providers that meet all SuperStream requirements.

Find a commercial clearing house or super fund that provides payment options—that might include your default super fund.

Once you’ve picked your new provider, make sure to trial it out well before 1 July 2026. That way, you can get comfortable with the new platform while also having the chance to troubleshoot any potential errors before Payday Super comes into effect.

As a reminder, Payday Super requires that employers pay their employees’ super at the same time as their salary and wages, with funds to be received into employees’ nominated funds within seven business days of payday.

Closing up your SBSCH account

After 11:59 pm AEST on 30 June 2026, you won’t be able to log in to the SBSCH to submit instructions or view records, so make sure that you’ve finalised any payments and downloaded any reports from the SBSCH before it closes for good.

Make sure you’re Payday Super ready

Need help picking an alternative to the Small Business Superannuation Clearing House, or looking for further advice about Payday Super? Get in touch with a member of our team – we’d be happy to walk you through your options, and put a plan in place to get your business ready ahead of 1 July.

Keeping your cashflow strong in tough times

Fri, 10 Apr 2026 02:21:09 +1000

Keeping your cashflow strong in tough times

Small businesses are particularly vulnerable in tough economic times.

When sales are slow, there are still overheads and salaries that need to be sorted. Pre-planning and being proactive can help you weather tighter economic periods and allow you to continue to thrive.

Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for.

If there’s even a possibility that there could be a shortfall, it’s essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business outgoings, you must make a plan to ensure that the business, or your staff, won’t suffer.

Minimise the stress of cash-flow

Invoice early - Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.

Chase payment - Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter - talk to clients and chase invoices.

Talk to suppliers - A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.

Review Inventory - Can you find a cheaper supplier locally to avoid the shipping costs or discuss alternative products that allow you to reduce expenses?

Review your costs - It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.

Talk to the bank or tax department - If cashflow is tight, make sure you have conversations early so you have everything in place to see you through.

We can help you implement strategies to protect your business for the long term and help you alleviate cashflow worries.

5 ways logistics companies can cope with rising fuel prices

Fri, 10 Apr 2026 02:20:12 +1000

5 ways logistics companies can cope with rising fuel prices

If you’re running a logistics company, small delivery business, or a company fleet of trucks, the rising costs of fuel will no doubt be a major concern.

Prices of oil have been rising since the conflict in the Middle East escalated in February 2026, with the current price of crude oil reaching record levels. With fuel prices still rising, you’ll see your profit margins slide as the cost of running your vehicles becomes ever-more expensive.

Fuel prices are not something you can directly influence. But there are ways for you to mitigate the impact of these skyrocketing petrol and diesel prices.

Five tactics and strategies for mitigating the impact of rising fuel prices

1. Consider introducing fuel surcharge clauses

You can protect your own cashflow by adding index-linked fuel surcharge clauses to your contracts with customers. This allows you to pass fluctuating costs on to your customers when prices exceed a specific, pre-defined baseline figure.

2. Optimise your route-planning with AI

Think about moving from manual planning to using AI route-planning software that calculates the most fuel-efficient paths in real-time. This reduces wasted miles and avoids idling in traffic, helping you to cut your fuel consumption across frequently used routes.

3. Consolidate loads to reduce the fuel costs

You can maximise the efficiency of deliveries by grouping smaller shipments into less-than-truckload (LTL) deliveries. You can also use digital freight exchanges to find backhaul loads for return journeys, so your trucks never burn fuel while travelling empty.

4. Enforce strict ‘eco-driving’ policies for drivers

Use telematics and in-vehicle tech to monitor and coach your drivers against heavy acceleration, speeding and excessive idling. Reducing speeds on highways and motorways can improve a vehicle's fuel economy significantly, reducing the cost of each journey.

5. Transition to electric vehicles (EVs)

This is more of a long-term strategy, but switching your fleet over to EVs may be a sound move.

Replacing your internal combustion engine (ICE) vehicles with electric alternatives removes your reliance on volatile oil markets. EVs offer significantly lower ‘fuel’ costs per kilometre/mile and the long-term maintenance requirements can also be lower than for ICE vehicles.

Helping track and reduce your fuel costs

As a logistics business, effective management of your fuel costs is key to keeping your profit margins in check. If you’re concerned about the impact of rising fuel costs, book some time with our team. We’ll help you put tactics in place to keep fuel usage down and profits up.