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1. Plan your cash flow

Plan your business so it brings in more money than it spends.

Develop your business plan

Your business plan sets the approach for managing your cash flow. It helps you:

  • set clear goals for your business and money
  • work out how you’ll reach your goals spot problems
  • early and fix them get funding from banks and other investors.

Use our business plan tool or downloadable template. You can also get help from a business adviser if you need it.

Learn more

Checklist

  • Prepare your financial information
  • Create or update your business plan
  • Ensure your business plan will help you manage money coming in and out

Fund your business

Getting the right funding helps you start or grow your business. It can also help you manage your cash flow when other money isn’t coming in.

You can:

  • use your own savings
  • get a bank loan
  • find investors
  • borrow from family or friends
  • apply for a government grant.

Each option has its own costs and risks, so compare what’s available and choose what suits your business.

Learn more

Checklist

  • Work out how much you need
  • Compare funding options
  • Check the repayment costs and risks
  • Prepare your documents, such as your business plan or financial statements
  • Get professional advice if you’re not sure which funding is right for you

2. Set up your finances

Use financial tools and reports to keep an eye on your cash flow and make better decisions about money.

Keep good records

Keeping good financial records helps you understand your business's money habits and spot cash flow issues early. This supports better decision-making and helps you plan with confidence.

Having good records also makes it easier to:

  • get funding
  • meet your tax and legal obligations.

Learn more

Checklist

  • Keep records of all sales and costs, such as receipts, invoices and bank statements
  • Use a record keeping system that works for you (paper or digital)
  • Keep financial records for at least 5 years

Use digital accounting tools

Digital accounting tools are software or online systems that help you run your business.

Most tools:

  • let you see your cash flow in real time
  • can compile reports to give you valuable insights
  • offer extra features like mobile access, so you can manage your finances from anywhere.

If you have employees, make sure your accounting tool supports Single Touch Payroll (STP).

Learn more

Checklist

  • Choose a digital accounting tool that suits your business
  • Set up your tool to track sales and costs
  • Know how to protect your business from cyber threats
  • Keep your digital tools updated so you have the latest features, security enhancements and bug fixes
  • Get help from a professional (if you need it)

Set up a cash flow statement

A cash flow statement shows all the money coming in and going out of your business. This helps you see if you can pay your bills on time and plan for other future costs.

You can use a downloadable template or an online tool to create your cash flow statement.

Remember to update your statement regularly to spot seasonal trends and cycles. This can help you:

  • prepare for busy times
  • plan for quiet periods
  • keep your cash flow steady.

Learn more

Checklist

  • Get the details of your income and costs
  • Create your cash flow statement
  • Review and update your statement regularly

Create your budget

A budget helps you plan for future costs and direct your money to where you need it most.

Use a budget to track your income and spending. It can help you manage your cash flow and make better financial decisions.

Learn more

Checklist

  • Choose a budgeting tool
  • Set up your budget
  • Review and update your budget regularly to stay on track

3. Put money aside for ongoing costs

Plan for regular costs, such as taxes and employee super. Put money aside in a separate bank account to help you pay what you owe on time.

Get your tax right

Plan when and how you'll pay your tax obligations to better manage cash flow and avoid penalties

Set aside money regularly so you have funds ready when tax payments are due. Taxes you might need to pay include goods and services tax (GST) and pay as you go (PAYG) withholding.

Learn more

Checklist

  • Check which taxes apply to your business
  • Find out when you need to pay
  • Update your cash flow statement to plan for them

Plan for employee costs

Paying employee costs is an important part of running your business that affects your cash flow.

Include these costs in your budget and cash flow statement to ensure you always have enough money for:

  • wages or salary
  • superannuation (super) contributions
  • allowances

Keeping good records and planning will help you meet your obligations and avoid unexpected costs.

Learn more

Checklist

  • Work out your regular costs for wages, super and allowances
  • Update your budget and cash flow statement
  • Pay entitlements correctly and on time
  • Stay up to date with any changes to awards, pay and super rates

Keep on top of due dates

Knowing when you have to pay money helps you avoid cash flow stress and possible fines.

For example, you may need to pay:

  • payroll tax
  • business activity statements (BAS)
  • licence renewals
  • supplier invoices
  • rent
  • loan repayments.

Learn more

Checklist

  • Find out which payments your business needs to make
  • Check each due date
  • Set reminders in your calendar or schedule payments in advance
  • Review your due dates regularly to make sure you don’t miss anything

4. Keep your cash flow healthy

You can increase your cash in and reduce your cash out by making some practical changes to how you run your business.

Improve your cash flow

Bringing in money faster and spending less helps your business stay on track.

Small changes in how you run your business can help you avoid cash shortages and keep your business running smoothly.

To keep your cash flow healthy:

  • set the right prices for your products or services
  • collect payments quickly
  • control your costs
  • manage your stock and assets well.

Learn more

Checklist

  • Review your cash flow statement regularly
  • Follow up with customers who haven’t paid
  • Review your costs for savings opportunities
  • Keep track of stock levels and reorder only when needed
  • Look for ways to use your equipment or assets more efficiently

Review your prices

Review your prices regularly to keep your business competitive, check you’re covering your costs and make sure you comply with relevant laws.

Price reviews help you:

  • respond to changes in the market
  • meet your business goals
  • keep your cash flow healthy.

Learn more

Checklist

  • Compare your prices with similar businesses
  • Adjust your pricing if your costs or market changes
  • Make sure your prices meet legal requirements
  • Ask your customers for feedback on your prices

Invoice the right way

Send your customers clear and correct invoices. This helps you get paid on time and keep your cash flow steady. It also helps you keep good records and follow tax rules.

There are laws covering which type of invoice you need to use. If you’re registered for goods and services tax (GST) you must use a tax invoice. Use a regular (non-tax) invoice if you’re not registered for GST.

Learn more

Checklist

  • Know which type of invoice your business needs to use
  • Send an invoice as soon as you make a sale
  • Keep copies of invoices for your records
  • Follow up quickly on unpaid invoices

Choose your payment terms

Payment terms are the rules you set for how and when customers pay for your goods or services. They form part of a sales contract under contract law.

Setting clear payment terms can help you get paid on time, which helps you manage your cash flow.

Learn more

Checklist

  • Decide when you want customers to pay – for example, up front or in 30 days
  • Choose which payment methods you accept
  • Decide how you’ll collect overdue payments and debts
  • Add your payment terms to your invoices and contracts
  • Review your payment terms regularly to make sure they still suit your business

Manage your inventory

Doing regular stocktakes and managing your inventory well can free up cash for other parts of your business.

Keep track of the items you have and what you need to buy. This helps you:

  • know what’s selling well
  • avoid running out of stock
  • reduce costs from over-ordering
  • make better decisions about buying and selling.

Learn more

Checklist

  • Check your inventory levels regularly and record any changes
  • Look at your sales trends to see what’s popular and what’s not
  • Review your latest stocktake to spot items that aren’t selling
  • Decide which items to reorder or stop selling

Negotiate with your suppliers

Talk with your suppliers to negotiate payment terms and pricing that suits your business. This helps you control outgoing payments and manage your cash flow.

For example, you could ask for a 60-day payment term instead of 30 days. This lets you hold onto cash longer. Or you could commit to regular orders to get a bulk discount and reduce your overall costs.

Learn more

Checklist

  • Compare suppliers to find the best fit for your needs
  • Ask about discounts and payment options
  • Review contracts before you sign to understand the financial impact

5. Check if you’re on track

It's important to check how you're performing against your plans. This helps you see if you need to improve your cash flow.

Track your performance

Regularly check how your business is performing so you can spot cash flow issues early and make better decisions about your money.

Compare your estimated and actual income and costs to quickly identify shortfalls. Then you can:

  • reduce costs
  • follow up on overdue invoice payments
  • revise your budget.

Learn more

Checklist

  • Regularly review your main financial documents, such as your profit and loss statement
  • Identify areas you need to work on to save money or increase sales
  • Update your cash flow statement and budget regularly

Stay on top of your yearly tasks

The end of financial year (EOFY) is a good time to reflect on your business’s finances and performance.

Completing your business tax return and other EOFY tasks gives you a clear picture of your cash flow and helps you:

  • spot cash flow risks
  • find ways to improve your cash flow
  • plan for the new financial year.

Learn more

Checklist

  • Review your finances and measure your results against the goals you set at the start of the financial year
  • Review your business plan and marketing plan and assess if your current strategies are working
  • Set new goals and priorities for the next financial year and add them to your plans

Know the signs of financial trouble

If you’re struggling to pay bills, relying on credit or delaying supplier payments, it could mean your cash flow is under pressure.

Learn the warning signs of financial trouble so you can spot problems early and fix them before they grow.

Learn more

Checklist

  • Understand your cash flow patterns
  • Keep an eye on profitability and cost trends
  • Monitor changes in customer behaviour
  • Act early and get advice before issues escalate

Get help with your finances

Managing your business finances can be challenging but there’s professional help available to:

  • get your accounts in order
  • manage your cash flow
  • make the right financial decisions.

Choose an adviser who understands your needs. You can talk to them online, over the phone or in person – some can even visit your business.

Learn more

Checklist

  • Decide what kind of help you need
  • Use our adviser finder to search for help
  • Prepare your questions before you meet