For small to medium enterprises (SMEs), a business financial plan isn’t just paperwork – it’s the GPS that navigates growth while avoiding cash flow cliffs.

This guide simplifies the process using insights from Australia’s leading financial institutions and regulators.

STEP 1
Lay your financial foundation
Start with three core documents:

1. Cash flow statement
   Track money movements month to month
2. Profit and loss statement
   Compare revenue against operating costs
3. Balance sheet
   Snapshot assets/liabilities (critical for loan applications)

STEP 2
Build your financial toolkit
Incorporate these essential components

STEP 3
Integrate risk management

• Risk assessment matrix
  Rate likelihood/impact of 5 key threats (eg, supply chain delays, cyberattacks)
• Insurance audit
  Cross check required policies against ASIC’s National Consumer Credit Protection Act requirements
• Climate resilience plan
  Address bushfire/flood risks

STEP 4
Optimise tax strategy
Align with ATO’s Small Business Tax Time Toolkit – released in June each year.

1. Deduction checklist
   Claim eligible expenses (65+ categories for SMEs)
2. STP compliance
   Ensure Single Touch Payroll accuracy
3. FBT planning
   Navigate novated leases/company car rules
   
   Note: The Temporary $20k instant asset write-off is extended to June 2025. This could be the last year it is on offer.

STEP 5
Implement monitoring rhythms
Lenders suggested operational best practices are:

• Daily: Review bank balances/payment alerts
• Weekly: Update cash flow forecasts
• Monthly: Compare actuals vs projections
• Quarterly: Reassess risk exposure

TEMPLATE – Your 90 day financial action plan

Weeks 1-4
☐ Finalise cash flow forecast template
☐ Register for STP Phase 2 reporting if not done
☐ Conduct insurance policy review

Weeks 5-8
☐ Complete break even analysis
☐ Negotiate payment terms with key suppliers
☐ Schedule BAS agent consultation if required

Weeks 9-12
☐ Stress test emergency fund against 3 scenarios
☐ Benchmark financial ratios against industry averages
☐ Book quarterly financial health check with adviser

Why planning these activities works
It is reported that businesses using structured financial plans:

• Resolve ATO audits 40% faster
• Secure loans with lower interest rates
• Achieve 23% higher 5 year survival rates

By transforming financial planning from reactive to strategic, you position your business for ultimate success.