With inflation and interest rates recently rising to decade-highs, staying on top of cash flow and costs is more important than ever for Australian small businesses. Here are some simple steps you can take to keep your business on track.
1. Get a clear view of your cash flow
Getting a clear view of money flowing in and out of your business is an essential first step towards managing costs and avoiding a cash flow crunch. And it’s never been easier to do, with Business Cash Flow View1 in the CommBank app.2 Enable Cash Flow View for real-time data on your monthly cash flow and how it’s changed from previous months. You can also switch on Smart Alerts in the CommBank app and NetBank to get real-time notifications when you receive a payment or your account balance is low.
2. Take a fresh look at expenses
Now is a great time to look for opportunities to save on business expenses, especially on regular overheads you pay every month. Start by reviewing your profit and loss statement, identify your biggest expenses, then work your way down, asking yourself where you can save. For example: if your staff are partly working from home, can you start hot-desking and move to smaller premises? Can you lock in better deals on energy, insurance, internet, mobile and phone plans by switching providers? And did you know that eligible CommBank business customers can enjoy a 12-month, 30% discount on specified NBN™, mobile and phone plans from More telco³.
3. Review your pricing and margins
Increasing your prices is the quickest way to improve your margins, with every extra dollar going straight to your bottom line. You won’t be alone – CommBank research shows 30% of businesses have already adjusted their prices this year. That means your customers may be more willing to accept a price increase in the current environment, especially if they’re among those Australians still spending strongly. To find out more about your customer demographics and spending trends, try out Daily IQ⁴ in CommBiz and NetBank – our free business insights tool for eligible CommBank business customers.
4. Update your business plan and forecasts
When the business environment is changing, it makes sense to review your business plan and financial forecasts. And if you’re a CommBank business customer, you can use Daily IQ to get more clarity on the big questions. For example: have any of your customer segments reduced or changed their spending? Are some products or services selling better than others? You can also find out if your business is eligible for any financial assistance through government grants or rebates, by checking the Benefits finder⁶ through the CommBank app or NetBank.
5. Get a business health check
Finally, it’s always good to talk to an expert. To help make sure your business is as financially resilient as possible, contact your local Business Banking Specialist for a free and confidential business financial health check.
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Things you should know
1 Business cash flow is a tool for general information only and should not be solely relied on to make business, accounting, financial, tax decisions or to reconcile your accounts.
2 The CommBank app is free to download, however your mobile network provider charges you for accessing data on your phone. Terms and conditions are available on the app. NetBank access with NetCode SMS is required. Find out about the minimum operating system requirements on the CommBank app page.
3 Offer of 30% off a More business nbn™ plan, SIM-only mobile plan and/or business phone plan for 12 months is for customers who sign up to either a 24 month contract or no contract option by 31 December 2023 and use a CommBank Debit or Credit card as their bill payment method. Offer applies individually to each eligible service activated by this date. Offer does not apply to other More services, including Business Ethernet, Enterprise Ethernet NBN or Business Fibre 1000. Offer cannot be used in conjunction with any other offers or discounts. 12 months is a promotional period commencing on the day your eligible service is activated. After this, the cost of your plan will revert to the Recommended Retail Price (RRP) current at that time. The RRP of More nbn™ plans are subject to change in accordance with More’s terms of service. If you take up this offer on a no lock-in contract, you are free to cancel at any time without charges, but cancelling your service within the 12-month promotional period will forfeit any remaining months discounted at 30% off. Offer applies to monthly plan fees only and does not apply to any hardware charges not included in the plan, hardware installation charges, nbn™ New Development Fee or New Copper Pair charges or any fees for services or usage outside of plan inclusions.
4 Daily IQ has been prepared as a research tool for general informational purposes only and should not be relied on to make business decisions or for account reconciliation. The information may be incomplete or not up to date and may contain errors and omissions. Any projections and forecasts are based on a number of assumptions and estimates, including future events and contingencies, which may be inaccurate. Daily IQ is available to business customers with a CommBank Business Transaction Account.
The target market for these products can be found within the product’s Target Market Determination.
6 You can access Benefits finder through the CommBank app or NetBank. To use Benefits finder, you’ll need to have an account with us and be registered for NetBank.
This article is intended to provide general information of an education nature. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider its’ appropriateness to your circumstances. Interest rate information and predictions are subject
to change depending on economic market fluctuations and conditions. Commonwealth Bank of Australia ABN 48123 123 124.
