With the cost of doing business on the rise, making sure your SME clients are on top of their operational cash flow should be a priority. According to the Australian Bureau of Statistics' most recent business sentiment survey, nearly half (46%) of all businesses experienced increases in their operating expenses, with 21% of owners reporting they either reduced their income or didn’t draw one at all as a result.

Without careful cash flow management, SMEs risk being unable to pay suppliers, meet payroll or invest in growth opportunities. But there are some simple ways to help your clients stay on track before these issues escalate.

Cash flow basics

By implementing practical solutions such as better forecasting, tightening payment terms and reviewing expenses regularly, businesses can safeguard their financial health in challenging times, advises Dale Dixon, MYOB general manager, Practice & Partner Advocacy. 

Dixon recommends using the MYOB Cash Flow Workbook as a guide for when and how to talk to your SME clients about cash flow, so you can help them to establish healthy habits and strong business management practices.

“We know this could be a difficult conversation for your clients because they just don’t have time to look at what’s happening,” he says. “The Cash Flow Workbook can help guide you on when to step in and educate your clients about different ways to monitor cash flow, so their focus is reactive and they aren’t flying by the seat of their pants.”

Automate and calculate

Being able to see financial activity right away is important for getting a clear picture of how a business is doing, which is why tapping into tech is essential.

“Cash flow conversations can’t start without essential financial data at your fingertips,” says Dixon.

“By setting up bank feeds and using automations with rules and allocation templates, you can keep the data in great shape, make the tough tasks easier, and create a solid foundation for analysing your finances and having productive cash flow discussions.”

Manage invoice payments

Late payments, non-payments and ineffective follow-up can lead to major cash flow issues for SMEs.

“Automating invoicing and giving customers better options to pay faster takes away the burden of chasing overdue money. It also gives your clients much more clarity around when money is moving into the business,” says Dixon.

By prioritising cash flow and leveraging the right tools and resources, businesses can not only survive but thrive, turning financial challenges into opportunities for growth. With your guidance, SME clients can develop robust cash flow practices that support their long-term success.

“Encourage your clients to view cash flow management not just as a task, but as an ongoing strategy that supports their business goals,” says Dixon.

Find out more

Keen to see the MYOB Cash Flow Workbook?  Click here.