That’s why, whether you’re just finding your rhythm or have been in business for years, one of the smartest financial moves you can make, especially if you’re juggling clients, family, and fifty tabs open in your brain, is to build a financial buffer.

It’s not something you sort out once you’ve “made it”. It’s your business’s safety net, a priority right now, especially if things already feel tight.

Why a buffer matters (even when business is good)

Cashflow is still the number one reason small businesses fail in Australia. Not a lack of customers. Not a lack of talent. Not even bad marketing. Just money not coming in fast enough. It’s that simple – and honestly, pretty heartbreaking.

Around 60 per cent of Australian businesses won’t make it past their third year – and nearly one in five will close their doors in the first. And more often than not, it’s not because the idea was bad. It’s because they ran out of runway.

A financial buffer gives you breathing room. It buys you time, options and peace of mind – so you’re not making panicked decisions (or maxing out a credit card) the moment something goes sideways.

What can go in your buffer – and what can’t

Let’s clear something up: A buffer isn’t your tax savings, your super, or the money you’ve mentally set aside for the laptop you’ve been eyeing since February.

Your buffer is ring-fenced for business survival. It’s there to cover the essentials if your income dries up for a bit – wages, rent, subscriptions, insurance, and other fixed costs that don’t magically disappear just because sales slow down.

It’s not your emergency chocolate fund (though that’s important too). Think of it as the safety gear, not the growth gear.

If you want to take it up a notch, you could even name the account something like “Business buffer” or “Do not touch” (whatever works for you!) so you’re mentally keeping it off-limits except in genuine need.

So, how much should you aim for?

The gold standard is 3–6 months’ worth of essential business expenses. Not your “nice-to-haves” – we’re talking the basics:

• Staff wages (including your own – yes, you count!)
• Rent or workspace costs
• Key subscriptions or tools
• Stock or materials
• Insurance
• Loan repayments

If that number makes you want to slam your laptop shut or hurl your phone across the room, don’t stress. Pause. Breathe. Start smaller. A buffer of $1000, $2000 or even $500 is a solid start. Momentum matters more than perfection.

Five ways to build your buffer without freaking out

Set up a separate savings account – One that’s not attached to your everyday business account. Out of sight, out of mind (and out of temptation when things feel tight). A widely popular model is the Profit First approach, but many small businesses struggle with the number of accounts it recommends. Start simple – one buffer account is enough to build the habit and create breathing room. 

Automate a regular transfer – Just like your super or utilities, treat it as a business essential. Start with what you can manage – even a small amount each week adds up over time. 

Put aside the wins = Landed a new client? Had a bumper month? Before you celebrate with new tech, pop some into your buffer. Future You will be grateful.

Speak to your accountant – Clients often call me saying they want to invest in new equipment. I’ll ask about their cash position, and they’ll say, “I’ve got $10,000 in the bank.” My reply? “That’s your cashflow”. Of course, there are other factors to consider – but if you’re not having these conversations with your accountant regularly, you should be. A good decision starts with knowing what you can actually afford, not just what’s in the bank that day.

Check in every quarter – As your business grows (and your expenses with it), update your financial buffer goal. It should scale with you.

What not to do

• Don’t rely on a credit card as your “just-in-case” plan. That’s not a buffer – that’s borrowing future stress.
• Don’t wait for a crisis to start saving. By then, it’s already too late.
• Don’t beat yourself up if it takes time to build. This isn’t about overnight success – it’s about steady progress.
• Don’t wait for a perfect time – it’s not coming. Start now. 

The goal is stability, not perfection. And trust me, when the unexpected hits (because it always does), you’ll be so glad you gave yourself a cushion to land on.

Because cash might be king, stress might be queen… but with a little buffer in your corner, you’re the one wearing the crown.

The post A financial buffer could save your business – here’s how to build one (even if cash feels tight) appeared first on Inside Small Business.

There’s a very specific kind of dread that comes with opening your accounting software and realising you have no idea what you’re looking at. Or worse – you haven’t opened it in weeks… or months… or since your accountant ghosted you in 2022.

As an bookkeeper, I see you. And I promise: you’re not the only one.

Over the past 25 years, I’ve worked in and around small businesses, and now I spend my days helping women manage their business finances without fear or embarrassment. I can confidently tell you: your Xero file is not the worst I’ve seen. And no, I’m not judging.

But there are a few things I do wish more small-business owners knew – especially if they’ve ever felt behind, overwhelmed, or like they somehow missed the class where everyone else learned how to do this.

Avoidance isn’t laziness, it’s a nervous system response.

If your stomach flips or your brain fogs at the thought of logging into Xero, you’re not flaky or irresponsible. You’re probably overwhelmed or under-supported – but more than that, I’d bet you simply don’t have the capacity to take in new information in those moments.

When we feel unsure or threatened, our brains and bodies can shut down. It’s that “lights are on but nobody’s home” feeling. That’s biology, not failure.

Understanding your numbers shouldn’t activate your stress response. If it does, you need support that feels safer and slower – and you absolutely shouldn’t feel pressured to just “push through”. That’s when the overwhelm ramps up, everything feels harder, and suddenly you’re ready to burn it all to the ground.

We don’t need more information, we need transformation.

Yes, there are webinars, tutorials, e-books, and forums galore. But if you’ve ever sat through a 90-minute training and walked away more confused than when you started – join the club. Learning which buttons to press in your software means absolutely nothing if you don’t genuinely understand why you’re pressing them or what’s happening in the background.

What you really need is someone who can help you apply what matters to your business. Someone who can explain what’s important to you – and what’s completely irrelevant. Someone who can walk you through setting things up in a way that supports your brain and your bandwidth.

While AI tools can help, if the real issue is that you just can’t connect the dots between what’s on the screen and what’s happening in your business, they don’t always cut it. Even in an AI-powered world, there’s still so much to be said for personalised, human context – especially for neurodivergent business owners juggling a lot.

Shame around money often starts early but it doesn’t have to stay.

So many of us carry stories about “not being good with numbers,” usually dating back to how we felt in maths class. Add a couple of confusing chats with accountants, and it’s no wonder people freeze when it’s time to talk finances.

But here’s the kicker: you were never taught this properly. Nobody talks about how a handful of bad experiences with numbers can stop you from asking questions when you become a business owner (because spoiler: you don’t magically get gifted this knowledge when you get your ABN!).

This is not a reflection of your intelligence – it’s simply a gap, and gaps can be filled with the right guidance. 

This is where your bookkeeper comes in: You’re allowed to ask questions and you’re allowed to start again. You just need to find the person you feel safe asking that first question. After that, the rest tend to flood out.

Clarity in your numbers = confidence in your business.

When you know what’s coming in, what’s going out – and why  – you can make better decisions. Full stop. 

Understanding your numbers helps you price better, spot patterns, pay yourself consistently, and plan ahead without guessing. No more 3am panic about tax bills. No more winging it. While it might feel like it sometimes, bookkeeping isn’t just another chore on your to-do list – it’s the foundation for sustainable growth and peace of mind.

You don’t need to be a “numbers person”, but you do need to understand the basics.

You can absolutely outsource your bookkeeping if that works for you – but handing it off without understanding what’s being done leaves you vulnerable. At the end of the day, bookkeepers and accountants act on your behalf – and they can only work with the information you provide. If there’s a mistake, the ATO comes to you.

And if you choose to DIY? You don’t need to become an expert – but you do deserve support from someone who speaks your language. That means no jargon and no judgment. Just someone who can help you set things up in a way that makes sense to you.

If your bookkeeping feels heavy, scary, or soul-sucking, know this: it’s not because you’re bad at business. It’s because no one ever taught you how to do it in a way that actually works for you. And that’s something you can absolutely change.

The post Five things I wish all small-business owners knew as a bookkeeper appeared first on Inside Small Business.

A client said to me recently: “We’re bringing in over a million a year… but I still don’t feel like I’ve got control over the money. I never know if I can afford to pay myself more or if I’m about to get hit with a big tax bill.”

Sound familiar?

Most practice owners are growing fast, but they’ve never had the time (or support) to build proper financial structure. So instead of making empowered decisions, they’re reacting. They’ve got money coming in but one slow month or unexpected expense throws everything out of whack.

The problem is clear to me. There is no structure in their business and therefore they live with constant stress. I see it all the time. Seven-figure businesses will have one big account, where all the money lives, and no one knows what’s actually available to spend.

I realise it’s not that they’re “bad with money.”  They’ve outgrown their system or never had one in the first place. 

I have one main solution that works every time: give every dollar a job.

What you want to do is set up a money allocation system that gives you structure, visibility, and peace of mind. No spreadsheets required.

Here is the simple step-by-step version I use with my clients.

Step 1: Set aside time every week or every fortnight to check in with your money.

Book it into your calendar like a client meeting.

During this meeting, take a look at what came in, what’s due out, and how you’re tracking in each account.

This sounds simple but it’s also the thing most business owners avoid.

Awareness is everything.

Step 2: Split your income across four core accounts

Every time revenue comes in, you allocate it into these four buckets:

1. Operating expenses: This covers all your regular outgoings, rent, wages, tech, marketing, and any ongoing business costs. Use your average monthly spend to guide how much you’ll need to cover this consistently.
2. Tax: This one causes a lot of stress and for good reason. Here’s what to do:
   • Talk to your accountant and get a recommended percentage based on your business structure and obligations (including GST and company tax).
   • Then, every time money lands, move that portion into a dedicated tax account. No more guessing. No more scrambling.
3. Profit: This is not what’s left over. Profit is planned. This is the account that builds your business wealth and gives you breathing space. From this allocation, you’ll pay:
   • Yourself (owner’s pay)
   • Any bonuses or dividends
   • Long-term reinvestment
     This is how you start to feel the rewards of running a successful business, rather than just the pressure.
4. Cash buffer / business savings: This is your safety net. If revenue slows or something unexpected happens, this account gives you options. Your goal is to build this up to cover three to six months of expenses, including your pay. Even if you start by setting aside a small portion of each week’s revenue, it adds up fast.

This system works because when everything sits in one account, it’s almost impossible to know what’s what.

You see a big number and assume it’s all available to you. But it’s not.

When you split your income into clear categories, you take control. You make better decisions. You stop feeling reactive.

You can finally start building a business that supports you,  not the other way around.

This isn’t about perfection. It’s about putting a simple, intentional system in place so you can lead with confidence.  Because at this level of business, you shouldn’t be guessing.

You should know with clarity that your bills are covered, your pay is secured, and your business can weather any month.

Let your money work for you, not the other way around.

The post The simple 4-account setup that brings clarity to small-business cashflow appeared first on Inside Small Business.

The research revealed that 32 per cent of Australian small-business owners admit to being emotionally attached to their bookkeeper/accountant, with 45 per cent even confiding in them for advice beyond financial matters. 

Furthermore, 31 per cent have also admitted to sharing their biggest secrets with them, from secret shopping habits (35 per cent) to family secrets (nine per cent). As far as communication is concerned, 28 per cent of small-business owners admit to texting their bookkeeper/accountant at least once per day.

On the other hand, a staggering 46 per cent of Australian small-business owners admit that they spend less than three hours per week together with their partners (not including sleeping time).

According to the research, this unique relationship is founded on trust and loyalty, with 40 per cent trusting their bookkeeper/accountant more than friends or family with matters related to their business, and 46 per cent going to their bookkeeper/accountant for advice that goes beyond finances or accounting.

So, what are the benefits? The research revealed that accountants/bookkeepers can wear many hats. Majority (53 per cent) have said their accountant/bookkeeper makes them feel less anxious, especially with regard to their finances, and gives them comfort knowing everything is under control. 44 per cent have said that their bookkeeper/accountant has provided them confidence.

Furthermore, 29 per cent have shared that their bookkeeper/accountant has saved them between $5,001 – $10,000 per year and 15 per cent shared that their bookkeeper/accountant improves their relationship with their partner/love life by reducing financial stress.

The post Accountant or therapist? Small-business owners rely on their bookkeepers for emotional support appeared first on Inside Small Business.

This was revealed in the latest Airwallex Spend Management Report by Australian-founded finance platform Airwallex, which surveyed 500 senior finance leaders, including chief financial officers, of Australian headquartered companies, to identify the most pressing challenges and issues they are facing in spend management. 

The survey noted that overall, 88 per cent of respondents are facing challenges managing their global spend and expenses. Furthermore, 74 per cent admitted that their company’s current systems are inefficient and unreliable, which is seen to not only have contributed to their business’ stunted growth but also strained their relationships with suppliers and employees.

Drilling down on the matter of finance management challenges, 63 per cent acknowledged that they are still managing expenses manually, often relying on ‘archaic’ applications like spreadsheets. Overall, 60 per cent have either different tools or different processes for managing spend outside of their home market, which is seen as an indication of a lack of a unified approach to finance and spend across borders. However, 44 per cent shared that they are not satisfied with their current spend management solution while 51 per cent don’t believe their current systems provide adequate visibility into cashflow across regions.

Shannon Scott, SVP, Global Head of Product at Airwallex said that legacy systems and an increasingly global workforce are making it more difficult for finance leaders to manage spend and expenses. 

“Adopting more sophisticated financial solutions can be a game-changer for Australian businesses as they look to accelerate their growth beyond orders. A spend management platform that can handle cross-border transactions, multi-currency management and integrated vendor spend and employee expense processes can save businesses time, money and effort and be the lever that boosts growth and efficiency,” Scott said. 

The post Slow, outdated finance management tools stalling business growth appeared first on Inside Small Business.