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.

The raise will take effect from the first full pay cycle starting on or after July 1, 2025.

As the first real wage increase since 2021, it’s a win for workers – though business advocates are unhappy. Organisations like Cosboa, ACCI, and the AI Group generally wanted no more than a 2.5 per cent increase.

“Today’s decision of a 3.5 per cent increase – which is above the current rate of inflation – will have ramifications for our small-business engine room,” said Cosboa CEO Luke Achterstraat.

What will this really mean for business?

The wage rise will only apply to about 20 per cent of the workforce, according to CreditorWatch Chief Economist Ivan Calhoun. If your employees are on individual contracts, you won’t have to foot the bill. You may, however, see a spending increase – typically a wage rise increases consumer spending and promotes some economic growth.

On the other hand, business advocates are worried about the impact on small businesses specifically – particularly because the raise coincides with an increase to the super guarantee, also from July 1.

Cosboa CEO Luke Achterstraat said many owners will need to personally absorb the higher wage costs if they are unable to pass them on to customers.

“Someone needs to pay here, and overwhelmingly that will be small business,” said Achterstraat.

There’s also the matter of ongoing uncertainty from trade and tariffs, plus continued low productivity growth. Calhoun said that these factors likely restrained the Commission from an even higher wage rise, but the burden on businesses will still increase.

“Living costs and business costs remain very elevated and have been a very large part of the pressures on many businesses in this cycle,” he said. “The rise makes it more important that businesses pursue productivity improvements.”

The post Minimum wage increase 2025: Here’s what it means for small business appeared first on Inside Small Business.

From 1 July, Australian homes and small businesses will have access to a new federal battery rebate that could significantly reduce the upfront cost of storage systems. 

Don’t let the name fool you, while it’s called the Cheaper Home Batteries Program, it’s available to eligible businesses too.

The rebate will be delivered through the existing Small-scale Renewable Energy Scheme (SRES), which is already familiar to many solar owners. It works through the creation and sale of small-scale technology certificates (STCs), with the government footing the bill. 

Importantly, that means no additional cost to consumers via energy retailers, and no confusing changes to energy bills.

Over and above sustainability, for small and medium businesses (SMEs), it’s a practical, well-structured incentive that can help cut power bills, improve energy reliability, and boost long-term competitiveness.

What’s on offer

The rebate offers around $372 per kilowatt-hour of storage capacity, capped at 50kWh, for battery systems between 5 and 100kWh. To be eligible, the battery must be installed by a Clean Energy Council (CEC) accredited installer and be Virtual Power Plant (VPP) compatible.

You can install a system before 1 July, but you won’t qualify unless it’s activated after that date. The rules are clear, so timing matters.

Why it matters to business owners

For SMEs that operate during the day (retailers, clinics, small manufacturers, hospitality) batteries help avoid those painful peak tariffs. You store solar when it’s plentiful and use it later, rather than drawing from the grid when prices spike.

We’ve worked with clients who’ve shaved thousands off their annual energy costs with the right setup. But the benefits go beyond bills. For businesses where a power outage means real disruption or lost income, battery storage can become like business continuity insurance; think food service, refrigeration, and medical clinics.

But don’t rush in

There are a few important things to consider. First, the upfront cost is still a hurdle, even with the rebate. Only eligible batteries and certified installers will qualify, so do your homework. And if you activate your system before 1 July, you’re out.

It’s also not the best fit for every business. If your power usage is low or mostly after hours, the return might not stack up.

How to work out if it’s worth it

Start with your power profile. When do you use the most electricity? How much solar do you already have? Is your usage consistent, or does it spike at certain times?

A good provider will help you model your expected savings, return on investment, and payback period. It’s also worth looking at finance options. There are green loans, asset write-offs, and lease arrangements that can ease the upfront pressure and make the switch more manageable.

Batteries are more than bill reducers

Battery storage also goes beyond dollars and cents. It can offer businesses more control. It builds independence from grid volatility, protects against price hikes, and opens the door to opportunities in the VPP space, where stored energy can be resold or used for bill credits.

There’s also the EV charging angle. If your business is moving towards electric fleets or wants to offer EV charging for staff or customers, battery systems can help reduce demand costs and avoid expensive infrastructure upgrades.

And let’s not forget sustainability. Whether you’re actively reporting on emissions or just trying to stay ahead of customer expectations, battery storage strengthens your ESG credentials. People notice when a business is walking the talk on energy.

Final thoughts

This scheme is a practical move by government. It doesn’t overcomplicate things, and it gives small businesses a real shot at future-proofing their energy. In our business, we see the benefits of battery storage every day; and we know how much of a difference the right system can make.

If you’re running a business with solar on your roof, or are planning to install solar, and have a decent daytime energy load, now’s the time to run the numbers. The support is there. The savings are real. And the sooner you start planning, the better your chances of locking in a smarter, more resilient setup.

The post Labour’s new battery saver scheme: Is it worth it for your business? appeared first on Inside Small Business.

Freelancers become their own bosses to control their income, set their rates, and finally escape the salary caps of traditional jobs. So why are so many now handing that control straight over to a machine? Why trade the boss who capped your pay for one that’s now setting your income using the same tool you asked last week, “Why does Instagram keep cropping my carousel?” or “What even is the aspect ratio for Reels in 2025?”

I’ve been watching too many brilliant freelancers and creative business owners hand over their pricing decisions to AI and it’s not only costing them money, but confidence in what they charge.

Don’t get me wrong, AI is brilliant for so many things. On any given day, the titles in my ChatGPT sidebar sound like the inside of my brain at 3PM: “Dinner Ideas,” “Birthday Card Copy,” and “Instagram Aspect Ratio Fix” (because that latest IG update completely wrecked my feed layout). But when it comes to pricing your services? That’s where things get messy, and potentially very expensive.

AI pricing sounds clever, but it’s not strategic

AI tools are trained on patterns, not profits. They trawl the internet, average out all the data they find, and spit back a number with absolutely zero context about your actual situation. Sure, it’s quick and feels efficient, but it completely misses the things that matter most; your income goals, your capacity, your delivery model, and most importantly-the actual value of the results you’re providing to your clients.

It keeps you stuck reacting to averages instead of building a pricing model that reflects the way you work and what you want to earn. When AI looks at a market full of undercharging freelancers, it decides you should undercharge too. And just like that, you’re not leading your business, you’re following the lowest bidder.

It’s also surprisingly bad at math

Seriously, it sucks at math. AI is a language model, not a calculator. It’s trained to predict words that sound right, not compute numbers that are right. you may as well let a magic 8-ball tell you what to charge.

It doesn’t account for non-billable time, holidays, sick days, or admin. It just makes the maths sound plausible and plausible isn’t profitable.

It locks you into the lowest rung

This is the cost of treating AI like a pricing authority. Because it relies on what’s already out there, regardless of whether it’s working, you end up with recycled rates based on what undercharging freelancers are currently doing.

AI won’t challenge the status quo. It reinforces it. If you want to price like someone who’s done this before? You need to think beyond the middle of the pack.

It also sets you up for burnout 

Low prices mean chasing too many clients, taking on way too much work, and running at maximum capacity just to make ends meet. AI doesn’t understand the reality of client work, things like scope creep, the emotional labour of managing difficult clients, or all the time spent on client communication. 

Ok, so what do I do instead? 

Look, I’m not saying you need to throw out AI completely. But you absolutely need to take back control of your pricing decisions. Here’s how to do it properly:

Start with your actual numbers 

Begin with your annual income goal, add on your costs of doing business aka expenses, factor in tax, and time off. Realistically look at the hours you have to serve your clients and set aside time to work on your business. Calculating your hourly rate isn’t emotional, it’s logical, and it needs to set the value of your time so you can use it to build your spread of offerings.

Build offers that solve problems 

Stop charging for time and start charging for the problems you solve. Highlight the value your clients get, not just the task list you’ll complete. People don’t solve expensive problems with cheap pricing, and more often than not a lower price scares a smart client off than entices them.

Use AI after you’ve done the strategic thinking 

Once you’ve sorted your pricing strategy, then let AI help you with the implementation:

• Draft your service page copy
• Tidy up proposals
• Generate follow-up emails

But don’t let it take the lead for your pricing decisions. That’s your job.

AI is a tool, not a business compass. Let it support what you’re building, but don’t let it steer the ship. Getting your pricing wrong could cost you tens of thousands. You’re far too smart –  and way too talented – to work that hard for that little. Trust me, future freelance you will thank you for it.

The post Using AI to price your services? Here’s what you’re missing appeared first on Inside Small Business.

Tune into any form of business news these days and you’ll hear about the latest start-up that’s just raised millions through venture capitalists. It’s an exciting world full of big, bold growth stories – and for a lot of business owners, it can start to feel like the ultimate benchmark for success.

But that narrative can be misleading.

“It’s really easy – and culturally accepted – that VC funding or a capital injection is like the silver bullet to growing your business,” says Carolyn Breeze, CEO of Scalare Partners. “But what we don’t talk about when we see these articles with people raising big amounts of money is how much of their business they’ve actually given away for that capital.”

Carolyn is an investor and mentor who has helped hundreds of small-business owners decide if raising capital is the right move – and, if so, when and how to do it well.

Talking to Inside Small Business Editor Mia Lockett on this episode of The Small Biz Fix podcast, Carolyn mentioned a few things you should do now if you think investment is in your business’ future. Here they are:

1. Define your investment “why”

It’s easy to get caught up in the excitement and glamour of start-up culture and believe that you need investors to “make it”. But investment is not a silver bullet, says Carolyn Breeze, CEO of Scalare Partners – it’s a huge commitment. Not only are you giving away a slice of your business, you’re also putting yourself under big time pressure, in some cases.

“There’s time pressure on your business when you take VC funding,” she says. “You need to be meeting certain milestones and heading towards a certain exit in a certain amount of time.”

There are many reasons why investment might not be for you. If you do decide to do a capital raise, have a firm grasp of your “why”. We discuss the factors to consider in the podcast, but as a quick point of reference, let’s look at Christie Whitehill – the founder of INTU Wellness, who shares her investment journey on this episode.

The reason that Christie chose investment for her venture was to respond to growth opportunities that were already on the table.

“We’d had some really great traction in the market, sales and revenue was fantastic, and we also had our contract with Mecca on the table,” she recounts. “Raising allowed us to grow a lot faster.”

In other words, if you don’t have a strong reason for needing investment, you’re probably better off considering other forms of funding instead.

2. Know when the right – and wrong – time to raise capital is

Let’s say big things are on the horizon for your business – new customers, a big retail client, or an exciting product launch. You might consider this the perfect time to woo an investor with promises of big growth and a generous ROI.

But Carolyn recommends you pause and think about it before you go running to your closest VC firm.

“If you can see the horizon to some kind of revenue and some wins pretty early, I would hold off if you can, because it means that your business is going to be worth a lot more post those customers coming on and using your product or service,” she says.

Carolyn says that some business owners come to her looking for investment to finish that last little bit of their product, or hire a few people, in order to secure an important client. In these cases, she recommends they consider lending – or a grant.

Of course, it all depends on your situation – in Christie Whitehill’s case, she decided investment was the way to go. But Christie says that it wasn’t just money she was after when she was facing down the big deal with Mecca. What she wanted were advisors who happened to have a financial stake in the business. Her investors had all built big retail brands before, so she knew she was getting their invaluable expertise, not just their money.

“We needed that support because I don’t think businesses can grow on their own,” she says. “They grow because of a whole heap of people believing in them and making them happen.”

3. Start building your network now

Christie says she started speaking to investors well before she wanted the money. She established relationships by asking for coffee catchups and advice from investors in her industry.

“I say, ‘Hey, I just want to have a coffee or 15 minute call. I just want to tell you what we’re working on – it’d be great to get some advice from you,’” she says. “Then I say, ‘Can I stay in touch and keep you updated as to what we’re doing?’”

While you can look for investors on websites like Airtree Ventures, Christie says she uses networking avenues – like LinkedIn or even her child’s soccer game – to make connections. 

Meeting investors well in advance also means you’re able to vet them first. The last thing you want is to bring someone on to your company who turns out not to align with your values and beliefs.

4. Capital raising is a full-time job – start preparing early

For Christie, the journey from decision to raise was eight months.

“It was about a two month process just to pull together the documents I needed,” she says. “And that was me working full time just on the cap raising process. So it’s definitely a time consuming process. Anyone that is thinking about it, it doesn’t happen overnight.”

It might take longer than you think to get your business ready to pitch, so getting ready now could be a good idea. If you’re brand new to investment, get educated now so you know what you need. Resources like this podcast could be a good starting point, or there are a variety of websites out there that can give you an overview.

The post The Small Biz Fix episode 3: Thinking of business investment? Here are four things to do right now appeared first on Inside Small Business.

When it comes to increasing prices, most small business owners do this in secret – quietly tweaking their price behind the scenes, hoping no-one notices and praying it doesn’t scare off potential clients.

However, staying silent is a missed opportunity. When we boldly declare our new rates publicly instead, we’re able to create a strategic sales push for the business.

In my experience, a public price increase is actually one of the smartest ways to get more eyeballs on your business, reposition yourself as the go-to in your industry and of course, boost sales. I’ve seen clients double their income in a month by simply announcing a deadline for their current rates.

As the end of the financial year approaches, there’s no better time for business owners to review their pricing and start announcing it out loud.

Here are four benefits of publicly increasing your prices:

It positions you as someone who’s in demand

When you can show that the business is evolving, there have been new innovations, enhancements to customer service or staff qualifications it immediately boosts your authority. Customers are constantly looking at which companies are innovating and growing, so new pricing cements you as someone worth investing in.

It creates natural urgency and encourages people to take action.

A public price increase is perfect for business owners worried about ‘sleazy’ sales because it creates natural, authentic urgency. Having a deadline in place for when your new rates begin encourages people to get off the fence and make a purchase without you feeling pushy.
It builds trust with your clients by being transparent with your rates.

Customers value openness of communication. When you present an opportunity to purchase before the pricing increases, potential clients are more likely to trust you. There’s nothing worse than a price changing without warning or quotes becoming invalid because you haven’t been transparent about upcoming rate increases.

It increases the overall visibility of your business

Whilst you will get an income boost before the end of the financial year as a result of your strategic sales push, your business will also reap the benefits throughout July and beyond thanks to all your extra marketing efforts.

How to raise prices right

I have coached hundreds of women through a public price increase, here are my top tips for ensuring yours is a success:

1. Get confident with your new price first

The reason most new pricing falls flat is the business owners lack of belief. Before you announce your new rates, always ensure you’re able to confidently own them and speak them out loud with conviction. When you’re seen as unapologetically owning your new prices, it’s much more likely to resonate and land with your audience.
If you can’t say your prices without feeling flustered, you’re not ready to market the price increase yet.

2. Get the timing right

If you tease the price increase too far in advance it loses potency and momentum. Similarly if you drop it with just one week to go, people feel too rushed and it will miss the mark.
Ideally give people approximately two to three weeks notice to see your marketing, understand the new pricing and deadline, then take action.

3. Don’t overjustify or blame

Nothing screams ‘I don’t believe in this price’ more than overcompensating. Whilst I recommend sharing some of the ‘why’ behind the shift, this should come from a place of business evolution, customer service and demand.

One of the biggest mistakes I see business owners making is blaming external factors for their price increase, such as the ‘cost of living’ or ‘I’ve got bills to pay’ etc. Your customers don’t care about this stuff, and the blame game feels unprofessional and icky.

4. Speak about it often

Don’t just send one email or share one social media post and think that will have the desired impact. To do this well you need to treat it like an actual marketing campaign with regular strategic emails and social media content consistently in the lead up to June 30.

This is also a great opportunity to ensure it’s clear on your website – consider adding some information to your homepage or a banner/pop-up across your site. Including details to your LinkedIn profile and Instagram bio will also remind people of the deadline.

5. Ensure you’re following up

It’s important to keep in contact with any open leads so they have a chance to purchase before the deadline. Ensure you continue to follow up and send reminders, as people are busy and often need the check-in. This retains client trust and avoids any difficult conversations on July 1 with those who have outstanding quotes that are no longer valid.

A public price increase isn’t just about charging more, it’s actually one of the smartest ways to build authority, get your business seen and boost sales. I highly recommend deploying this in your business so you can finish the financial year strong and set yourself up for success from July onwards.

The post Why you need to raise your prices loudly before EOFY appeared first on Inside Small Business.

Concerns regarding cashflow rose from 34 per cent to 43 per cent from the same period last year, with profitability concerns rising from 30 per cent to 38 per cent, making these the biggest issues faced by small business owners. 

Forty-eight per cent of those in the retail industry cited cashflow as their biggest concern through the report.

The report found worries around inflation eased from 33 per cent to 30 per cent, concerns around staff turnover had decreased from 35 per cent to 29 per cent, and worries regarding red tape was down from 35 per cent to 27 per cent.

The survey also found that 50 per cent of small business owners were cutting costs and seeking better terms with suppliers to address these concerns. 

Nearly 37 per cent of small business owners were planning to increase marketing efforts and 29 per cent were reviewing their cashflow and working capital processes. 

Twenty-eight per cent of business owners were changing their pricing strategy and investing in training employees, with 28 per cent improving customer communications and management. 

The post What SME owners worry about the most: New NAB survey reveals the list appeared first on Inside Small Business.

For small-business owners, late payments aren’t just emotionally draining – they can be financially ruinous. Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson states that late and unpaid invoices are among the biggest challenges SMEs face today. His office exists to advocate for small businesses and provide resources to help them navigate issues like payment disputes.

“The main [reason] is largely just how challenging the business environment is, and that there’s margin squeeze happening across the small-business economy,” Bruce says.

“More than two-in-five cases we help with now involve a payment dispute. [Before Covid-19], we’re talking about less than one-in-four. It’s been a substantial uptick.”

“I feel like it’s almost a rite of passage to have had a non-payer,” says Jasmine Parasram, a sole trader of 15 years who owns two small businesses: Jasmine Designs and Creative Business Kitchen. Jasmine has dealt with so many of these situations over the years that she now helps other business owners navigate them under the moniker of “the Pricing Queen”. 

“The average freelancer has $20K worth of unpaid invoices in their inbox,” Jasmine explains. “But it gets less and less common the more you learn the lessons.”

If you’re facing payment problems, you’re not alone – and this article is for you. It will explore, in simple terms, what your options are when chasing up elusive payments. We’ll go over why payment disputes happen, how to prevent them from happening, and what to do if you end up in a situation where someone isn’t accepting the bill.

Why payment issues happen

As Jasmine explains, it’s common for business owners to blame themselves for payment mishaps. 

“The guilt and the shame that comes from it is massive,” she explains. “The freelancers often blame themselves, because there are things that they could have done, like withholding deliverables until the whole amount is paid, or being brave enough to speak up and call out bad behaviour.”

But non-payment isn’t a ‘you’ problem. You’ll be unsurprised to find out that the most common cause is financial difficulty, the ASBFEO states. It’s not just the high cost of living, either. With the ATO now cracking down on small-business debt, many are prioritising these repayments over paying larger businesses. In other words, if someone isn’t paying you, it’s most likely because they simply can’t afford to do it.

With that in mind, it’s important to be careful about how we view payment disputes, Jasmine says.

“Everyone seems to take payments personally,” she says. “It’s not a personal vendetta. It’s not against you, it’s not an emotional thing.”

How do you prevent payment problems?

Nobody wants to have to chase up payments, so how do you prevent payment pickles in the first place?

It starts with avoiding clients who are likely to cause issues, both of our contributors argue. If your potential client is another business, Bruce says that you may want to check with a credit reference bureau, such as CreditorWatch, to understand their current financial situation. If the business has a few outstanding debts, especially to the ATO, engaging with them is probably a bad idea.

When it comes to the sort of problems you’ll run into with large businesses, Bruce explains that changing payment terms are usually the issue.

“The larger [companies] tend to just change the payment terms unilaterally, and a small business supplier’s sort of stuck with it, particularly where they’re so dependent on that relationship,” he says.

The government has introduced a payment times reporting register to help keep large businesses accountable. Unfortunately, Bruce says, this is often complicated to use, so it’s not easy to get quick information as an SME supplier about who is honouring payments and who is not.

In Jasmine’s experience, one of the biggest mistakes you can make is not following your gut feeling when meeting potential new clients.

“Some clients, you can tell they’re going to be shitty payers,” she says. 

You also might need to be wary of more than just payment times. Even if a client has the funds to pay on time, you can lose your valuable time to nitpickers, hagglers and those who don’t appreciate your value.

“I’ve turned clients away at the beginning,” Jasmine says. “It hasn’t necessarily been because I think they’re going to be bad payers. It’s the ones who control the creative process, the ones you haggle over the price, the ones that suggest you take shortcuts.”

To make the process of deciding whether to take on a client easier, Jasmine created a quick-reference “client contemplation” flowchart for her Creative Business Kitchen community:

Preventing payment issues after you’ve taken on a client

Aside from simply not getting involved with the wrong people, there are some other steps you can take to prevent a mishap from occurring after you’ve taken on a new client.

The first, and most obvious, is to have a watertight contract ready. An excellent contract will “show the battle scars” that an experienced small-business owner has obtained over the years, Jasmine explains. 

Crucially, it should involve a process for collecting payments in case of difficulties, both Jasmine and Bruce say. For instance, you might add a percentage to the bill for every week of non-payment, to cover the time spent chasing after the money. You may want to cap this interest up to a certain sum, but it’s a good way to cover yourself in case of a payment pickle.

If anything goes awry, you can refer back to your contract. It takes some time and emotion out of advocating for yourself, because, as Jasmine points out, the client has already agreed to respect your time and money.

“[The client] agreed that if they don’t pay extra, the next steps in the process are the responsibility of both you and them to navigate,” Jasmine points out.

Another way to protect yourself: Always delay key deliverables until you actually get paid.

“More often than not, people are in a position where they feel uncomfortable about charging, especially as a freelancer, so they avoid it by starting to do the work because they’re so excited, or delivering everything before they get paid,” Jasmine explains. 

Finally, consider setting up a direct-debit system when collecting payments. That way, money comes straight out of your client’s account when it’s payment time.

“I personally use GoCardless, where it just automatically charges them and then gets that payment from them,” Jasmine says.

What to do if someone isn’t paying

Let’s say you did your due diligence on a client, your gut feeling was good, but now there’s a payment problem. It happens. What do you do?

“The advice that we provide is to make sure the party that owes you the money is aware that you are owed the money,” Bruce says. “Just: ‘How are you going? Just a quick call, I noticed that payment that was due today hasn’t come in. Have you got all the information you need? Is the invoice what you expected?’

The ASBFEO has found a rise in cyber scams involving invoice substitution, where a criminal changes your bank details on an invoice to redirect payment elsewhere. This can be something to watch for – or a pretext to check in with your client while showing helpfulness and concern, Ombudsman Bruce points out.

“Even confirming that [the invoice] has landed with the right people and that your account details are accurate – that’s a good early call,” he says.

If you’re uncomfortable about going after what you’re owed, you’re most definitely not alone. Being uncomfortable asking for money is a common problem among business owners, Jasmine says. 

“They feel very uncomfortable about it when they put it as ‘asking for money’. I put it as ‘letting people know the bill’,” she says. “You wouldn’t expect to eat an entire meal at a restaurant and walk out the door without paying. So the same thing is true when you are running a business.”

When you are ‘collecting the bill’, it’s always useful to make the process less personal; Bruce and Jasmine suggest setting up automations around payment, like invoicing services that send the bill to your client’s inbox automatically.

“Remove the emotion,” Jasmine advises. “They’re not emotional about the money, neither should you be.”

What if a client says they can’t pay you?

If someone can’t pay you, a good first step is to ask for a portion of the money – or put them on a formal payment plan.

“You might say, ‘Look, can I get some of it in the bank? Because I’ve got my bills to pay as well. And if you’re in a tight spot now, is there some portion of it you can pay now?’ ” Bruce says. “And then you can talk about a payment plan or something like that.”

This step is about levelling with the person and keeping everyone’s dignity intact. The Ombudsman points out that you don’t want to burn any important business relationships unless you really have to do that.

“If you get to the point where you think nothing’s changing and you’re doubting whether there’s a genuine interest, it may be time to issue a letter of demand – a more formal notification that you’re owed money,” he adds. “And we provide some resources to help people do that, because often it’s the first time they’ve had to chase up and they’re not quite sure what their moves are.”

Business.gov has a useful resource page for writing a letter of demand, including a template you can base yours off.

If a letter of demand doesn’t work, you might want to bring in a third-party resolution service. The ASBFEO website also has a resource for finding the right service for you – see https://asbfeo.gov.au/disputes-assistance/dispute-support. The online tool asks you a number of questions about your issue, location and business, to point you towards the body that can best help you. It also provides a range of ways you can contact each body.

You do have legal and consumer law obligations when contacting other businesses about debt; read the debt collection information on the Australian Competition & Consumer Commission (ACCC) website.

You can also contact a debt-collection agency to help you recover expenses; it may be best to inform your customer that you plan to use one. If you’re going down this road, the ACCC has put together some debt collection guidelines for collectors and creditors.

If the dispute is heating up, but you don’t wish to go to court, you may consider alternative dispute resolution, such as mediation. ADR’s benefits include lower costs, quicker timeframes, confidentiality, and a more flexible and collaborative dispute resolution process. Once again, the ASBFEO has a resource for finding an ADR practitioner in your state who can help you, or you can search the Mediator Standards Board website to find a nationally accredited mediator.

You can also lodge a complaint through your state or territory’s Fair Trading agency, which can act as an informal negotiator.

Taking the matter to court should be your last option, the ASBFEO warns. While some small-business owners manage to resolve issues in a small claims court, the process is usually expensive and time consuming. 

Further resources

• The ASBFEO offers a range of dispute support services.
• Business.gov.au offers a range of resources and guides on payment issues. See: ‘What to do when you haven’t been paid’ and ‘Resolve disputes’ pages.
• See the ACCC’s debt collection guidelines if you’re thinking of using a debt-collection agency.
• If you need mental health support, NASBO (NewAccess for Small Business Owners) is a guided self-help mental health program that aims to support you in overcoming a particular program, such as a payment dispute.
• Call the free small business debt helpline on 1800 413 828 if you’re in financial difficulty.
• The Small Business Mentoring Service provides low-cost mentoring in all areas of running a business.

The post Late payments and unpaid invoices: How small businesses can protect themselves appeared first on Inside Small Business.

Not sure where to start? We’ve brought on four superstar accounting professionals to help us put together a comprehensive EOFY to-do list. That means actions you can take now to set yourself up for success next financial year.

Save yourself the stress and anxiety, get your ducks in a row now, and come into July 1 feeling fresh, organised, and prepared.

1. Find an accountant you love

If you don’t have a tax professional that you trust with your life (or your business), now is the time to find one.

• Understand what you need your accountant to be able to do. For instance, if you need someone to help you with tax-related tasks, make sure you seek out a registered tax or BAS agent. If you’d like someone to help you out with accounting software, make sure you seek out someone who is across technology. Always use the Tax Practitioners Board Register to find a registered tax agent.
• Book check-ins with your accountant throughout the year, not just when BAS is due or at tax time.

“These check-ins aren’t just about ticking compliance boxes – they’re about strategy, clarity, and making sure your business is actually working for you.”

Catarina Santini, business advisor, accountant, and tax agent

2. Educate yourself

Whether you’re a brand-new entrepreneur or a seasoned business owner, you should be across your own finances.

• Browse the ATO’s Tax Time toolkit for small business, which they describe as a “one-stop shop” for tax-related help.
• If you’re after more structured learning, check out the ATO’s “essentials to strengthen your small business” platform; this offers short courses on topics like record keeping, cash flow and deductions.
• Each quarter, the ATO changes shares its small-business focus areas to help small-businesses and their tax professionals understand how they can get and stay on top of their tax, super and registry obligations. You can check this on the ATO’s website: “Small business focus areas”.
• Look up whether any legislative changes are coming up that might affect you. If you have employees, for instance, check for any upcoming changes to awards on the Fair Work Ombudsman’s “Major award changes” page, for instance.

3. Review your needs and obligations

Maybe your turnover has increased, you’ve employed new staff, or the nature of your business has changed? There are many cases in which your business’s needs and obligations might have changed. Review how things have changed for you in the past financial year and what that might mean.

• Review insurances: Do you need extra cover due to changes in business activities or income? Or are there insurances you no longer need?
• Review payroll tax obligations in your state, if you have employees.
• Check if you need to register for GST for the first time, or if you will need to soon.

4. Get organised

If you’re not keeping track of sales, money might be going down the drain. Keeping receipts is essential; if you’re ever audited by the ATO, bank statements won’t cut it.

• Use the ATO’s record-keeping evaluation tool to help you evaluate your current system, if you’re unsure about it.
• Consider using the ATO app if you’re a sole trader.
• Assess whether you (really) have a system that allows you to log invoices, receipts and expenses both regularly and accurately. If not, it’s probably time to get your accounting software in order (see below).

5. Set up new software

If you need new software, make sure you leave plenty of time to get it working (and integrated into your processes) before the new financial year starts, to set you up for success.

• Assess your existing accounting software – is it working for you? Can you create efficiencies? If you want to change software or start using it for the first time, leave plenty of time to research and implement. 
• Book a training session with your accountant (well in advance of June 30) to help you set up new software, if you feel you need to do so.

6. Create some quick cashflow wins

• Review pricing – compare your rates with industry standards and factor in rising costs.
• Set up an automated transfer to send some money to a dedicated tax/GST savings account.
• Use the ATO’s Cash Flow Coaching Kit, which has tips to help you meet tax and super obligations without them getting caught up with your business cashflow.
• If you’re struggling to get paid on time, consider automating invoices and setting up direct debits from clients.
• Check your bank accounts for long-forgotten free trials etc – services you don’t use or seldom use. There are software services that can help you do this, for a small fee.

7. Calendarise your year

Make it easier for yourself to keep up with key dates by putting them in your calendar now.

• Ask your accountant for key tax dates – or find them on the ATO website – and put them into your calendar.
• Mark down upcoming legislative changes that are relevant to you. The ATO also has on its website a page dedicated to tracking upcoming legislation and a small-business newsroom. You may also want to ask your accountant about this if you’re unsure what will affect you.
• Map out income and expenses ahead of time, as best you can.

8. Identify (and prepare for) deductions

Make sure you’re not missing out on any deductions. Your accountant should be able to help you work out what you can deduct.

• Identify potential tax deductions: home office expenses, vehicle costs, professional development, underused assets and excess stock, bad debts, and so on.
• Identify pre-paid business expenses – like insurance premiums or telco services – and ask your accountant whether you can get an immediate tax deduction on them.
• Ensure that all June-quarter superannuation contributions are paid by June 30, to accelerate the tax deduction.
• Consider voluntary super contributions before year-end to maximise tax benefits and boost retirement savings.
• If your business is looking to pay bonuses, put in place a properly executed bonus plan by  June 30 to claim the deduction this year. 
• Consider how your trading stock is valued. Trading stock can be valued using different methods for taxation purposes – at cost, market value or replacement value. Changing the valuation method at year-end for tax purposes can either bring forward or defer an amount of taxable income so it pays to look closely at the method adopted.

“Provided they are used for business purposes, for instance in work recreation areas or office receptions, it is even possible to claim items like TV’s, gym equipment, works of art and computer gaming terminals. If you’re claiming more left-field deductions like these, make sure you keep proper records.”

Mark Chapman, Director of Tax Communications, H&R Block

Thanks to the following tax and accounting experts who contributed to this checklist.

The post The comprehensive EOFY checklist for small-business owners appeared first on Inside Small Business.

Hospitality isn’t short on challenges in 2025 – heightened costs, evolving customer expectations, and changes in consumer spending continue to test even the most experienced operators.

Hospo businesses are having to make some hard decisions to survive. According to Lightspeed’s Dining Dynamics and Hospitality Insights Report, 53 per cent have raised prices, 41 per cent have changed or renegotiated with suppliers, and another 41 per cent have adjusted their menus.

Unfortunately, these shifts can create friction with customers if they aren’t communicated clearly.

Two strategies are emerging as important for small hospitality businesses: flexible pricing and transparent communication.

Flexible pricing models: An alternate to raising prices

Flexible pricing allows venues to offer options that meet different needs, budgets, and occasions.

Take a neighbourhood café that offers smaller portions at lower prices. It’s ideal for lighter appetites, solo diners, or those looking to save – and it helps reduce waste.

A brunch spot might let guests add premium toppings like avocado or feta for a small fee. These upgrades feel custom, letting diners tailor their experience, and can help lift average spend per head.

At a wine bar, tiered tasting platters – small, classic, premium – can anchor value perceptions and drive upsells without pushy sales tactics. Similarly, happy hour deals or weekend surcharges reflect demand-based pricing in a way guests intuitively understand.

Almost half (41 per cent) of venues plan to offer tiered pricing or portion sizes in 2025, and 42 per cent plan to provide premium upgrades. When done well, these tactics can give guests more control over their experience, reduce decision fatigue, and encourage repeat visits — all while helping venues lift margins and manage costs.

Why clearly communicating pricing builds loyalty and reduces friction

A well-priced menu can invite curiosity; a well-explained one can build trust. In today’s climate, how you communicate pricing can be just as important as the pricing itself. Clarity removes friction, avoids awkward surprises, and shows respect for your guests.

Here’s how to make pricing communication work harder for you:

• Lead with clarity, not complexity. Avoid vague labels like “market price” or “seasonal surcharge.” Be upfront – for instance, “+$2 for locally sourced free-range eggs.” Customers can be more receptive when they see the value.
• Keep your pricing consistent everywhere. Whether it’s your physical menus, online listings, QR codes, or delivery platforms, mismatched pricing erodes trust. A quick check-in across channels can prevent confusion.
• Use visual cues and price hierarchy to guide choices. Just like bakeries display per item, sets, and platters to highlight value, menus can do the same. Clear formatting and a balance of price points help steer decisions without the hard sell.
• Train your team to explain the ‘why.’ Even the best signage won’t help if staff can’t confidently explain pricing. Empower your team to speak to the quality, sourcing, or portion sizes behind the numbers.
• Be transparent about surcharges and tips. Explain the purpose of surcharges and where tips go. Clarity here builds goodwill and can show your venue values fairness.

Pricing transparency isn’t just good hospitality, it’s a brand strength. It shows guests that your venue is thoughtful, consistent, and committed to the customer experience. When communication feels clear and considered, it builds trust – and trust keeps customers coming back.

The post The new rules of pricing: How to survive rising costs as a hospo biz in 2025 appeared first on Inside Small Business.