The Cashflow Game – Heard of the 1% rule?

We know we go on about it a lot: cashflow planning. But we are accountants, after all. We wouldn’t be doing our job if we weren’t ensuring businesses are sustainable and profitable and that starts and ends with the game of cashflow.

And right now? There’s a lot happening off the board that could knock small businesses out of the game all together, if they’re not careful when it comes to managing their cashflow.

Australian Small Business: What’s changed or will be changing that will impact cashflow?

From 1 July, the compliance screws have tightened under new legislation. And unfortunately, it’s small businesses that are feeling the cashflow pinch the most (as usual).

Let’s break down what’s changed:

• No more tax-deductibility on the 11.17% ATO interest rate when you’re late on your tax bill. That’s a huge hit to your bottom line!
• The $20,000 instant asset write-off that many small businesses relied on? Gone.
• Stricter rules around superannuation payments for employees are rolling out next year —meaning late payments could land you in some trouble.
• And overall, the ATO is ramping up enforcement on tax debt and compliance, especially for small businesses behind on payments.

The message is loud and clear: small businesses must tighten their systems and start cashflow planning or risk being caught out.

Where the Cashflow Game Starts: The habit of improving by 1%

You’ve probably heard a lot of practical tips from us over the years, from blogs to one-on-one planning sessions, but today we want to give you a different perspective.

Because in all honesty: good cashflow health often boils down to good financial habits.

We accountants love systems, processes, and routines. Yep, we genuinely enjoy what many would consider ‘the mundane’ in life. But it’s often the small habits that can have huge impacts at the outset. At Proactive Accounting, we’re big believers in the power of 1% improvements—the idea that small changes, consistently applied, can lead to massive outcomes.

One of our favourite examples of this is in 2017, United Airlines shaved 28 grams off each inflight magazine which added up to 5kg per flight. Sounds insignificant, right? Especially with how heavy aeroplanes are! But, across their fleet, this small change saved 643,000 litres of fuel—and more than $350,000 per year, all by printing their inflight magazine on lighter paper.

That’s the kind of impact small and seemingly insignificant changes can have over time. So, let’s talk about 10 simple habits that if you choose to improve 1% on could improve your cash flow by significantly.

Our challenge to you is to choose just one cashflow habit to improve just 1% on this financial year…

10 Cashflow Game Habits to Improve on by 1%

1. Make Payments Easy
Can your customers pay you without fuss? Payment platforms like Stripe, Square, and Xero integrations remove friction and help you get paid faster.

2. Send Invoices Promptly
Ideally, invoice as soon as work is complete—or even after quote approval. The sooner it’s in their inbox, the sooner you’re top of mind. Can you even consider taking payment right then and there through systems like square payment as mentioned above?

3. Reconcile Daily, Not Monthly
Updating your Xero file each day takes five minutes, saves hours later, and avoids the “what was this for again?” end-of-month headaches.

4. Follow Up on Outstanding Payments
One phone call or email per week to chase overdue invoices can make a significant dent. Along with setting up automatic reminders.

5. Keep Every Receipt
Lost receipts = lost deductions. There are plenty of apps like Hubdoc or Dext to snap and store them on the go.

6. Don’t Forget Super
Paying yourself superannuation might feel like a luxury, but it’s tax-effective and builds your future wealth. Even $100/week can add up over time with compounding interest.

7. Log Those Kilometres
Vehicle logbooks often get overlooked. But keeping accurate records could save you hundreds, if not thousands, at tax time. Try an app like Drivers Note.

8. Review Your Spending
Are you still paying for subscriptions you don’t use? Ordering staff lunches a little too often? Small cuts can compound just like the United Airlines example.

9. Revisit Your Pricing
If it’s been more than a year since your last price review, it’s time. Rising costs mean your pricing should too. That being said, keep your industry and clients in mind to ensure you stay competitive.

10. Pay to Play: Get Advice
Winging it rarely works long-term. A business plan, solid financial strategy, and professional guidance can be the best investment you make. It’s that old saying “the most expensive advice is cheap advice” because you’ll be paying for it in the long run.

So, what now?

We know that managing a small business isn’t getting any easier. But with the right systems, mindset, and support, it can become more predictable, more sustainable, and a whole lot less stressful, especially at tax time.

So, the challenge: choose just one area of your accounting to improve by 1% and in 12 months take stock to see if the insignificant is suddenly significant. You’ll not only stay in the cashflow game but hopefully win while your at it!

At Proactive Accounting and Financial Services, we don’t just tick boxes—we help you take control of your business’s future.

Need help building better financial habits to grow your cashflow or how to navigate the latest compliance changes?

Book a Call with our knowledgeable team and let’s make your business 1% better—every day.