The past few years have been difficult for small businesses across Australia, but there are positive signs of renewed optimism.
The National Australia Bank (NAB) Business Confidence Index reached +7 in July 2025 – its highest level since August 2022 – up from +5 in June. While confidence eased slightly in August (down three points), NAB’s latest SME Business Insights report shows that business owners are taking proactive steps to manage the pressures affecting their operations.
What’s Keeping SMB Owners Awake at Night:
NAB’s Q2 2025 SME Business Insights highlights three major areas of concern for small business owners:
- Cashflow management (44%)
- Profitability pressures (38%)
- Government regulation and compliance (37%)
In response, businesses are taking deliberate action. Half are cutting costs and renegotiating supplier agreements, while many are increasing marketing activity (37%), investing in staff and skills (29%), and revisiting pricing strategies (29%) to strengthen their market position.
Three Ways to Safeguard Your Business:
Addressing these concerns requires a planned, strategic approach:
- Strengthen Cashflow
Implement e-invoicing to accelerate payments, review pricing regularly to maintain healthy margins, and develop cashflow forecasts to identify and manage potential shortfalls before they impact operations. - Protect Profitability
Perform regular cost reviews to identify savings and streamline operations. Improved profit margins provide the funds to reinvest in equipment, people, and growth opportunities. - Stay on Top of Compliance
Remain informed about tax law changes, industry licences, and reporting obligations. Tools like the Australian Business Licence and Information Service (ABLIS) and the ATO Tax Time Toolkit can help you stay compliant and avoid costly penalties.
Challenging trading conditions will continue, but with clear financial planning and effective management, you can minimise risks and strengthen your business.
As your accountant, we can help you review pricing strategies, monitor cashflow, manage costs, and stay compliant – ensuring your business is well positioned to meet future challenges with confidence.
