Nearly 80 per cent of Australian small to medium businesses (SMBs) have experienced impact to their cash flow in the last 12 months, according to a new survey commissioned by CommBank.
According to the research, the most common factors impacting cash flow are declining revenue (35 per cent), low cash reserves (30 per cent), and seasonal fluctuations (27 per cent).
The vast majority (85 per cent) of surveyed businesses employ one or more specific strategies to manage cash flow, such as reviewing or decreasing expenses (34 per cent), maintaining a cash reserve (27 per cent), finding additional revenue streams (26 per cent), and increasing sales and/or pricing (25 per cent).
However, more than a quarter of Aussie small businesses (27 per cent) dipped into personal savings or didn't pay themselves a salary, or both, in the last year.
According to CBA Executive General Manager Small Business Banking, Rebecca Warren, cash-flow strategies are important for long-term business success, and it's crucial business owners have the knowledge to help them apply strategies that are right for them.
"For small businesses, success often hinges on a delicate balancing act as they constantly juggle various aspects of their operations, from managing customers and employees to dealing with suppliers and vendors. It's not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMBs.
"While it's encouraging to see small business owners take proactive steps to manage their cash flow, some of those strategies - like dipping into savings or not paying themselves a salary - may not be what's best for the business or the business owner for the long term," Ms Warren said.
Effective cash flow is crucial to the success and sustainability of small business, which is why CommBank is partnering with the Australian Graduate School Management at University of NSW Sydney Business School (AGSM @ UNSW Business School) to create a tailored course to help small business owners better understand and optimise their cash flow.
The Cash Flow Management course includes expert advice, strategies and easy-to-use tools that will empower small businesses to manage their finances with confidence. It's available online, giving business owners the flexibility to learn at their own pace.
This short, practical course is available free of charge to all 2.5 million Australian small businesses, regardless of whether they're a CommBank customer. Professor Nick Wailes, Dean of Lifelong learning at UNSW said:
"We recognise the vital role small businesses play in the Australian economy and are dedicated to equipping them with the tools and knowledge needed to navigate complex financial challenges. This partnership with CommBank demonstrates how working together can address real-world business needs."
The partnership with AGSM @ UNSW Business School comes as more than half (53 per cent) of business owners expressed a desire to undertake a course or training to help with business management.
"The Cash Flow Management course is designed to provide practical insights that empower business owners to make informed decisions and build financial resilience. By offering this course, we aim to reach as many small business owners as possible, helping them create sustainable growth and secure their future in an increasingly challenging economic environment," said Prof. Wailes.
CommBank customers have access to a range of cash flow solutions, such as Stream Working Capital which allows access to cash tied up in unpaid invoices, Business Overdraft which helps manage fluctuations and unexpected expenses, as well as our Cashflow management tool in CommBank app.
"Our partnership with AGSM UNSW highlights CommBank's commitment to backing small business, and complements a range of products, services and tools to help Australian small business thrive," Ms Warren added.
The free Cash Flow Management course can be accessed at: navigator.agsm.edu.au/enrol/cba_cashflow_2024
About UNSW Sydney
UNSW Sydney is one of the world's leading research and teaching-intensive universities, known for innovative, pioneering research and high-quality education with a global impact.
Since our foundation in 1949, our aim has been to improve and transform lives through excellence in research, outstanding education, and a commitment to advancing a just society.
Our cutting-edge research impacts a wide range of areas including housing affordability, water technology, waste management, hydrogen energy storage and cancer research. Solar photovoltaic cells developed from UNSW research are embedded in almost 90 per cent of all solar panels in the world, playing a critical role in the global transition to renewable energy.
International and regional partnerships, first-class academics and state-of-the-art facilities mean UNSW students graduate with relevant, sought-after skills. We offer an extensive range of undergraduate, postgraduate and research programs that attract students from across Australia and around the world.
About the research
All figures, unless otherwise stated, are from YouGov. Total sample size was 507 adults. Fieldwork was undertaken between 31 October - 5 November 2024. The survey was carried out online. The figures have been weighted and are representative of Australian small and medium business owners and decision makers (aged 18+).
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