Skip to main content Skip to log on Skip to search Accessibility at CommBank

Brighter / Small business / A guide to managing small business finances

A guide to managing small business finances

What do you do when your business appears successful but you still feel broke? Here are three steps to take.

By Julie Lee

  • Knowing your incomings and outcomings is the first step to feeling financially secure.
  • Getting support from an accountant, and making use of tools and courses, can help you manage your cash flow.
  • Paying yourself regularly can go a long way in helping you feel less like you’re running on empty.

Business is booming—amazing sales, returning customers, happy employees—so why are you thinking about moving in with the in-laws? It’s a fairly common story: small-to medium-business (SMB) owners look like they’re riding high but they’re actually strapped for cash.

According to CommBank research, almost 80 per cent of SMBs experienced cash-flow challenges in the past 12 months1. “For small businesses, success often hinges on a delicate balancing act as they constantly juggle various aspects of their operations,” says Rebecca Warren, CommBank’s executive general manager of small business banking. “It’s not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMBs.”

And it’s not just your business that suffers when you have money problems. “Financial stress can cause significant physical and mental health problems,” says Australian Psychological Society president Sara Quinn. “These can include increased heart rate and blood pressure, difficulty sleeping, changes in appetite, headaches, fatigue, difficulty concentrating, irritability and feelings of hopelessness or helplessness.” The good news is there are strategies to help—try these expert tips to get started.

“A lot of customers feel like they’re doing well but every time they make money, they buy materials to put back into their business.” - CommBank business banking specialist, Mathew Buckland

Understand where the money is going 

The first step to feeling financially secure is knowing your incomings and outgoings. “A lot of customers feel like they’re doing well but every time they make money, they buy materials to put back into their business—they buy more opportunities to grow,” says CommBank business banking specialist Mathew Buckland. “They’re feeling growing pains as cash flow is strained.”

Cash flow can also be impacted by things like unexpected bills, tax debt or seasonal revenue. This is where forecasting helps. “If you’ve done your planning, you’ll know what the business will look like in six months or if there's going to be any seasonality,” says Buckland. “That will help you start preparing and putting money away for slow times.”

Learn how to manage your cash

You probably got into business as you love what you do, not because you want to manage money. That’s okay—there are people and products to help. “There’s a good cash-flow tool on the CommBank app and you can also get support from an accountant to draw up a cash-flow forecast,” says Buckland.

Pay yourself first (yes, really)

Up to 27 per cent of small business owners have dipped into their personal savings or didn’t pay themselves when money got tight over the past 12 months but that’s not a long-term strategy1. “You have to keep food on the table,” says Buckland, who suggests speaking to an accountant about how much you should pay yourself. “There’s a lot of different strategies people can put in place.”

How can you improve cash flow and take a salary? According to research, 85 per cent of SMBs have one or more strategies, such as reviewing expenses, keeping an emergency cash revenue and finding extra revenue streams1. Another option is a business overdraft, which can help with unexpected expenses. “It gives you a facility to keep growing and not at the expense of paying yourself,” says Buckland. “It helps the business carry itself.”

Try setting up a regular “payday” just like any other employee, even if it’s a modest amount to start with. That small habit can go a long way in helping you feel more secure and less like you’re running on empty.

A word on self-care

“Small business owners may feel a sense of purpose and identity associated with their business but it’s important not to tie your self-worth into how the business is doing,” says Quinn.

Rather than letting your mood rise and fall with the bottom line, try to focus on why your business matters to you. Then channel your energy into tasks that reflect those values and are within your control. And don’t hesitate to seek professional help if you need it. “Psychologists can provide support and guidance to manage stress levels, cope with anxiety and depression, build self-worth and develop healthy coping mechanisms,” adds Quinn. 

To learn about how CommBank backs small businesses, visit the CommBank small business hub.

Explore hub

Related articles


Published: 6 August 2025

Tags

Things you should know

1CommBank, ‘80 per cent of Aussie small businesses experience cash flow challenges’, January 16, 2025

An earlier version of this article was published in Brighter magazine.

This article provides general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as personal financial product advice. The views expressed by contributors are their own and don’t necessarily reflect the views of CBA. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider what is appropriate for your circumstances, and where appropriate, consider the relevant Target Market Determination, Product Disclosure Statement and Terms and Conditions available on our website. You should also consider whether seeking independent professional legal, tax and financial advice is necessary. Every effort has been taken to ensure the information was correct as at the time of printing but it may be subject to change. No part of the editorial contents may be reproduced or copied in any form without the prior permission and acknowledgement of CBA.