In today's unpredictable business environment, cash flow management has become more critical than ever.   As a business owner, one of the most important strategies you can implement is a comprehensive "Cash Flow Strategy." This should include detailed budgets for all business activities and key drivers for essential accounts like debtors, creditors, capital expenditure, inventory, work in progress, and research and development. Your plan should also incorporate cash flow forecasts and projected balance sheets.  These financial documents need to be updated and monitored (minimum) monthly, allowing for adjustments as necessary to maintain realistic and up-to-date forecasts for your business.  Effective Cash Flow Management Involves Monitoring:  Financial performance  Debtors  Work in progress  Inventory  Capital expenditure.  Why Cash Flow is King  Cash flow is the lifeblood of your business. In the current economy, it’s essential to keep a close eye on your cash flow strategy. This means paying particular attention to your debtors, stock investments, work in progress and capital expenditure.   A critical metric to track is Debtor Days Outstanding  — the average time it takes to collect payments from customers — and Australia has one of the longest debtor collection periods in the world. Many business owners assume that invoices will be paid within 30 days, but this is often not the case, leading to significant cash flow difficulties.  3 Key Areas to Monitor  Debtor Management: Ensuring you have an effective system to manage and collect debts is crucial. Without it, you risk cash flow issues that could threaten the survival of your business. Don’t assume that all customers will pay on time.  Creditor Management: It's equally important to manage your payment terms with suppliers. New businesses may find that suppliers require cash in advance or on delivery, and assuming 30-day payment terms could create immediate cash flow issues.  Inventory and Capital Expenditure: Balancing the right level of inventory and planning capital expenditures carefully will prevent cash from being tied up unnecessarily.  Regular Monitoring is Essential  Cash flow management isn’t a once-a-year task. At a minimum, it should be reviewed monthly. By comparing your actual performance to your budget, you can quickly identify emerging problems that could impact your cash flow. Regular monitoring allows you to adjust your strategy and secure additional funding if needed, whether that’s through loans, raising capital or other financial resources.  By staying proactive and keeping a close eye on your cash flow, you can navigate uncertainty with confidence and keep your business on a solid financial footing.  Elevate your business to new heights. Contact Nathan McGrath  on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you tailor a cash flow strategy to suit your specific requirements.

Running a business today is filled with challenges that go beyond tax deadlines. While accountants and bookkeepers are essential allies, business leaders need to be supported all year — not just during year-end tax meetings.   Financial strategy, cash flow and budgeting are key to staying resilient and thriving in today’s competitive landscape. Here’s why continuous support from specialists can make all the difference.  Year-Round Accounting Support is Crucial  Many business leaders wait until the end of the financial year to engage their accountants, primarily to determine their tax liability. However, waiting until then limits the opportunity for proactive planning. Business leaders need actionable insights throughout the year to navigate ongoing financial demands and strategic planning. Let’s delve into the top challenges businesses face and how continuous support can address them.  Key Challenges and How Collins Hume Can Help  1. Managing Debtors  Effective debtor management is essential for cash flow. Businesses benefit from guidance on setting up robust debtor systems that align with their revenue cycles and business needs.  2. Understanding Supplier Terms  Before launching a business, it’s wise to negotiate and understand supplier terms. While some suppliers offer credit terms, others may demand cash on delivery, which can strain cash flow. Accountants can assist in understanding these terms and incorporating them into the business’s financial strategy.  3. Preparing for Tax Payments  It’s not uncommon for some businesses to take a cursory view of their tax obligations, often finding themselves caught off guard by tax liabilities they haven't budgeted for. Planning for these payments through regular cash flow forecasts can help avoid financial stress.  4. Building Budgets and Cash Flow Forecasts  A strong financial plan includes budgets and cash flow forecasts — essentially the “Financial Interpretation of the Business Plan.” These tools can predict potential financial bottlenecks, enabling businesses to take pre-emptive action.  Utilising a Year-Round Business Enhancement System to Optimise Management  For ongoing success, business leaders need a reliable framework that keeps financial insights at their fingertips. Here’s a quick breakdown of how to incorporate a structured reporting system:  Regular Reports  A one-page snapshot of sales, outstanding debtors, upcoming payables, cash on hand and gross profit percentage helps businesses stay on top of their daily financial health. This visibility aids in making quick adjustments and staying agile.  Performance Metrics  A weekly report showcasing Key Performance Indicators (KPIs) and profitability metrics for each business segment can highlight emerging issues. Addressing these weekly prevents minor issues from snowballing into major problems.  Financial Analysis  Monthly reports provide a comprehensive overview, including KPIs, business metrics and budget comparisons. These summaries enable a deeper understanding of the business’s financial standing and highlight areas for improvement before the year-end.  The Bottom Line  By adopting a year-round approach to accounting and financial management, build resilience and stay prepared for whatever comes your way. Collins Hume are more than tax accountants — we’re strategic partners who help businesses forecast cash flow, navigate supplier terms and even have a specialist team of bookkeepers to manage debtor accounts. For business owners and managers, embracing continuous financial support isn’t just beneficial, it’s essential for long-term success.  Collins Hume can help you take the first step toward a stronger, more resilient business with Strategy360. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how we can help you achieve a better performing business and lifestyle.

‘Payday super’ will overhaul the way in which superannuation guarantee is administered. We look at the first details and the impending obligations on employers.  From 1 July 2026, employers will be obligated to pay superannuation guarantee (SG) on behalf of their employees on the same day as salary and wages instead of the current quarterly payment sequence.  The rationale is that speeding up the payment sequence for SG will not only help reduce the estimated $3.4 billion gap between what is owed to employees and what has been paid, but will also improve outcomes for employees – the Government estimates that a 25‑year‑old median income earner currently receiving super quarterly and wages fortnightly could be around 1.5% better off at retirement.  Announced in the 2023-24 Federal Budget, payday super is not yet law. However, given the structural changes required to administer the new law, Treasury has released a fact sheet to help employers better understand the implications of the impending change.  How will payday super work?  Under payday super, the due date for SG payments will be seven days from when an ordinary times earning* payment is made. That is, employers have seven days from an employee’s payday for their SG to be received by their super fund. The only exceptions are for new employees whose due date will be after their first two weeks of employment, and for small and irregular payments that occur outside the employee’s ordinary pay cycle.  Over the last few years, employers have moved to single touch payroll (STP) reporting for employee salary and wages. It is expected that payday super will fold into the existing electronic systems and some changes will be made to STP to collect ordinary times earning data.  The impact for some employers however will not be the compliance cost of administering the regular SG payments, but the cashflow. Employers will not be holding what will be 12% of their payroll until 28 days after the end of the quarter, but instead paying this amount out on the employee’s payday. The upside is that where an employer has either fallen behind or not paying SG, particularly when the business is insolvent, the damage is contained.   What happens if SG is paid late?  The penalties for underpaying or not paying SG are deliberately punitive and this approach will continue under payday super.  Currently, a super guarantee charge (SGC) applies to late SG payments - comprised of the employee’s superannuation guarantee shortfall amount, interest of 10% per annum from the start of the quarter the SG payment was due, and an administration fee of $20 for each employee with a shortfall per quarter. And, unlike normal superannuation guarantee contributions, SGC amounts are not deductible to the employer, even when the liability has been satisfied.  Under payday super, employees are fully compensated for delays in receiving SG amounts and larger penalties apply for employers that repeatedly fail to comply with their obligations. If you make a payment late, the SGC is made up of:  Outstanding SG shortfall   Calculated based on OTE, rather than total salaries and wages as it is currently.  Notional earnings   Daily interest on the shortfall amount from the day after the due date, calculated at the general interest charge rate on a compounding basis.  Administrative uplift   An additional charge levied to reflect the cost of enforcement and calculated as an uplift of the SG shortfall component of up to 60%, subject to reduction where employers voluntarily disclose their failure to comply.  General interest charge  Interest will accrue on any outstanding SG shortfall and notional earnings amounts, as well as any outstanding administrative uplift penalty.  SG charge penalty   Additional penalties of up to 50% of the outstanding unpaid SG charge, that apply where amounts are not paid in full within 28 days of the notice of assessment.  As you can see, if the proposed SGC becomes law, late SG payments can spiral out of control quickly. This will be a particular issue for employers that pay employees less than their entitlements over time, or have misclassified employees as contractors and have an outstanding SG obligation.  But, unlike the current SGC, the new SGC will be tax deductible (excluding penalties and interest that accrue if the SG charge amount is not paid within 28 days).  Payday super is not yet law. We will keep you up to date as change occurs and work with you to get it right once the details have been confirmed.   *Ordinary time earnings are the gross amount your employees earn for their ordinary hours of work including over-award payments, commissions, shift loading, annual leave loading and some allowances and bonuses.

AWARDS. At Collins Hume, we constantly strive for excellence. Therefore, it is humbling that our industry and other organisations have recognised our excellence in service and knowledge.

TEAM. Christopher Atkinson Partner & CEO B Bus, FCPA chris.atkinson@collinshume.com.au "People in small to medium business are the backbone of the community" Kelly Crethar Partner B Bus (Acc & Bus Law), CPA kelly.crethar@collinshume.com.au "You'll never know what's possible until you try" Jamie Doyle Partner B Bus (Acc), CPA jamie.doyle@collinshume.com.au "To provide my clients with the knowledge, solutions and tools they need to succeed" Peter Fowler Partner MBA, FCPA, B Acc, SSA, JP, SA Fin peter.fowler@collinshume.com.au "We work to live, we don't live to work" Nathan McGrath Senior Business Adviser MBA, Dip Financial Planning, Foundations of Directorship (AICD) nathan.mcgrath@collinshume.com.au "Don't wait for tomorrow; now is the time to start working on your business” Naomi Monk Practice Manager Cert Bookkeeping naomi.monk@collinshume.com.au "Be generous, true and fierce!" Kristy Dooley Senior Accountant B Com, B Laws, Dip Financial Planning, CA kristy.dooley@collinshume.com.au "You do you" Chris Horne Senior Accountant B Bus (Accounting), Grad Dip Super (UNSW), CA chris.horne@collinshume.com.au "Porteus fidelis" Marisa Worling Senior Accountant B Bus (Accounting) Xero Certified Adviser, CPA marisa.worling@collinshume.com.au "Don't sweat the small stuff" Shannon McDonald Senior Accountant B Bus (Accounting & Finance), Xero Certified Advisor, Xero Migration & Xero Payroll Champion, CPA shannon.mcdonald@collinshume.com.au "There are three ways to ultimate success: The first way is to be kind. The second way is to be kind. The third way is to be kind." Riley Gollan Accountant B Bus (Acc & Fin), Dip Sport Development riley.gollan@collinshume.com.au "It's supposed to be hard. If it were easy, everyone would do it" Annalisa Hill Accountant B Bus (Accounting) annalisa.hill@collinshume.com.au "Stay away from those people who try to disparage your ambitions. Small minds will always do that, but great minds will give you a feeling that you can become great too." Kim Roy Accountant B Bus (Coms) kim.roy@collinshume.com.au "Try seeing the world from other people's perspective not just your own" Jonathan Walsh Accountant BA (Business) MA (Accounting) ASA jonathan.walsh@collinshume.com.au Brodie Cook Accountant CA brodie.cook@collinshume.com.au "When you can’t find the sunshine, be the sunshine" Kaleb Morhaus Undergraduate Accountant Xero Certified Advisor kaleb.morhaus@collinshume.com.au "You'll never walk alone" Nerida Byron Bookkeeper Cert IV Accounting & Bookkeeping, Xero Certified Advisor, Xero Payroll Certified nerida.byron@collinshume.com.au "If you stop learning, you just stop, so learning is magic" June Henry Bookkeeper Cert IV Bookkeeping (Distinction), Certified Xero Bookkeeper, Xero Payroll Champion, MYOB Partner, Registered BAS Agent june.henry@collinshume.com.au "It's just gotta be fun!" Carol Holton Business Host Cert IV in Frontline Management carol.holton@collinshume.com.au "Life's too short to sweat the small stuff; things always have a way of working themselves out" Lucy Flanagan Executive Assistant Cert III (TAFE Award Recipient) & Cert IV Business Admin, JP lucy.flanagan@collinshume.com.au "If everything is too precious or perfect, you lose that little bit of spark" Kylie Griffith Executive Assistant JP kylie.griffith@collinshume.com.au "Life is a journey not a destination" Tamara Hepburn Executive Assistant Dip Accounting, Dip Hosp & Events Management, Cert III IT tamara.hepburn@collinshume.com.au "Vulnerability isn’t a weakness. It’s the ability to show up even when you can’t control the outcome." Lani Winston Executive Assistant Cert III Business Admin lani.winston@collinshume.com.au "The more you know, the less you don’t" Kirra Connell Administration Trainee Studying Business Cert lll kirra.connell@collinshume.com.au "Nothing will work unless you do" Join our team — we make accounting fun! We're an award-winning team of family-friendly accountants and business advisers passionate about quality work and exceptional service. We also give back to our community. We're an inspiring and caring bunch. Our workplace is about lifestyle, fun, enjoyment, and leaving a legacy of a better world. Our business is also a bit different. We are members of 1% for the Planet, and our Climate Neutral Certification supports this. We always seek talented professionals who align with our values and vision. If you're interested, don't hesitate to contact us and join our team.

Discover the Power of 360° Business Solutions At Collins Hume, our "360" approach means comprehensive, all-encompassing solutions tailored to your needs. Because everyone’s journey is different, we take a holistic approach to helping You. Whether optimising finances, growing your business or securing your legacy, we provide a full-circle strategy that puts you at the centre. Let’s navigate your success together. Strategy360° Business owners often face challenges like unpredictable growth, financial inefficiencies and navigating complex market environments. Strategy360 by Collins Hume simplifies these complexities by providing tailored strategic advisory services designed to improve profit, boost cash flow and enhance your business’s long-term value. Through expert guidance in financial management, business restructuring and succession planning, we help you overcome operational hurdles and maximise opportunities. Our proactive approach ensures we address common frustrations, such as poor cash flow management or inadequate risk mitigation, transforming them into strategic advantages. By partnering with Strategy360, you’ll gain clarity and control over your operations, improve profitability, increase business value, and secure a sustainable future for your business. Elevate your business to new heights. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you tailor a program to suit your requirements. Learn more Wealth360° Do you ever wonder if you're on the right path to creating wealth and securing your financial future? Is your superannuation working as hard as it could be? Are you paying too much tax, or could your investments be better structured? What about leaving a legacy—will your family be hit with significant taxes or risk losing it due to failed business operations, bankruptcy or divorce? At Collins Hume, we bring the experience and expertise to guide you through these important decisions. Working closely with a trusted network of financial planners, lawyers, finance brokers, and retirement specialists, we tailor personalised solutions to maximise wealth, protect assets, and pass them on to future generations. With our proactive, holistic approach, you’ll have peace of mind knowing your financial affairs are in order—so you can enjoy a comfortable retirement. Partner with Collins Hume today to safeguard your future, minimise tax, and secure financial stability. Tax360° At Collins Hume, we provide strategic tax solutions that minimise your tax, create wealth, and protect your assets. We go beyond the usual ATO compliance lodgements and work with YOU to educate and empower you to make smarter, more informed financial and tax decisions. By focusing on business and investment structuring, tax minimisation, and long-term wealth creation, we help you optimise your tax position and meet ATO deadlines so you can focus on yourself and your business. Whether you're an investor or a business owner, we partner with you to minimise tax, safeguard your family’s assets, and achieve your financial goals. Let us guide you through the complexities of the tax system to build a secure, successful future. Books360° Managing the books can be overwhelming and time-consuming for business owners. And let’s face it, your time and expertise are better focused on other parts of your business. Books360 by Collins Hume takes the stress out of managing your ATO obligations. Whether you need BAS lodgement, payroll, or one-off bookkeeping expertise, our specialist team ensures accuracy and compliance, allowing you to focus on growing your business. Work with us today to streamline your bookkeeping and ensure you keep up with the ATO’s relentless deadlines. We help simplify your operations and provide real-time financial insights. Being efficient and adopting technology saves you time, reduces costly errors, and improves cash flow, directly benefiting your bottom line. With the expertise of our experienced bookkeepers, including Certified Xero Professionals, you’ll have peace of mind knowing your books are in order. Let Books360 by Collins Hume keep your business running smoothly.