Cashflow Forecasting

Cashflow forecasting is critical for small businesses.

What is it?

Cash flow forecasting is a method of predicting cash inflows and outflows to see how much money you’ll have in the future. It provides a window into your business’s financial health and can help plan spending.

A cash flow forecast is in contrast to a cash flow statement. A statement focuses on past cash flows; a forecast predicts the future. It’s essential that you understand your cash flow cycle, which boils down to whether you’ve got more money coming in than going out. If you have more cash going out, you must address it quickly.

Staying on top of your business cash flow helps you pay bills on time and helps ensure you can pay yourself. When costs are rising (as per the current climate), it becomes even more imperative that businesses get their cash flow management right, and cash flow forecasting is one way to do it.

Benefits

The benefits include:

spotting cash shortages and giving you time to work on contingency plans, whether delaying spending, requesting extra credit from suppliers, or securing a business loan.
assessing the affordability of your growth plans – for example, they can show if there will be enough money to buy new tools or hire a new employee.
ensuring you have enough money to pay you, the business owner!
identifying quickly if expenses are climbing or income is slumping.
highlighting fixable cash flow problems such as slow-paying customers, impractical payment terms, seasonal cycles, or over-reliance on high-cost finance.

Key Components

The key components are –

starting position (cash in the bank).
expected cash in (hopefully mostly from sales but may also be from loans or sales of assets).
expected cash out.
net cash flow shows if cash reserves have grown or shrunk.
closing balance.

How often?

Businesses can do cash flow forecasting for any timeframe and duration. As you might imagine, it gets harder to accurately predict incomings and outgoings the further into the future you go. But whatever range you choose, it’s a good idea to keep refreshing your forecast.
If you run a 12-month forecast, for example, with a column for each month, you might refresh it at the end of each month. Drop the last month off, add another month to the future, and check all the forecasts in between to see if anything needs updating.

Ways to increase profitability

For most businesses, the easiest way to improve profits isn’t landing the next big client. Instead, it’s improving the little things, such as:

Increasing prices by a small margin, such as 5% or in line with CPI.
Collecting money owed to you faster.
Checking that you’re not paying too much for overheads like power, the Internet and office supplies. These can be small amounts, but they add up over time.
Look to renegotiate some of your earlier agreements.

Monitoring of cashflow and staying mindful of your ins and outs can bring positive changes to your business and gets you working on your business instead of in it. If you need any help establishing a process or need some accountability CoggerGurry can assist you with this process. Contact us now to get started on your cashflow forecasting journey.

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Working Out Your WFH Expenses This Tax Time

By Cogger Gurry • June 19, 2025

To be eligible to claim working from home (WFH) expenses, you need to be genuinely working from home to fulfil your employment duties, not just checking emails or taking occasional calls. You must also incur additional running expenses because of your WFH arrangement. These additional costs can typically include energy expenses for heating, cooling and lighting, home and mobile internet or data, phone expenses, and stationery or office supplies. When it comes to calculating your deductions, you can choose the “fixed rate method” or the “actual cost method”. For both methods, you’ll need records that accurately track your WFH hours. You can keep a diary or timesheets covering a representative four-week period showing your usual work pattern, or you can maintain a record of your entire year’s WFH hours. You’ll also need documentation showing you’ve incurred additional expenses, such as receipts and bills, and be able to demonstrate the proportion that relates to work. Fixed rate method: This approach simplifies your calculations by applying a set rate for each hour you work from home. For the 2024–2025 income year, this rate is 70 cents per hour. To calculate your deduction, simply multiply your total WFH hours by 70 cents. Remember, if you choose this method, you can’t claim additional separate deductions for expenses already covered under the fixed rate method, such as stationery supplies. Actual cost method: This approach requires you to keep detailed records of all additional costs incurred while working from home. You’ll need to track your WFH hours and maintain comprehensive records for all your WFH expenses. You can make separate claims for expenses not covered by either of the above methods, such as work-related technology and office furniture like chairs, desks, computers and bookshelves, as well as repairs or maintenance on these items. If you’re unsure whether an item you want to claim qualifies as an allowable work-related expense, check the ATO website for guidance or speak with your registered tax agent before including it in your return. If you would like to know more, you can visit Here

Minimum Wage Increase from 1 July 2025: What You Need to Know

By Cogger Gurry • June 19, 2025

Starting 1 July 2025, the Fair Work Commission has announced a 3.5% increase to both the National Minimum Wage and minimum award wages. Key Details: New National Minimum Wage: $24.95 per hour or $948 per week. Applies to: Employees not covered by an award or enterprise agreement. Effective Date: From the first full pay period on or after 1 July 2025. For employees covered by awards—which outline minimum pay rates and conditions for specific industries or occupations—the same 3.5% increase applies. This adjustment will also take effect from the first full pay period starting on or after 1 July 2025. What This Means: For Employees: You can expect a pay increase reflecting the 3.5% rise, depending on your current wage and coverage under an award or agreement. For Employers: Ensure that payroll systems are updated to accommodate the new wage rates from the applicable date. The Fair Work Ombudsman will update its Pay and Conditions Tool and other resources to reflect these changes. It's advisable to check these tools closer to 1 July to confirm the specific rates applicable to your situation. If you want to learn more about the minimum wage increase, contact us today. P- 03)5571 0111 or click Here

ATO Interest Charges

By Cogger Gurry • June 19, 2025

ATO interest charges incurred on or after 1 July Any GIC or SIC incurred on or after 1 July 2025 is not deductible. This includes all GIC and SIC in respect of outstanding or late payments of tax for income years both before and after 1 July 2025. As they are not deductible, any GIC or SIC that is later remitted will no longer need to be included as assessable income. ATO interest charges incurred before 1 July Any GIC or SIC incurred prior to 1 July 2025 is not impacted by the changes to the law and will continue to be deductible for the 2024-25 and earlier income years. If you have (or can) deduct GIC or SIC for the 2024-25 or an earlier income year and it is later remitted, the amount that is remitted will need to be included in your assessable income in the year in which the remission occurred. If you would like to know more, you can click Here , or you can contact our office if you have any questions or queries - 03) 5571 0111