Financial business consideration 2025

There is little doubt that small—to medium-sized business owners feel uneasy and hesitant regarding the current business climate. I speak to many business owners daily, and the theme is consistent. While the continued rhetoric on US tariffs, fluctuating sharemarket activity, and China’s position erodes business confidence, it is understandable that this uncertainty compromises decision-making. Throw the upcoming federal election into the mix, and the pot is getting harder to stir.

My advice is clear. Stay calm, review your business plan, and keep your business moving forward.

In this article, I aim to give SMEs practical advice on remaining resilient and staying focused on the future.

If your business is tied to supply chains and or exports it is wise to broaden your reach. Exploring alternative sourcing options can be advantageous. Local suppliers within Australia, South East Asia, and India are attractive. Local suppliers offer direct access, reduced timelines and competitive pricing. At the same time, South East Asia and India are experienced in dealing with global customers and face similar challenges, which can enhance relationship building.

Secondly exploring new export opportunities is strongly advised. Many businesses have been doing this for some time with success. Look for opportunities with free trade agreements like Australia-UK, Singapore and New Zealand. The Department of Forigen Affairs and Trade (DFAT) website is an ideal resource tool for information gathering. DFAT can also assist with market entry.

Looking at global instability as an opportunity is why diversification is an ongoing business strategy.

As business owners, we plan optimistically to ensure sufficient capacity to meet demand. This is not a bad thing, and motivation is kept high. With the uncertainty in federal policy, interest rates, and business incentives, now is the time to create a mixed planning strategy.

With professional guidance from your business accountant and advisor, develop a strategy for:

The best outcome: Look at growth with stable interest rates and an insulated client base.
Average outcome: Look at a stagnant period of growth and factor in small COB increases.

Worst outcome: Plan for a policy delay that affects your business placement, economic cooling, and tariff decisions that may influence your current customers or suppliers. Planning for worst-case scenarios is never a joy, but it will help you understand and be prepared for negative impacts.

Planning for and layering these outcomes into your cash flow forecast allows your business to react progressively or take a protective position when things change. We have learned that the US administration makes decisions quickly; however, implementing these decisions comes with a period of reflection.

Keeping with the theme of diversification, businesses that think local, buy local, and sell local increase their ability to insulate themselves against extreme global movements. By strengthening relationships with domestic suppliers and customers through loyalty programs and participating in regional B2B activities, businesses may open opportunities that reduce logistical challenges and continue to advance sales and growth.

Furthermore, if you have considered digital investment, now is a great time to make the leap.

Automating inventory management or cloud accounting software installation and training can be advantageous. Federal incentives and digital adoption grants are available. Be sure to speak with your business accountant or advisor first to ensure it is the right strategy for your circumstances.

Many SMEs often overlook risk management. Part of the review is your insurance coverage. Insurers make changes, and you may be at risk without regularly reviewing your policy. The obvious ones are fire, theft, flood, physical damage, etc. However, reviewing your cyber and business interruption terms and conditions and costs should be part of your risk management strategy.

Be aware to update your payment terms, legal protections, and ongoing contracts. Communication with suppliers and customers is essential; keeping relationships transparent with updated information saves issues.

Always stay compliant. Non-compliance can damage a reputation and result in fines, which is bad for business.

Stay informed about ATO and Government updates. Government programs, such as Austrade, are sometimes an underutilised resource. Look for grants or tax offsets that target innovation, sustainability, or workforce development. Check in with ATO. They will publish any announcements or updates that affect SMEs throughout the year. Your business accountant or advisor can assist.

When the business climate is unclear, SMEs experience the ups and downs with greater intensity. The danger is reacting too aggressively or too passively without a considered and prepared plan. Now is the time to speak with your business accountant or advisor. At North Advisory, we believe that preparation over prediction is the most effective business strategy, particularly in uncertain times.

If you require assistance or professional advice, contact us today. We have the experience and expertise to help build business resilience and chart a sustainable path forward.

North Advisory, located on Sydney’s Northern Beaches, is ideally positioned to assist you with expert financial management, taxation planning, and implementing financial strategies.

Marius Fourie, Director and Accountant, is a leading business accountant and advisor who has helped many Australian businesses maximise their financial position.

Contact Marius today and secure your financial future.