Starting the year feeling behind on your business finances? You’re not alone.

Small Business AccountingBusiness Finance TipsBudgeting and PlanningOwner Salary and Payroll
Written By Kim Clinton

If you’re a small business owner or tradie, the start of the year can feel overwhelming. After the Christmas break, cash flow is often tight, kids are still at home, and suddenly you’re back at work with no clear plan — just a growing sense that you’re already behind.

This is one of the most common conversations I have with business owners in January. And the good news? You don’t need to fix everything at once.

Let’s focus on a few simple, practical steps that can help you regain control.

Here are three things you can do now to set your business finances up for the year ahead.

1. Review your owner salary

The new year is the ideal time to review your personal or family budget. This is the starting point for understanding the minimum salary you need to pay yourself as a business owner.

Household costs increase every year — childcare, kids’ activities, groceries, insurance, subscriptions. I reviewed my own budget last week and noticed Netflix had gone up by $10 a month!

Set aside time to list your family expenses and check whether your current wage actually covers them. This doesn’t need to be complicated — a simple spreadsheet or budgeting app is more than enough.

If you’d like help, we can provide an easy-to-use Excel budget template - just reach out here.

2. Create a business budget (and reduce cash flow stress)

Many small businesses experience cash flow pressure early in the year. One of the best ways to reduce that stress is by preparing a business budget.

Without a budget, you’re relying on guesswork. With one, you know exactly:

  • how much income your business needs each month

  • when cash flow shortfalls may occur

  • and what decisions you need to make in advance

A business budget estimates your monthly income and expenses so you’re not reacting under pressure. Xero has a built-in budgeting function that works well for most small businesses and tradies.

3. Take action on your numbers

Once you understand your numbers, it’s important to act:

  • Review pricing and charge-out rates

  • Look for business expenses that can be reduced

  • Make sure you’re paying yourself fairly and consistently

Being busy but not paying yourself properly is not sustainable — and it often leads to burnout. Small adjustments can make a big difference to both cash flow and confidence.

Important housekeeping checks

A few quick but important reminders:

  • Set aside weekly time to keep your Xero file up to date (a budget only works if your data is current)

  • December quarter BAS is due next month — do you have the funds set aside?

  • Bookkeeping clients: send receipts to Hubdoc as you go and build good habits early

You’re not bad with money — you’re just busy

Most business owners I work with aren’t struggling because they’re bad with money. They’re busy running their business and looking after everyone else.

Understanding your business numbers and staying organised can be incredibly empowering. It gives you clarity, control, and confidence in your decisions.

If you’d like support, this is exactly what we’re here for. As part of our Growth Package, we’re completing Business Health Checks in February, including reviewing owner salary and key business numbers.

If you’re currently on our Essentials package and are considering upgrading to Growth, it’s not too late. The Growth package introduces key advisory support, including ATO budgeting, proactive tax planning, and a full business health check — ideal if you want to minimise tax, better understand your numbers, and feel confident heading into the end of financial year. You can explore the differences here.

Let’s make this year feel more in control — and far less stressful. If you’d like help reviewing your numbers or figuring out your next steps, get in touch with our team. We’re always happy to have a conversation.

Kim Clinton