Your Business Finance Questions Answered

Real answers from someone who's helped dozens of Australian businesses navigate their financial challenges. No jargon, no fluff — just practical guidance you can actually use.

Meet Zara Chen, Your Finance Guide

After working with over 80 small businesses across Queensland since 2019, I've heard pretty much every finance question you can imagine. From "How do I read a cash flow statement?" to "Should I get a business loan or find investors?"

What I've learned is that most business owners aren't looking for complex financial theories. They want straight answers about real situations they're facing right now. That's exactly what you'll find here — practical responses based on what actually works for Australian businesses.

80+ Businesses Guided
Zara Chen, business finance consultant
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Cash Flow Basics

Understanding your money flow, managing seasonal ups and downs, and keeping your business financially healthy week to week.

12 Questions

Financial Reports

Making sense of profit and loss statements, balance sheets, and the numbers that actually matter for your business decisions.

8 Questions

Funding & Loans

When to borrow, how much to ask for, and what lenders actually look for when reviewing Australian small business applications.

15 Questions

Tax & Compliance

GST, BAS statements, deductions you might miss, and staying on the ATO's good side without hiring an expensive accountant immediately.

10 Questions

Most Asked Questions

These are the questions that come up in almost every conversation I have with new business owners. Click any question to see the full answer.

Most businesses should aim for 3-6 months of operating expenses in cash reserves, but this varies significantly based on your industry and cash flow patterns.

For seasonal businesses like tourism or retail, I typically recommend 6-9 months of expenses because your quiet periods can be longer and less predictable.

Start by calculating your monthly fixed costs — rent, salaries, insurance, loan payments. Then add your average variable costs. If that total is ,000 per month, aim for ,000-90,000 in reserve depending on your business type.

Consider a business loan when you have a specific growth opportunity that will generate more income than the loan costs, or when you need to smooth out cash flow gaps that are temporary.

Good reasons: buying equipment that increases capacity, expanding to a proven market, or bridging seasonal cash flow. Poor reasons: covering ongoing losses or funding unproven business ideas.

Before applying, ensure your business can service the debt during slower periods. Banks want to see 18-24 months of positive cash flow history.

Profit is the difference between your income and expenses on paper. Cash flow is the actual money moving in and out of your bank account, which often doesn't match your profit.

You might show a ,000 profit for the month but have negative cash flow because customers haven't paid their invoices yet, or because you bought inventory that hasn't sold.

Cash flow keeps your business running day-to-day. Profit shows long-term viability. You need both, but cash flow problems will kill your business faster than profit problems.

Check your cash position weekly, review your profit and loss monthly, and do a comprehensive financial review quarterly. During busy periods or growth phases, increase the frequency.

Weekly cash flow reviews help you spot problems early. Monthly P&L reviews help you understand trends and make pricing adjustments. Quarterly reviews are for bigger strategic decisions.

Many business owners only look at their finances when doing tax returns. That's like only checking your car's oil when the engine seizes — too late to prevent problems.

You can deduct expenses that are directly related to earning your business income. This includes rent, utilities, equipment, supplies, professional services, and marketing costs.

Common deductions people miss: home office expenses if you work from home, vehicle expenses for business use, professional development, and business insurance premiums.

Keep detailed records and receipts. The ATO's main test is whether the expense helps you generate business income. When in doubt, consult with a qualified accountant.

Still have questions about your specific situation? Every business is different, and sometimes you need personalized guidance.

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