According to Xero Economist Louise Southall, small businesses in Australia face an average payment delay of 6.6 days.
“This delay can significantly impact broader business operations and hinder long-term growth investments,” Southall noted.
She also highlighted that additional pressures, such as regular superannuation obligations, can exacerbate these cash flow challenges, potentially escalating them into a crisis.
“Now more than ever, it’s crucial for business owners to concentrate on what they can control and filter out distractions,” Southall advised.
“The unpredictability of business environments poses the greatest challenge to small business owners,” she explained.
“Those who are prepared to handle unforeseen changes will likely thrive over the next 12 months,” Southall concluded.
Both Foley and Gescheit have called on better government support and education for small businesses in Australia, particularly when new compliance laws arise.
“It would just be helpful to have a bit more education around it,” Gescheit added.
“I actually feel like I haven’t received anything or seen anything that helps educate the small business or the employer on how to tackle this.”
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