The beginning of the new financial year in Australia, starting July 1, 2025, is more than just a date on the calendar—it’s a strategic milestone for business owners. Whether you’re running a small local service or scaling a national e-commerce brand, having a clear, actionable financial plan is crucial for making smarter decisions, weathering uncertainties, and growing sustainably.
Too often, small businesses operate on instinct or gut feeling, only to find themselves unprepared for cash shortages, tax surprises, or missed growth opportunities. But with a well-thought-out financial plan, you gain clarity, control, and confidence. This guide walks you through the essential steps to build a financial plan that’s tailored for your 2025–26 business journey. Let’s dig in.
Step 1: Revisit Your Business Vision and Long-Term Goals
Before diving into numbers and spreadsheets, take a step back. What is the core vision of your business? Where do you want it to be in 1 year, 3 years, or 5 years? Financial planning isn’t just about crunching numbers—it’s about aligning your finances with your broader business goals.
Ask yourself:
- Are you aiming to expand to new locations?
- Planning to invest in new equipment or tech?
- Wanting to increase your market share or launch new products?
- Hoping to build a more stable income stream and reduce debt?
Write down these goals in concrete, measurable terms. Then, assign realistic timelines and potential financial impact to each. This forms the foundation for your financial decisions—your cash allocation, investments, pricing, and hiring will all tie back to these objectives.
Remember, clarity of vision leads to smarter execution. Don’t skip this foundational step.
Step 2: Conduct a Full Financial Health Check
Think of this as your business’s annual check-up. Review the key financial documents from the past 12 months—your income statement, balance sheet, and cash flow statement. These aren’t just accounting formalities; they tell the story of your business’s performance.
Here’s what to look for:
- Profitability: Was your net profit margin healthy? Are there areas where margins are shrinking?
- Liquidity: Do you have enough current assets to cover short-term liabilities?
- Cash Flow: Were there periods where you struggled to pay suppliers or wages?
- Debts: What’s your current debt load, and how manageable is it with your income?
Highlight strengths you can build on and weaknesses that need addressing. Maybe you’re generating strong sales but bleeding cash due to late receivables or overspending. Or perhaps you have steady cash flow but haven’t optimised your margins.
This financial reflection sets the stage for your 2025–26 goals. It also alerts you to areas where you’ll need to make strategic changes.
Step 3: Forecast Your Revenue and Expenses
Forecasting might sound intimidating, but it’s really just educated guessing based on past trends and future plans. Start by estimating your expected revenue month by month. Break it down by product or service line, if applicable.
Use:
- Previous years’ revenue as a baseline
- Seasonal trends (e.g., higher retail sales during Christmas)
- New client contracts or marketing campaigns launching soon
- Pricing adjustments or product changes
Next, do the same for expenses. Separate fixed costs (rent, wages, insurance) from variable ones (inventory, commissions, travel). Factor in any anticipated increases, such as rising supplier prices or plans to hire.
Tip: Don’t forget one-off expenses—equipment upgrades, website redesigns, or training programs. These can derail a plan if not accounted for early.
The result is a month-by-month financial picture for 2025–26. It won’t be 100% accurate, but it will help you plan proactively, not reactively.
Step 4: Build a Cash Flow Projection
Cash flow is the heartbeat of your business. Even profitable businesses fail when they can’t manage cash effectively. Your financial plan must include a detailed cash flow forecast—tracking when money enters and leaves your business.
Here’s how:
- Start with your opening bank balance for July 2025.
- Add expected cash inflows (sales, loan drawdowns, tax refunds).
- Subtract projected outflows (rent, payroll, loan repayments, BAS).
Do this monthly or even weekly if your cash flow is tight. Use a spreadsheet or accounting software like Xero, QuickBooks, or MYOB to automate the process.
Why this matters: You might invoice $50,000 in July, but if your clients don’t pay until September, you could be short on funds to pay suppliers in August. A cash flow forecast helps you prepare for these gaps—whether that’s arranging an overdraft, adjusting payment terms, or timing expenses better.
Step 5: Plan for Taxes and Superannuation
This is one area many business owners overlook—until it bites back hard. From GST to PAYG withholding, company tax to superannuation, every dollar owed to the ATO needs to be budgeted for in advance.
Here’s what to include:
- Quarterly BAS: Estimate your GST and PAYG obligations and set that money aside.
- Income Tax: Based on your profit forecast, calculate your likely income tax liability. Consider if you’ll need to pay instalments (PAYG Instalments).
- Super Contributions: Budget for the Super Guarantee (currently 12% for employees from July 1, 2025) and any voluntary contributions if you’re self-employed.
Open a separate tax savings account and move a portion of revenue into it regularly. It might feel painful, but it saves you from scrambling during tax season or getting hit with penalties.
Step 6: Review and Update Pricing Strategies
Pricing isn’t set-and-forget. It’s one of the most powerful tools to impact your bottom line, yet many business owners haven’t adjusted their prices in years. In 2025-26, inflation, supply chain pressures, and changing customer behaviours all make it critical to reassess your pricing.
Here’s what to do:
- Benchmark against competitors: Are you undercharging compared to similar businesses? Or are you at a premium that’s not backed by additional value?
- Calculate your cost base: Have supplier costs, shipping, labour, or overheads increased? If so, your prices should reflect that.
- Assess your value proposition: Are you offering more than before—better service, quicker delivery, enhanced features? Price accordingly.
Even a 5-10% increase in pricing, if communicated correctly, can significantly boost profitability without hurting customer loyalty. Consider bundling services, offering value-based pricing, or providing subscription models to encourage recurring revenue.
Your financial plan should reflect any anticipated price changes and model how they impact your revenue and profit targets.
Step 7: Identify Investment and Growth Opportunities
A strong financial plan isn’t just about cutting costs—it’s also about planning for expansion and innovation. What can you invest in this year that could lead to stronger revenue or efficiency in the future?
Potential areas for investment:
- Technology: CRM systems, e-commerce upgrades, automation tools
- Marketing: Paid campaigns, SEO, branding, influencer partnerships
- Talent: Hiring staff to free up your time or scale delivery
- New Products or Services: Based on customer feedback or industry trends
Use your financial plan to model different investment scenarios. For example, what happens to your cash flow if you spend $10,000 on a rebrand or new hire? What ROI do you expect?
Every growth plan involves risk, but the key is planning. Forecast the potential upside, build in a buffer, and ensure your cash position supports your ambition.
Step 8: Create a Budget for 2025-26
A budget is the practical side of your financial plan—it’s where strategy meets execution. Based on your forecasts and goals, build a detailed budget broken down monthly and by category.
Key elements:
- Revenue targets by product/service or location
- Fixed costs like rent, wages, insurance
- Variable costs like marketing, inventory, subcontractors
- Discretionary spending for training, events, travel
- Planned investments or upgrades
- Loan repayments and tax reserves
Use accounting software to track budget vs actuals monthly. This allows you to course-correct if revenue dips or expenses spike unexpectedly. Your budget should be a living document—review it quarterly and adjust based on performance.
A solid budget not only guides spending but gives you the confidence to take calculated risks when the time is right.
Step 9: Monitor Your KPIs and Performance Metrics
Numbers are only useful if you measure and act on them. Your financial plan should include a clear set of Key Performance Indicators (KPIs) that you’ll track throughout the year.
Common KPIs include:
- Gross profit margin
- Net profit margin
- Customer acquisition cost
- Revenue per employee
- Inventory turnover
- Accounts receivable days
- Operating cash flow
Choose KPIs that align with your goals. If growth is the focus, track sales conversion rates and marketing ROI. If efficiency is the priority, monitor labour costs or workflow cycle time.
Set monthly or quarterly targets, and use a dashboard (or just a spreadsheet) to visualise progress. If something’s off track, investigate and adjust early. Waiting until year-end is too late.
Step 10: Build in a Contingency Plan
No matter how good your financial planning is, curveballs happen—economic shifts, supply chain breakdowns, new competition, or personal emergencies. That’s why every solid plan includes a contingency fund and risk strategy.
Start by identifying potential risks:
- What if your biggest client leaves?
- What if interest rates rise again?
- What if staff turnover increases?
Then, model worst-case scenarios. How would these impact cash flow, and what steps could you take? Could you delay investments, cut costs, or tap into reserves?
Aim to have a minimum of 3 months’ worth of operating expenses in a separate emergency fund. This buffer gives you time to adapt without panic.
Also, revisit your business insurance. Is it up to date and adequate for new equipment, locations, or team members? Consider business interruption cover, cyber insurance, and professional indemnity based on your industry.
Planning for the worst helps ensure the best isn’t derailed.
Step 11: Use Financial Tools and Technology
Manual spreadsheets have their place, but in today’s fast-moving world, digital tools can dramatically improve accuracy, save time, and offer deeper insights into your financial planning.
Start with cloud-based accounting software (LT has experts to help) like:
- Xero: Ideal for small to medium Australian businesses, integrates with BAS, payroll, and cash flow forecasting.
- QuickBooks Online: Great for multi-user environments and real-time financial dashboards.
- MYOB: Tailored for Australian tax and compliance requirements, with strong reporting features.
Then add budgeting, forecasting, and KPI tracking tools like:
- Fathom or Float: Visual cash flow forecasting.
- LivePlan: Strategic business planning and pitch development.
- Trello/Asana: For task and milestone tracking alongside your financial goals.
Use bank feeds, automated invoicing, and payment integrations to reduce human error and save time. The goal is real-time financial clarity, not a month-late report.
Also consider apps for expense tracking (like Expensify), receipt scanning (like Hubdoc), and inventory management if you sell products. With the right tech stack, you’re no longer reacting—you’re steering the ship.
Step 12: Consult with your LT Business Accountant or Financial Advisor
Even the most hands-on business owner needs outside perspective. Using one of Leenane Templeton’s Chartered Accountants, tax advisors or financial advisor can offer valuable insights, identify blind spots, and ensure your plan complies with current regulations.
Here’s what we can help with:
- Structuring your business for tax efficiency
- Forecasting complex cash flow and tax obligations
- Reviewing your plan for missed deductions or risks
- Setting realistic targets based on industry benchmarks
- Planning for succession, exit, or capital raising
Schedule an annual or semi-annual financial planning session. Come prepared with your goals, forecasts, and current numbers. We don’t just crunch numbers— we help you strategise and grow.
The small investment in advice can lead to thousands in savings or extra revenue. Don’t treat it as a cost—see it as part of your business toolset.
Conclusion
Creating a financial plan for the 2025–26 financial year isn’t just a best practice—it’s a necessity in today’s economic climate. With rising costs, tightening regulations, and ever-evolving markets, flying blind is no longer an option for Australian business owners.
By taking the time now to revisit your goals, forecast your cash flow, review your pricing, and prepare for contingencies, you’re not just planning—you’re leading. Your financial plan is your business blueprint for the next 12 months, guiding every dollar, decision, and direction.
The best part? You don’t need to be a finance expert to take control—you just need clarity, consistency, and the right tools. Start today, and by next June, you’ll not only survive—you’ll thrive.
LT’s FAQs
How often should I review my financial plan?
Ideally, you should review your financial plan quarterly. At the very least, revisit it mid-year and at the end of the financial year to adjust for market changes or new opportunities.
What’s the difference between a financial plan and a budget?
A budget is a short-term, detailed projection of revenue and expenses. A financial plan is broader, covering strategy, goals, cash flow, risk management, and growth.
Should I include debt repayments in my financial plan?
Absolutely. Debt repayments impact your cash flow and financial risk profile. Include all loans, credit lines, and interest payments in your forecast.
How do I plan for unexpected costs?
Create a contingency fund with at least 3 months’ operating expenses. Also, build in 5–10% flexibility in your budget for price hikes or emergencies.
Is hiring a financial / business advisor worth it for small businesses?
Yes—especially if your business is growing, your finances are complex, or you’re making major decisions. A good advisor can help you save on taxes, avoid risk, and uncover opportunities you might miss alone.
Need help? Chat with one of Leenane Templeton’s advisors today. Contact Us