Nearly 80% of Australian small to medium businesses (SMBs) have experienced cash flow impacts in the past year, according to a survey commissioned by CommBank.

The most common factors affecting cash flow include declining revenue (35%), low cash reserves (30%), and seasonal fluctuations (27%).

In response to these challenges, 85% of surveyed businesses have employed one or more specific strategies to manage cash flow. These include reviewing or decreasing expenses, maintaining a cash reserve, finding additional revenue streams, and increasing sales and/or pricing. However, 27% of Aussie small businesses have resorted to dipping into personal savings or not paying themselves a salary, or both, in the last year.

Rebecca Warren, CBA Executive General Manager Small Business Banking, said, “For small businesses, success often hinges on a delicate balancing act as they constantly juggle various aspects of their operations, from managing customers and employees to dealing with suppliers and vendors. It’s not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMBs.

“While it’s encouraging to see small business owners take proactive steps to manage their cash flow, some of those strategies – like dipping into savings or not paying themselves a salary – may not be what’s best for the business or the business owner for the long term.”

CommBank is partnering with the Australian Graduate School Management at University of NSW Sydney Business School to create a tailored course to help small business owners better understand and optimise their cash flow. The Cash Flow Management course includes expert advice, strategies and easy-to-use tools and is available online free of charge to all 2.5 million Australian small businesses.

Professor Nick Wailes, Dean of Lifelong learning at UNSW, added, “We recognise the vital role small businesses play in the Australian economy and are dedicated to equipping them with the tools and knowledge needed to navigate complex financial challenges. This partnership with CommBank demonstrates how working together can address real-world business needs.”

The Cash Flow Management course is designed to provide practical insights that empower business owners to make informed decisions and build financial resilience, Wailes said.

"By offering this course, we aim to reach as many small business owners as possible, helping them create sustainable growth and secure their future in an increasingly challenging economic environment.”

The survey was carried out online by YouGov with a total sample size of 507 adults, undertaken between 31 October - 5 November 2024.