EOFY is not just paperwork. It’s a moment to look your business in the eye and ask a calm question:
Where did the money actually go?
Not where you hoped it went. Not where it “should” have gone. Where it really went.
This week is about building clarity. And clarity is power.
The difference between profit and cash flow
Profit is what’s left after income minus expenses, usually shown in your profit and loss report.
Cash flow is what actually happens in your bank account.
You can be profitable and still feel broke if:
- customers pay late
- you have large stock purchases
- loan repayments are heavy
- wages are high in certain months
- tax and BAS payments hit at the wrong time
This blog is about the cash flow view, because that’s what most SMEs feel day to day.
The simplest cash flow exercise (15 to 30 minutes)
You do not need a complicated spreadsheet.
You need:
- your bank transactions (last 3 months)
- a simple set of categories
- curiosity without judgement
Step 1: Choose a time window
Start with the last 3 months. It’s recent enough to remember, and long enough to show patterns.
Step 2: Group spending into categories
Use categories like:
- Cost of sales (suppliers, stock)
- People (wages, super, contractors)
- Premises (rent, utilities)
- Vehicles and travel
- Marketing and sales
- Admin and software
- Finance (fees, interest)
- Tax and compliance
- Owner drawings/transfers
Step 3: Find your top 3 spending categories
This is the key insight.
Not your top 30. Your top 3.
Step 4: Pick one small improvement
Not a total overhaul. One small change.
For example:
- renegotiate one subscription
- tighten invoice follow-up so you get paid faster
- plan stock ordering more tightly
- schedule wages review
- increase prices slightly if margins are too tight (with advice)
Small steps create big movement.
Why this matters at EOFY
Because EOFY is not just about reporting the past. It’s about setting up the next year to be lighter.
When you understand your top spending categories, you can:
- plan your next quarter better
- reduce money leaks
- make decisions with confidence
- stop guessing
Small business examples
Cafe
Top spend categories are often:
- suppliers/stock
- wages
- rent
A small improvement might be:
- a tighter stock ordering routine
- reviewing roster efficiency
- checking menu pricing and margins with advice
Salon
Top spend categories might be:
- rent
- wages (if staff)
- product suppliers and software subscriptions
A small improvement might be:
- reviewing appointment scheduling and no-show policy
- tightening stock ordering
- trimming unused subscriptions
Tradie
Top spend categories might be:
- vehicle and fuel
- tools and materials
- subcontractors
A small improvement might be:
- job pricing review
- better invoicing rhythm
- tracking materials more accurately
The emotional side (because it’s real)
Many business owners avoid looking because they fear what they’ll see.
Here is the truth: numbers are neutral.
They are information, not judgement.
Seeing the truth is the start of control.
This is where calm begins.
What to do this week (your Money Hour)
- Pull your last 3 months of spending (bank transactions or reports)
- Group them into categories
- Identify top 3 spend categories
- Choose one small change for July
Write it down.
If you don’t write it down, it becomes a thought you forget.
Your Next Steps:
If you want help reading your cash flow patterns, we can help you turn your numbers into clear next steps.
We’ll help you:
- identify the top 3 categories that drive your cash flow
- spot one or two “money leaks”
- create a simple plan for the new financial year
The “top 3, bottom 1” method
Once you’ve found your top 3 spending categories, find your “bottom 1”:
The smallest expense category that still creates friction.
Examples:
- a subscription you forgot you had
- banking fees that have crept up
- small supplies that aren’t tracked well
Why this works:
- it’s a small change with quick relief
- it builds the habit of reviewing, not avoiding
Cash flow warning signs to watch (no panic, just clarity)
These patterns are worth noting:
- income is steady but the bank balance keeps falling
- you are relying on tax refunds to catch up
- overdue invoices keep growing
- supplier bills are always being delayed
- wages blow out without a clear reason
If you see these, it doesn’t mean you’re failing. It means you need visibility and a plan.
Where MYOB and good systems help (high level)
Good software and processes can reduce stress by:
- automating invoice reminders
- using bank feeds to code faster
- giving you clear category reports
- helping you track what’s owed and what you owe
The goal is not more features. The goal is less admin load.
Your Money Hour checklist
- Pull last 3 months of bank spending
- Group into categories
- Find top 3 categories
- Choose one small July improvement
- Write it down and book it into your calendar
CTA: Want our cash flow categories template? Comment CASH or contact us and we’ll send it through.
