Sales are up 20%. You've hired two new staff. Customer demand is strong. But your bank balance? Still uncomfortably low.
This disconnect worries many business owners. You're working harder than ever, yet the cash never seems to reflect it. The question keeps surfacing: where is the money going?
Your bank balance shows one number at one moment. It doesn't show how your business is performing, where pressure is building, or what you should do next.
You're not alone in this confusion. According to Findex's SME Growth Index 2026, more than four in five Australian SMEs lack strategic business advice - leaving critical financial questions unanswered.
Your bank balance tells you how much cash sits in your account right now. That's it.
It doesn't show:
How that cash got there
How long it needs to last
What commitments are coming
Whether you're profitable
If customers owe you money
What you've invested in growth
A low balance doesn't always mean poor business performance. You might have $50,000 in outstanding invoices from reliable customers. You might have just purchased $30,000 in stock to fulfil new orders. You might have invested in equipment that will increase capacity by 40%.
In these cases, cash is being used, not lost. Your bank balance can't tell the difference.
This timing gap creates cash flow issues for growing businesses. You're managing supplier payments, tax obligations, loan repayments, and payroll. Each one changes your cash position instantly. Meanwhile, your income arrives on customer payment terms - often 30, 60, or 90 days later.
Most SMEs have regular financial reporting in place: profit and loss statements, balance sheets, cash flow summaries. These reports sit in your inbox or get filed away.
The problem isn't the reports. It's interpretation.
Without someone explaining what the numbers mean for your business specifically, financial reports become background noise. You glance at them, sense something might be wrong, but can't pinpoint what or why.
This explains why 45% of SME owners say they've made wrong business decisions due to lack of proper guidance. The information exists, but the insight doesn't.
This creates a gap between information and action. You're left wondering:
Is this result good or bad for a business my size?
What's driving these numbers?
What should I change this quarter?
Without financial clarity, decision-making slows down or becomes reactive, directly impacting business performance.
Reactive decisions look like:
Cutting marketing spend because cash is tight (even though marketing drives your pipeline)
Pausing a hire you need (delaying revenue you could have captured)
Cancelling equipment upgrades (limiting capacity for six months)
These decisions prioritise short-term cash over long-term value. You're protecting today's bank balance at the expense of next quarter's growth.
The cost shows up as stress, second-guessing, and constant mental load. You feel like you should have answers, but don't.
According to the SME Growth Index 2026, 31% of SMEs identify cash flow and capital management as major unmet advice needs. The issue isn't access to data. It's the lack of clear, practical insight into how money moves through the business and what supports its next stage.
The gap is real: while compliance advice keeps your business legally compliant, it doesn't help you understand why your bank balance doesn't match your revenue growth, or whether you can afford to expand.
Growing businesses absorb cash. More sales mean more stock, more staff, and more operating expenses long before the revenue arrives in your account.
Here's what each metric tells you:
Profit reflects business performance over time: Shows whether your business model works and whether you’re making more than you spend. You can be profitable and still run out of cash if timing is off. Profit is also calculated according to accounting rules. As a result, it can include non-cash items such as depreciation expenses and revenue that could be difficult to collect, such as doubtful debtors.
Cash flow reflects timing: Shows when money moves in and out. You might be profitable on paper but waiting 60 days for customer payments while supplier bills arrive in 14 days.
Capital structure reflects how you're funded: Shows whether growth comes from owner investment, retained profits, or debt. Each has different implications for risk and sustainability.
When you blur these three together, decision-making becomes guesswork. This is where strategic advice becomes critical and your business advisory relationship needs to move beyond compliance to help you understand what the numbers mean and what to do next.
Instead of checking your bank account and worrying, track these three metrics:
1. Accounts receivable aging
What it shows: How much customers owe you and how overdue those invoices are.
Why it matters: $40,000 in receivables due within 7 days is very different to $40,000 that's 60 days overdue. This tells you whether cash is coming or whether you have a collections problem.
2. Cash runway
What it shows: How many weeks or months of operating expenses you can cover with available cash.
Why it matters: If you have 8 weeks of runway and a major client pays in 4 weeks, you're fine. If you have 3 weeks of runway and your biggest invoice is 60 days out, you have a problem to solve now.
3. Working capital ratio
What it shows: Current assets divided by current liabilities. A ratio above 1.2 generally indicates healthy short-term financial health.
Why it matters: Tells you whether you have enough liquid assets to cover short-term obligations without scrambling.
These three numbers, reviewed together monthly, give you the clarity your bank balance can't.
With proper interpretation of your financial position, you can answer:
Can we afford to hire now, or should we wait?
Check cash runway and upcoming receivables. If you have 12 weeks of runway and strong collections, you can hire. If runway is 4 weeks and receivables are uncertain, wait or solve the collections issue first.
Why are sales growing but cash is still tight?
Look at timing. Growing sales often require upfront investment in stock, staff, and marketing before revenue arrives. This is normal, not a crisis but you need to plan for it.
How much can the business safely draw or reinvest?
Review profit, cash runway, and upcoming obligations. You can draw more when profit is strong, cash runway is healthy, and no major expenses loom. Otherwise, reinvest in the business or wait.
Is this the right time to fund growth, and if so, how?
If working capital is tight but opportunities are strong, debt or equity might make sense. If cash flow is stable and profit is growing, you might fund growth from retained earnings.
These aren't theoretical questions. They're decisions you face quarterly, if not monthly. Yet without strategic advice, 45% of business owners make these calls without proper guidance - and get them wrong.
A bank balance alone creates uncertainty. It triggers reactive decisions that don't move your business forward - even when business performance is strong.
Real confidence comes from understanding what sits behind the numbers. When you can interpret financial information and connect it to business decisions, you see what's working, what needs attention, and where to focus next.
The difference between compliance and strategic advice is the difference between knowing what happened last quarter and knowing what to do next quarter.
This is where Business Advisory at Findex helps. Instead of reacting to cash pressure, you gain insight to plan ahead, test decisions, and manage financial health with intent.
Your numbers stop being something to worry about. They become something to work with.
Find an office