Small businesses navigating 'complex environment' of rising costs, regulations: COSBOA

COSBOA said the 2.6 million small businesses operating across Australia were navigating a complex environment shaped by rising input costs, fuel volatility, high interest rates, and upcoming reforms such as Payday Super and changes to payment surcharging.

While these pressures are well understood, COSBOA said the challenge for many small businesses was knowing how to respond, particularly when decisions around pricing, staffing, cashflow and investment are increasingly interconnected.

“Small businesses are not just dealing with one issue at a time, they are managing multiple pressures simultaneously,” said Skye Cappuccio, chief executive of COSBOA.

“In this environment, the difference between a sound decision and a costly one often comes down to having access to the right advice at the right time and acting on it early.”

The alliance said that trusted advisors can help businesses manage their finances, access funding and plan ahead.

"Early engagement can help businesses maintain cashflow, manage rising costs and interest rates, including identifying financing options early and avoiding reactive decisions under pressure – giving business owners greater certainty and more time to focus on running their business," it said.

"Advisors can assess margins, identify where cost increases are impacting profitability, and support pricing decisions, including when and how to pass on costs or adjust contracts."

In terms of preparing for Payday Super, bookkeepers and accountants can help businesses transition from quarterly to more frequent super payments, implement payroll system changes and map cashflow impacts to avoid shortfalls or penalties, the alliance said.

Advisors can also help small businesses navigate payment and surcharge changes by breaking down merchant fees, modelling the impact of removing surcharges, and supporting pricing strategies to protect margins.

"Finance and mortgage brokers can help small businesses assess their borrowing capacity, restructure existing facilities, refinance high-cost debt, and access a broader range of lenders and funding options, particularly where traditional lending pathways may be constrained," the alliance said.

Advisors can streamline reporting, automate processes and ensure compliance requirements are met efficiently, helping to free up valuable time, the alliance added.

CPA Australia chief executive Chris Freeland said small businesses are operating in an environment where rising costs, cashflow pressures and regulatory change are all hitting at the same time.

"We’re strongly encouraging business owners to strengthen their resilience by leaning on trusted advisers who know their business, understand how best to respond and can help them plan ahead," said Freeland.

"Engaging a professional adviser, like your accountant, isn’t just about compliance – it’s about protecting your business and having a trusted partner when it matters most.”