30 June Review: Questions to Ask When Doing Your 2026/27 Budget
30 June is a date many people treat as a reset point for their business. The financial year ends, tax work starts and new budgets are prepared. It can be easy to think the new financial year means a fresh start.
But when reviewing the position and preparing budgets for 2026/27, there are important questions to ask if solvency is a concern.
- Is the business making money, or just keeping everyone busy?
- What sales are needed each month just to break even?
- Are margins still working, or have costs moved ahead of prices?
- Is there enough working capital to pay wages, superannuation, tax and rent when they fall due?
- Are ATO repayment arrangements actually being met?
- Are creditors being stretched further to keep the business going?
- Are director drawings increasing relative to profit?
- Is the budget based on realistic assumptions, or hope?
- What happens if the first quarter is weaker than expected?
- Is the business starting the new year in a better position, or carrying old pressure forward?
If those questions raise concerns, it may be time for a serious discussion with your accountant, lawyer or someone like me about what options are available.
Sometimes the business just needs a clearer plan. That might involve improving margins, reducing costs, managing spending, tightening debtor collection or dealing with tax arrears before they get worse.
If the issues are more serious, restructuring or insolvency advice may be needed. The options might include small business restructuring, selling the business, liquidation or closure.
An initial conversation does not mean the company is automatically going into liquidation. It is about understanding the situation, identifying the options and knowing the risks.
