As Australian businesses brace themselves for a challenging FY24, we have launched our comprehensive ‘End of Financial Year Survival Guide 2023‘. The report, enriched with insights from our panel of expert contributors, provides valuable tips and tools to help businesses prepare for the next 12 months. We offer an economist’s perspective on the outlook for FY24, and industry-leading guidance on optimising cash flow and recognising early indicators of insolvency, empowering businesses for growth in the new financial year.
Download the full report here.
Insights from the report
Economic Outlook for FY24: CreditorWatch Chief Economist Anneke Thompson highlights the significant challenges facing businesses, particularly those in the discretionary goods and services sector. The impact of the Reserve Bank of Australia’s 11 cash rate rises will be felt by a considerable portion of Australian households with home loans. Consumer confidence is at record lows, and retail trade volumes are declining despite nominal retail turnover increasing due to inflation.
Labour Force Dynamics: The report predicts noticeable changes in the labour force dynamics compared to the previous financial year. While employees have had some protection from high inflation and interest rates, the unemployment rate is expected to rise. Factors such as a drop in job vacancies following the post-lockdown surge and increased labour supply through overseas migration contribute to this trend, which will impact consumer spending.
Challenges for the Food and Beverage Industry: The food and beverage industry face particular risks in the coming year. Rising and unpredictable supply costs, coupled with softer demand, present significant challenges for restaurants and cafes. The anticipated sharp increase in energy costs, especially gas, in September will further impact energy-intensive sectors.
Adapting Strategies for Success: To thrive in the challenging economic landscape, businesses must be proactive and adaptable. The report suggests optimising cash flow through various measures such as filing tax returns quickly, prompt invoicing, offering early payment incentives, accepting multiple payment methods, and assessing the cash conversion cycle.
CreditorWatch CEO, Patrick Coghlan says:
“It is important to note that the businesses that take proactive measures and prepare for the challenging conditions ahead will gain a significant advantage over their competitors when conditions eventually improve.
This survival guide aims to equip you with useful tools and tips to help your business begin the next financial year in the strongest possible position.”
Download the ‘End of Financial Year Survival Guide 2023’ here.
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