By Joelle Tabone, HLB Mann Judd Melbourne
Business owners are often focused on running their business, monitoring cash flow and winning the next client. From time to time, it’s important to pause, reflect and review your business, effectively working on the business, not just in it.
Here are some key areas to review:
Business strategy
As part of your business health check, start with strategy. Every business needs a clear strategic plan and a process for reviewing it regularly. It shouldn’t be written once and revisited only annually, but instead, should guide growth and decision-making and be updated as circumstances change.
As part of your business strategy, analyse your business strengths, weaknesses, opportunities and threats (SWOT). It’s also important to consider the broader environment, including economic conditions, competitors and market forces.
Structure, tax and legal compliance
Review whether your current business structure supports your strategic objectives, manages risk and remains tax effective.
I often recommend that clients consider their growth and exit strategy when setting up their structure, as doing so can help avoid costly restructuring later. If you outgrow your structure, tax rollover relief may be available.
Prepare and review a month-by-month annual compliance plan to ensure your tax and regulatory obligations remain up to date. Keep it to a single-page and review and update it each month. This helps you plan and quickly identify any overdue obligations.
As part of that plan, check that you have a process to ensure your Business Activity Statements (BAS) are accurate, lodged on time, and that other tax obligations are met by their due dates.
For example, from 1 July 2026, employers must pay employee superannuation with each pay run, rather than quarterly. This will affect business cash flow and may require updates to your payroll processes.
Know your numbers
As part of your business health check, it’s essential to understand the financial signals your business is sending. This means understanding not only your financial performance, but also the story behind the numbers. If numbers aren’t your strength, surround yourself with people and advisers who can support you and your business.
Monitor and plan for key measures such as revenue, gross profit, net profit and cash flow. Use business and performance ratios to track and understand trends in performance and growth. For example, revenue may be increasing, but if margins are tightening or cash collection is slowing, profitability and cash flow can still come under pressure.
Business forecasting helps you plan ahead, anticipate cash flow pressure and make decisions with greater confidence. Consider forecasting revenue, costs and cash flow over the next 12 to 24 months, then compare your forecast to actual results each month to understand what is changing and why. This can help you identify issues early and take corrective action.
What is your exit strategy?
As part of your business health check, review your exit strategy regularly so you can maximise value and reduce disruption when the time comes to step back. Consider who is most likely to purchase or take over the business, and what you need to do now to prepare.
There a several exit options, which may include:
- Selling to a third party
- Selling to a competitor
- Complete a management buy-out or introduce employee share plans
- Bring in an investor or strategic partner
- Transition the business to family (for family businesses)
Whichever path is most likely, document and plan for it.
Ultimately, a business health check is not a one-off exercise but an ongoing part of the business that enables sustainable growth and resilience. By regularly stepping back to review your strategy, structure, financial performance and long-term plans, the business is in a stronger position to respond to change, manage risk and capitalise on new opportunities.
Joelle Tabone is a Partner in HLB Mann Judd’s Business Advisory Division and a Chartered Accountant with more than 20 years of experience advising corporate, international, not-for-profit and family-owned organisations.
She provides strategic and practical advice across accounting, taxation, governance, structuring, estate planning, superannuation, succession planning and family office services. Joelle also supports international businesses expanding into Australia, including acting as an external CFO and providing outsourced back-office and compliance solutions.
Highly regarded for her attention to detail, proactive approach and broad commercial knowledge, Joelle also serves as a Non-Executive Director and adviser to several private, not-for-profit and family-owned organisations.
Visit the HLB Mann Judd website HERE.
