News
July, August and September are done. The first quarter of the financial year is in the books, and the Q1 BAS is due on 28 October for most businesses that lodge it themselves.
Back in August we wrote about why Q1 matters and what to do while it was underway. This is the other half of that conversation. The quarter is over, so the question now is what it’s actually telling you.
The revenue figure for the quarter matters less than the gap between it and what you expected.
Put Q1 next to two things: the estimate you made for the year back in July, and the same quarter last year. If you’re ahead, find out why. If you’re behind, find out whether it’s timing or a trend.
One quarter can mislead. A large job that landed in the last week of September. A slow July after the end-of-financial-year rush. A price rise that only started in August.
Three months show direction, not destination. The useful question to ask of every surprise is simple: will it happen again next quarter?
A business can have a strong quarter on paper and a thin bank balance at the same time.
Look at what customers owe you and how long it’s taking to arrive. Look at what you’ve already committed to, like stock, equipment or a new hire. And look at what’s been set aside for tax. If profit is up but cash hasn’t followed, that’s worth understanding before the holiday period, when slower trade and staff leave often land together.
This was also the first quarter where super guarantee left the account with each pay run, rather than in one payment after the quarter ended.
If cash felt tighter than usual in July and August, that may be part of the reason. Your Q1 figures are the first real read on how the new rhythm sits with your cash flow, and whether your buffer needs adjusting.
The most useful thing to do with Q1 is to redo your full-year estimate.
That revised number feeds almost everything that follows. Your likely tax position. Whether your tax instalments still look right. How much you can comfortably draw from the business. Whether a planned purchase still makes sense. How much room there may be for super contributions before 30 June.
Your Q1 BAS, the list of who owes you money, your bank balance on 30 September and the estimate you made in July. Put those four side by side and most of the story is there.
Q1 won’t tell you how the year ends. It will tell you whether the plan you made in July still holds.
As always, if anything sparks a question or you’d like to sense-check your position, we’re here for a conversation.
Call 1300 866 113 or book via our website.
