For many Australian business owners, financial reporting becomes something they think about mainly at tax time. But waiting until the end of the financial year to examine the numbers can make it harder to spot rising costs, cash flow pressure or changes in profitability while there is still time to respond.
There is also a compliance reason to keep your financial records in order. The Australian Securities and Investments Commission (ASIC) has continued to focus on financial reporting compliance, including action against companies for failing to lodge financial reports on time. In 2025, 12 large proprietary companies received infringement notices totalling more than $2.2 million. In March 2026, three companies associated with the Mecca group paid $594,000, while four companies within the Canva Group paid a combined $792,000 in infringement notices in May.
For SMEs and service businesses, the takeaway is simple: keeping accurate, up-to-date financial information can support both better planning and compliance.
Financial Reporting and Compliance in Australia
Monthly management reports are useful for running your business, but they are different from statutory financial reports that some Australian companies are required to prepare and lodge.
ASIC requires certain entities to lodge financial reports, including public companies, large proprietary companies and some small proprietary companies. A proprietary company is generally considered large when it meets at least two of these thresholds:
- Consolidated revenue of $50 million or more
- Consolidated gross assets of $25 million or more
- 100 or more employees
Certain foreign-controlled companies and companies with crowd-sourced funding shareholders can also have reporting obligations.
Most domestic small proprietary companies do not have to prepare and lodge annual financial reports with ASIC, although exceptions apply. This means Australian law does not require every SME to prepare the same financial reports every month. Instead, monthly reporting is a valuable management practice, while statutory obligations depend on your entity structure and circumstances.
For companies that do have reporting obligations, ASIC requires financial reports to comply with applicable accounting standards, with specific requirements around preparation, audit and lodgement.
If you are unsure which requirements apply to your company, professional accounting services for small businesses can help clarify your obligations.
KEY FINANCIAL REPORTS:
1. Profit and Loss Statement
This shows revenue and expenses over a particular period and whether your business made a profit or loss. The Australian Government notes that P&Ls are commonly prepared monthly, quarterly or annually.
Each month, look at:
- Revenue by service or client
- Gross profit and margins
- Employee and contractor costs
- Overheads
- Marketing expenses
- Net profit
Comparing these figures with previous months can reveal rising costs, weaker sales or changing margins. This can inform decisions around pricing, spending and sales.
2. Balance Sheet
This is a snapshot of your financial position at a particular point in time. It records your assets and liabilities to help you understand working capital and liquidity by considering:
- How much cash is available?
- Are accounts receivable increasing?
- Are supplier or tax liabilities building up?
- Has business debt changed?
- Is there enough working capital for upcoming expenses?
These figures can reveal financial pressure that may not be obvious from your profit alone.
3. Cash Flow Statement and Forecast
A cash flow statement tracks money moving into and out of your business, while a forecast helps you plan for future commitments. The Australian Government recommends updating cash flow information regularly to identify potential issues and plan for upcoming costs.
Review upcoming:
- Tax and BAS payments
- Payroll and superannuation
- Supplier invoices
- Loan repayments
- Major purchases
- Expected customer receipts
For growing companies that need more detailed forecasting and financial oversight, outsourced CFO services in Sydney, for instance, can provide support with cash flow planning, budgeting and financial strategy.
4. Budget vs Actual Report
Comparing your budget with actual results helps you see where revenue and spending are ahead of or behind expectations. These insights can help you adjust spending or update your forecast.
Schedule time each month to compare actual results with your budget and adjust your plans as needed. Rather than treating your annual budget as a static document, use it as a guide that evolves with your trading conditions.
5. Accounts Receivable and Accounts Payable
An accounts receivable report shows outstanding customer invoices and how long they have remained unpaid. It helps you follow up overdue accounts before they create additional cash flow pressure. Check your accounts payable to understand what you owe suppliers and when payments are due.
For companies without an in-house finance team, bookkeeping services for small businesses can help keep invoices, bills, reconciliations and financial records up to date.
How Often Should You Review Your Financial Reports?
There is no single schedule that suits every business, but a monthly review provides a practical rhythm for many SMEs and service providers. The Australian Government recommends regularly reviewing key financial documents and conducting a broader financial health check at least annually.
A simple monthly process could be:
- Finalise bookkeeping and bank reconciliations.
- Compare your P&L with previous months and your budget.
- Check the balance sheet for changes in cash, debt, receivables and liabilities.
- Review cash flow and upcoming commitments.
- Follow up overdue invoices and upcoming supplier payments.
- Identify unusual results and decide what action is needed.
The goal is not to produce more paperwork. It is to have timely, accurate information that helps you understand what is happening and decide what to do next.
Partner with Outsourced Accounting Services in Sydney
Keeping up with bookkeeping, reporting and compliance can take valuable time away from running your company. Working with expert accounting firms in Sydney can give you professional financial support without having to build a large internal finance team.
At Keeping Company, we provide tailored financial management solutions from outsourced bookkeeping services in Sydney to strategic CFO services for small business. Our team can help you stay on top of your numbers and plan ahead.
If you are looking for experienced accountants in Sydney to help with your financial reporting, compliance and planning, contact us to discuss the right support for your business.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice, and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Ryan Miller is the founder of Keeping Company, May 2011 – Present. A tie-loathing, people person with an entrepreneurial spirit. Ryan’s drive to modernize the accounting industry coupled with his desire to help people succeed saw the birth of Keeping Company. Focusing on the SME space, KeepingCo. empowers business owners by providing high-quality end-to-end accounting and business advisory services.
Ryan took his first Accounting role working at KPMG. He went onto further refine his skills as a Chartered Accountant taking the role of Director of a Chartered Accounting firm in Erskineville.
Ryan is a fully qualified Chartered Accountant and a member of the Institute for Chartered Accountants Australia and New Zealand. He is also a Registered Tax Agent and holds a Bachelor of Commerce from the University of South Australia.