State of SME Financial Management in Australia

This report examines the current state of financial management among small and medium-sized enterprises (SMEs) in Australia as of October 2025. It outlines the significant challenges faced by SMEs, including cash flow strain, rising operating costs, and the reliance on manual processes for expense management. The report highlights that 80% of SMEs still use manual methods to reconcile expenses, leading to inefficiencies and errors. Additionally, it presents the findings of an OFX (IPSOS) survey involving over 500 SME accountants and finance decision-makers, which reveals a strong appetite for modernization through digital tools and automation. The report emphasizes the importance of real-time visibility in transactions and the need for stronger data security measures. It concludes by discussing the critical steps SMEs must take to build financial resilience and adapt to future challenges, including the integration of automated solutions and improved cash management strategies.