What the October 2025 SME Report Means for Your Clients (and Your Practice)
Australian SMEs are heading into the final quarter of 2025 with a curious mix of resilience and pressure. Turnover has softened from recent months yet remains stronger than the same time last year; business confidence has ticked up, but consumer confidence is still subdued; and payment risk is elevated even as insolvencies edge down from a peak. That’s the noisy backdrop you—and your clients—are navigating right now. The Benchmarking Group Pty Ltd
The signal in the noise
Turnover: ABS indicators showed a softer August print after earlier gains, with expectations of stabilisation into September–October as rate cuts flow through. Translation: don’t overreact to a single soft month, but do stress-test cash flow. The Benchmarking Group Pty Ltd
Business vs consumer confidence: Business confidence lifted to 101.6 in September (still below long-run averages), while consumer confidence hovered around 86.5, one of the longest sub-90 runs since 1990. That gap explains why some B2B clients feel “fine” while B2C clients remain cautious. The Benchmarking Group Pty Ltd
Macro backdrop: The RBA notes conditions have improved for small business over the year, but remain weaker than for large firms—so discipline still matters. Reserve Bank of Australia
Risk is still wearing hi-vis
Payment stress: B2B payment defaults jumped 19% in July and held at that higher level through August—an early-warning sign for cash-flow pressure and potential insolvencies in the months ahead. Construction and hospitality still dominate insolvency numbers. The Benchmarking Group Pty Ltd
Owner wellbeing & capability gaps: Owners report high burnout and low confidence in financial literacy—cash flow remains the top worry. This is exactly where a proactive accountant can change outcomes with forecasting, benchmarking and clear actions. The Benchmarking Group Pty Ltd
What this means for accountants
Your clients need two things from you right now: clarity and cover.
Clarity
Re-forecast cash flow: Use conservative assumptions for Q4–Q1. Layer in “what-ifs” for late payments and seasonality. The Benchmarking Group Pty Ltd
Benchmark performance: Show clients how they stack up against peers to find quick wins on margin and working capital. The Benchmarking Group Pty Ltd
Watch the canaries: Track payment patterns, ATO debts and debtor aging weekly until conditions normalise. The Benchmarking Group Pty Ltd
Cover
Given elevated payment risk and ongoing uncertainty, now’s the time to sanity-check your client’s protections—and your own.
Professional Indemnity (PI): Claims frequency can rise when cash is tight and expectations diverge. Ensure your practice—and clients—hold PI limits that reflect today’s engagement scope, not last year’s.
Cyber: Persistently cautious consumers and digitised workflows put a premium on trust. One breach can undo years of goodwill; cyber cover plus basic controls is a non-negotiable for firms handling sensitive financial data.
Claims readiness: Have a “who/what/how fast” plan: who to call, what to document, and how to lodge. A calm, prompt response shortens downtime.
How Abacus helps you de-risk (quietly and quickly)
We know the deadlines, the inbox chaos and the stakes. Abacus handles the advice, quotes and renewals; our partner PSC Insurance places cover with quality insurers and backs you at claim time—so you get one joined-up path to getting (and staying) covered with minimal admin.
Simple renewals: Avoid last-minute scrambles that risk coverage gaps.
Right-sized limits: Practical guidance on PI and cyber aligned to your practice profile.
Claims support that speaks “accountant”: Clear steps, realistic timeframes, fewer surprises.
The October SME picture is “steady, with potholes.” If you tighten cash-flow habits and lock in fit-for-purpose cover, you’ll help clients stay in the black—and keep your practice protected—heading into 2026.
