3 finance mistakes business owners make at the start of a new financial year

Start of a new year, start of a new you.

We’re already a few weeks into the new financial year and I have clients who are already looking towards how to improve their finance game. These are my favourite type of clients to work with- ones that start on a plan early.

As I was helping them to improve their vehicle finance structuring, they were keen to hear about mistakes to avoid doing and I was more than happy to flag to them what sort of common mistakes I’ve seen other business owners make for them to avoid. I’ve written them down here for anyone else who is curious:

Mistake 1: Waiting to upgrade your vehicle

Business owners often tell themselves that they’ll sort the ute or replace the old gear later in the year… but later never comes. Vehicle prices aren’t dropping, equipment costs are growing, and every month they delay is another one where they’re running gear that is slow or breaks down on site, killing their productivity & missing out on income because of missed appointments.

The one’s who win at life move early before things break-down. They lock in finance in July, structure it in a tax-effective manner, and spend the rest of the year focused on the work and growing their business. They go to a dealership or reach out to a lending specialist because they can’t do it all themselves.

Mistake 2: Going straight to the bank.

The bank has a one objective when they deal with you. They’re always going to sell you their products at their rates which means they’re not shopping around for you for the best ones for your business.

A lending specialist does. We go to market across a wide panel of lenders, find the best rate for you and your situation, and get it done faster with less paperwork. And it doesn’t cost you a thing because we’re paid by the lender, not you.

Mistake 3: Mixing personal and business finance

Using their personal funds for business expenses and running income through their personal account. They financed a work vehicle in their own personal name.

It all seems harmless until they’re sitting in front of an accountant trying to untangle it all with the endless question of “Is this a business or personal expense?” 100 times over, or until ATO decides to take a closer look. Early is the perfect time to clean up your structure and start the new financial year stronger.

Curious to what you could be doing wrong?

These simple fixes can make a massive difference and you can message me if you are curious of other mistakes you may be doing and let me take a look at your current setup. You can email me at vanessa@financiallyfitf.com.au or book a 30 min complimentary chat with me at https://www.tinyurl.com/financiallyfitfbookings

Don’t worry, I don’t bite.

Learn from the rich to become rich.

The conversation that sparked this post

Most people have heard of Rich Dad, Poor Dad by Robert Kiyosaki. It’s one of the best-selling personal finance books of all time, and its core lesson has stuck with millions of readers for a reason. We were reminded of it the other day during a conversation with a client. They’d just used their business savings to pay upfront for new tools and equipment.

On the surface, that seems like the responsible thing to do: No debt, no interest, no fuss. But from our 12+ years of experience financing business owners and tradies across Australia every day, that decision is a classic case of the “Poor Dad” mindset and it could be quietly holding their business back. Here’s why.

The “Poor Dad” mindset vs the “Rich Dad” mindset

In Rich Dad, Poor Dad, Kiyosaki draws a sharp line between two ways of thinking about money: The Poor Dad mindset treats cash as something to be spent- draining savings to buy what you need outright, even when it means tying up capital in things that lose value over time.

The Rich Dad mindset treats cash as a tool which is to be deployed strategically, while using financing facilities to acquire income-producing or business-critical assets. For business owners, this is about shifting your mind towards a smarter cash-flow strategy.

Why tradies and SME owners are better off financing equipment (not buying it outright with cash)

If you’re a small business owner, tradie or contractor chances are your business depends on assets like: Utes, vans and trucks, power tools and trade equipment, Machinery and attachments, technology and business equipment These assets make you money. But they also depreciate — meaning the moment you buy them with cash, you’ve locked value out of your business that could have been working harder elsewhere. Here’s why financing these assets, instead of paying cash, is usually the smarter move:

1. It’s more tax-effective depending on how the finance is structured

You may be able to claim GST credits, interest, and depreciation including under the instant asset write-off as tax deductions. Paying cash upfront can mean missing out on these advantages altogether. (Always confirm eligibility and structuring with an accountant… but this is exactly the kind of conversation worth having before your next big purchase.)

2. It preserves your cash-flow

Cash flow is the single biggest reason small businesses run into trouble — not lack of profit. When you finance equipment instead of draining your savings, you keep cash on hand for: Wages and BAS Materials and stock Slow months or unexpected costs. Our goal with cash-flow is always growth, we are not here to just sustain it.

3. It keeps your capital working for you

This is the heart of the Rich Dad philosophy: your money should be working, not sitting in a depreciating asset. The average person knows this as just applying to vehicles or trucks but it is for everything that you also pay cash for (think of inflation or just flat rates of depreciation with use). Cash sitting outside the business or reinvested into opportunities, appreciating assets, or growth — has the potential to build exponentially more wealth. Cash tied up in a ute or a set of tools , the value is already decreasing the moment you utilise it.

4. It separates business debt from personal risk

Using savings to fund every purchase can also mean quietly wearing out the safety net that protects you and your business when things get tough. Financing keeps a clear line between what the business owes and what you personally hold in reserve, which prevents you from putting either lifestyle at risk of collapse.

Rich Dad thinking, applied to your trade or SME

Ask yourself the same question we asked our client the other day:

“If this asset makes you money, or is critical to running your business, why are you paying for it with cash you could be using elsewhere?”

That’s not just a decent quote. It’s the entire philosophy behind how we help aussie business owners and tradies finance vehicles, tools, and equipment every day. If it makes you money, we can finance it.

Common assets business owners and tradies finance (instead of paying with cash)

1. Utes, vans, trucks and trailers
2. Excavators, skid steers and attachments
3. Power tools and trade equipment
4. Business vehicles and fleet vehicles
5. Novated leases for staff vehicles
6. Technology, fit-outs and business equipment

The bottom line: paying cash feels safe

Paying cash feels safe. But in business, safety isn’t about avoiding debt altogether — it’s about protecting your cash flow, maximising your tax position, and putting your capital where it can actually grow.

That’s the Rich Dad way. And it’s exactly the kind of finance health check we run for tradies and SME owners every day.

Ready for a finance health check?

If you’ve been paying cash for tools, vehicles or equipment or you’re not sure whether your current setup is costing you at tax time, let’s have a chat. Reach out to us at vanessa@financiallyfitf.com.au or fill out the form on our Contact page and we’ll run you through your options.