Common Finance Gaps SMEs Overlook (and How to Close Them)

Jason Cui
Sep 24
2 min read

Running a small or medium business is tough — owners are often focused on sales, delivery, and customers. Finance and tax can easily fall into the “do later” pile, which creates blind spots. At Jucentra, we often see the same gaps repeating across industries.

1. Finance Gaps

What SMEs think they need: A bookkeeper or “someone to do the numbers.”

What they actually need: Forward-looking financial support that goes beyond bookkeeping.

Common gaps:

Cash flow forecasting — Many SMEs rely on gut feel rather than structured forecasts.
Budgeting & variance analysis — Owners don’t compare actual results against budgets, so overspending creeps in.
Working capital management — Debtors and creditors aren’t tracked closely, causing liquidity crunches.
KPIs & dashboards — Most SMEs don’t measure what matters (e.g., gross margin, debtor days, job profitability).

2. Tax Gaps

What SMEs think they need: “Just get my BAS and tax return lodged.”

What they actually need: A proactive approach to tax planning, compliance, and structuring.

Common gaps:

Poor record-keeping — Missed deductions, especially for vehicles, home office, training, and depreciation.
Structuring mistakes — Choosing the wrong entity (sole trader vs company vs trust) without tax or asset-protection advice.
Timing of income and expenses — Not using tax planning to manage when revenue is recognised or when deductions are claimed.
R&D and industry concessions — Many SMEs aren’t aware they may qualify for rebates or incentives.
Distributions and payroll tax — Misunderstandings about paying dividends, director loans, or when payroll tax applies.

3. Systems Gaps

What SMEs think they need: A cheap accounting software package.

What they actually need: Systems that scale and integrate with their operations.

Common gaps:

Outgrowing basic software — Staying too long on entry-level tools (like Xero/QuickBooks basics) without automation or integration.
Manual spreadsheets — High risk of errors, no audit trail, time wasted reconciling.
Lack of integration — Finance systems not talking to sales, CRM, or inventory, leading to double entry and mismatched data.
No reporting capability — Owners can’t easily see real-time profitability by product, customer, or project.
Cybersecurity & access controls — Weak controls around user access, backups, and data security.

The SME Mindset Gap

Owners often think of finance as a cost rather than a value creator.
Compliance tasks (BAS, tax return) are prioritised, while advisory and systems improvements are delayed.
Many fear “it will cost too much,” not realising that better finance can unlock growth, reduce tax, and save time.