How much money can I actually afford to spend right now?
Short answer: Not your account balance. Your total balance is your balance minus tax, super, payroll and committed bills coming up.
Most business owners answer this question by glancing at their account balance. That number almost always overstates what's truly available.
The honest answer requires subtracting everything already spoken for - and what's left is your real spending capacity.
Start with the account balance, then subtract reality
Your account balance includes GST you've collected for the ATO, PAYG you've withheld on behalf of staff, super that's accrued this quarter, and bills already approved but not yet paid.
None of that money is yours to spend, even though it's sitting in your account.
The four pools that should come off the top
GST collected on recent sales - held in trust until BAS.
PAYG withheld from this pay cycle - held in trust until BAS.
Super accrued since the last payment date - owed quarterly.
Upcoming payroll, scheduled bills and recurring subscriptions for the next 30 days.
What's left is your operating cash
Once those pools are removed, the remaining number is what you can deploy - into hiring, marketing, stock, equipment or owner drawings - without creating future pressure.
Many businesses find that figure is 30–60% smaller than their account balance. That's not a problem to hide from - it's the number that makes good decisions possible.
Make it automatic, not manual
Calculating this every week by hand is tedious and easy to skip. The most reliable approach is to set up reserves that move tax and super out of the operating account automatically as they accrue.
When the structure is right, your balance becomes your After obligations - no spreadsheet required.
- Your account balance is not the same as your total balance after obligations.
- Subtract GST, PAYG, accrued super and committed bills first.
- The total balance after obligations is typically lower than the displayed account balance, sometimes materially so.
- Automating reserves makes 'what can I spend?' a one-glance answer.