With ongoing volatility in the fuel markets, tightening global supply chains, and persistent inflation, the operating environment for Australian businesses is becoming increasingly uncertain.
Professional services firms are typically more resilient than most, but they are not immune in periods of economic pressure. Rising fuel costs, ongoing geopolitical uncertainty, tightening liquidity, and the flow-on effects of inflation and interest rates are now starting to show up in ways that go beyond client balance sheets, they are beginning to affect how firms themselves operate day to day.
For advisors, this creates a window of opportunity. The firms that navigate volatile periods best are not those reacting in the moment, but those that have already taken time to prepare.
One of the more immediate and visible pressure points is workforce disruption. Increased fuel costs and the potential for supply constraints raise the very real prospect of a return to more consistent remote working. Many firms moved quickly during COVID, but not all of those systems and policies have been maintained or revisited.
It may be worth assessing whether your team could seamlessly transition back to a more remote environment if required. That includes not just access to systems, but whether staff have appropriate home setups from both a productivity and occupational health and safety perspective. Policies that were hastily implemented a few years ago should be refreshed and redocumented.
From a technology perspective, firms should be stress testing whether their current systems can handle increased remote access. VPN capacity, cybersecurity protocols, and cloud capabilities all warrant review. There is also a more practical overlay if supply chain disruptions continue, even something as simple as replacing ageing hardware may become difficult. Forward planning around upgrading older equipment now, rather than later, may avoid unnecessary operational issues.
At the same time, firms should not underestimate the impact of current conditions on their own people.
Cost of living pressures, rising interest rates, and higher commuting costs are already having a tangible effect on staff. In some cases, this will translate into distraction, reduced productivity, or increased pressure of staff retention. In others, it may simply show up as disengagement.
There is a strong argument for firms to proactively consider how they support their teams through this period. This may include reviewing fuel reimbursement policies, offering greater flexibility around working arrangements, or even more structured support through employee assistance programs. These are not just “soft” initiatives, they are practical retention strategies in a tightening labour market.
Reliable resourcing is critical in professional services. Firms that fail to recognise the pressure their staff are under risk not only losing people, but losing them at precisely the time stability is most important.
Equally important is how firms manage their own financial position.
In periods of uncertainty, discipline around working capital becomes critical. This is not a period for passive WIP management or delayed follow-up on debtors. A more active approach (regularly reviewing WIP and debtors, tightening billing practices, and engaging earlier on overdue accounts) can make a meaningful difference to cash flow stability.
Firms should also take the opportunity to reassess their cost base. This is not about broad cost cutting, but rather understanding where flexibility sits within the business. There is also value in stepping through some simple scenario planning. Stress testing the business, whether through modest softening in revenue or an extension in debtor days, can help surface any potential pressure points early.
Perhaps the most important role professional services firms play in this environment, however, is in identifying and supporting at risk clients.
Early warning signs are already emerging across many sectors - extended payment terms, increased reliance on ATO debt, requests for informal payment arrangements, or a general deterioration in financial reporting timeliness and quality.
Advisors who are close to their clients are often the first to see these indicators. The opportunity lies in acting earlier, rather than later.
That may involve encouraging clients to seek restructuring advice sooner, before options narrow. In the current environment, particularly with the ATO showing a degree of flexibility in certain circumstances, there may be a broader range of viable restructuring pathways available than many directors assume.
From a relationship perspective, this is also an opportunity for firms to deepen client trust. Being proactive, rather than reactive, positions you as a strategic adviser rather than simply a service provider.
Stepping back, the common theme across all of these considerations is preparedness.
None of these measures, in isolation, are complex. But collectively, they position professional services firms to remain stable, responsive, and commercially agile in a period where uncertainty is likely to persist.
The firms that perform best over the next 12–24 months are unlikely to be those making reactive decisions under pressure. They will be the ones who took the time, early, to ensure their people are supported, their systems are robust, their cash flow is controlled, and their clients are being guided before problems fully crystallise.
