Why are Australian SMEs refusing to talk about money?

Money is just one of those taboo subjects in the Western world, but Australians seem to have a particular aversion to it. In fact, money has been shown in a recent survey by Members Equity Bank (ME) to be the second most uncomfortable topic of conversation – ranking only below sex as things that Aussies actively avoid discussing.

Strangest of all, the Australian Psychological Society found that worrying about personal finances was the most common cause of stress in Australia between 2011 and 2015. We lie in bed awake at night chewing our nails about our bank accounts, but we absolutely refuse to speak to anyone about it.

But why? Why do we hate to talk about money so much? And why on Earth does that aversion extend to the business world as well?

Other than sex, money is our most taboo subject.

A taboo that blocks a boon

So the average person doesn't like discussing their finances, but you think that business owners would be more savvy.

A CCH survey of SMEs found that only 26 per cent of those surveyed considered a failure to seek financial advice as a reason for businesses going bankrupt. On the other hand, they were far more talkative with their stomach, with 70 per cent of SMEs relying on their "gut instinct" more than any kind of professional advice.

The real issue is that talking about your finances to a trained professional can boost your business to the next level. In the same survey that found the money taboo, ME asked about the level of management that people who actually discussed their financial situation. As you can imagine, 80 per cent of people who liked talking about money actively managed their capital.

This sort of active management is the first step to taking full control of your finances and continuing in your business development.

Light at the end of the tunnel

There is some good news, however. Australians seem to slowly be changing their attitudes towards discussing their money worries, as ME Bank found that more than half of those in Gen Y were more likely to openly discuss their money situation. 

But what about right now? Another CCH survey in response to SMEs refusing financial advice asked accountants about their opinion. Overwhelmingly, the financial professionals said that "poor business models" were to blame for SME failure. 

So who are you going to trust? Your gut, or your accountant? Don't be a slave to social rules and take the time to contact the business development and wealth management consultants at Wilson Porter today.