January is when Q4 reviews land on the desk.

And often, advisers can see the issues before the client is ready to hear them.

Margins have tightened.

Cash flow feels stretched.

Compliance has slipped.

The numbers don’t quite reconcile with the story.

At this point, the real risk isn’t the data.

It’s what happens next – and how long everyone waits.

What Are the Most Common January Warning Signs Advisers See in SME Clients?

January tends to surface the same pressure points across many SMEs. These aren’t isolated issues – they’re patterns that usually point to bigger risk if left unchecked.

Financial and compliance signals

BAS and IAS lodgements slipping or being rushed with incomplete data
ATO arrears quietly growing, often explained away as “temporary timing issues”
Margins tightening despite stable or growing revenue
Cash flow forecasts that no longer match actual trading outcomes

Operational and governance breakdown

Financial reports that can’t be relied on with confidence
Rising debtors and slower collections
Suppliers shortening terms or moving the client to stop-credit
Banks requesting ad-hoc reporting or raising covenant concerns

Behavioural red flags from owners

Increased anxiety or frequent reactive calls
Avoidance of difficult conversations or delayed information
Decisions being driven by stress rather than data
Internal tension between directors or key stakeholders

Individually, these can seem manageable. Together, they usually signal a business losing control of its financial position.

What Often Helps in the Early Stages When These Signs Appear

When advisers notice these patterns early, a few simple adjustments often help create breathing room – both for the client and the adviser.

In my experience, it’s useful to:

Slow the conversation slightly, so decisions are anchored in facts rather than reassurance or optimism
Narrow the focus to the few things that really matter in the short term – cash position, ATO exposure, creditor pressure
Sense-check assumptions, especially where forecasts rely on rapid improvement
Acknowledge the moment with the client, framing it as a point to pause and get clarity rather than a crisis
Reflect on capacity, particularly when the situation starts to move beyond technical advice into solvency risk or heightened stress

None of this requires dramatic action. It’s simply about creating structure early, while there’s still flexibility.

When Might It Be Useful to Bring in Additional Support?

Some advisers tell me they use a simple internal check when things feel unsettled:

Are the numbers clear enough to support confident decisions?
Has the client’s behaviour or stress level shifted noticeably?
Would waiting likely improve the position, or quietly reduce options?

When more than one of those feels uncertain, that’s often when an external perspective can help – not to replace the adviser, but to stabilise the situation and share the load.

Why Early Support Can Ease Pressure for Everyone Involved

Handled calmly, early support doesn’t disrupt relationships.

It often:

Gives clients a neutral voice they can hear
Reduces emotional pressure on the adviser
Creates a clearer, shared plan
Preserves optionality for the business

That’s typically where I’m brought in – to assess, steady things, and help advisers and owners regain clarity without unnecessary noise.

What Is the Best Next Step for Advisers Managing At-Risk Clients in January?

January is the best window you’ll get all year to intervene early – before urgency replaces choice.

If this pattern feels familiar, I’m happy to map the first steps with you or provide a quick readiness snapshot for a specific client.

Book a call here: https://calendly.com/andrew-asadvisory