Businesses in Australia need to finalise their financial records and meet tax requirements while preparing for the upcoming year’s objectives as EOFY approaches. The EOFY process guarantees regulatory compliance and allows for evaluating financial health while creating strategic plans and discovering growth opportunities.
1. Reconcile All Financial Accounts
Begin by matching all financial accounts, such as bank accounts, credit cards and loans, to ensure they are reconciled. You need to compare transactions recorded in your accounting software against the transactions listed in your bank statements. Through reconciliation, businesses can identify discrepancies and fraudulent activity that may lead to reporting and auditing problems when ignored.
Checklist:
- Reconcile all bank and credit card accounts
- Confirm loan balances with lenders
- Examine and correct any items that remain unresolved or do not match
2. Review Accounts Payable and Receivable
Maintaining precise records for accounts payable and accounts receivable remains essential to ensure compliance and cash flow management. Follow up on all remaining invoices and properly account for liabilities.
Checklist:
- Chase overdue customer payments
- Pay any outstanding supplier invoices
- Document and eliminate bad debts when needed
- Review credit terms with customers and suppliers
3. Conduct a Stocktake (If Applicable)
Product-based businesses require a stocktake procedure to establish the value of their closing inventory. The inventory valuation determines your cost of goods sold and taxable income. The process may reveal stock that has become obsolete or damaged, which needs to be written off.
Checklist:
- Perform a physical inventory count before the end of June 30
- Write off any obsolete or unsaleable stock
- Make sure your physical inventory matches the inventory records kept in your system.
4. Review Fixed Assets and Depreciation
Your asset register should reflect current data, and all depreciation entries need to show accurate calculations. Proper application of depreciation methods and rates helps decrease taxable income.
Checklist:
- Update your fixed asset register
- Record all assets that have been sold or disposed of, and those that are no longer being used
- Check the calculations and application of depreciation to confirm they are accurate
- Consider instant asset write-off provisions where applicable
- Lease accounting according to AASB 16, if applicable, as this will affect the depreciation and lease expenses.
5. Prepare and Verify Payroll Information
The end of the financial year demands a thorough review of payroll systems to ensure Superannuation Guarantee compliance while finalising Income Statements through Single Touch Payroll (STP).
Checklist:
- Perform reconciliation of all payroll accounts, which include wages, PAYG withholding and superannuation deposits.
- Ensure final superannuation payments are made prior to the due date to secure your deduction claim.
6. Gather and Organise Financial Documents
Your accountant or advisor requires all essential financial documents to be collected together for preparing your tax return and financial statements.
Checklist:
- Profit & Loss and Balance Sheet reports
- General ledger and trial balance
- Bank and credit card statements
- Loan agreements
7. Review Business Performance and KPIs
The EOFY represents both a regulatory requirement and a strategic evaluation point. Now is the moment to evaluate your company’s financial results by comparing actual performance to budgeted figures and establishing future financial objectives.
Checklist:
- Review key financial ratios (e.g. profit margin, current ratio)
- Compare actual performance against budgets or forecasts
- Assess cash flow health
- Establish financial goals and targets for the upcoming financial year.
Expert business advisors from Calibre deliver substantial value by assisting you in making sense of data while spotting inefficiencies and developing strategic plans.
8. Assess Tax Planning Opportunities
You can still implement tax planning strategies before 30 June to benefit your business. Qualified advisors help businesses minimise taxes while strengthening their financial standing.
Checklist:
- You should evaluate whether to make advance payments for fixed expenses such as rent, insurance premiums or subscription fees.
- Determine whether any income can be postponed until the following financial year.
- Make deductible superannuation contributions (within caps)
- Review bad debts, obsolete stock, and write-offs
9. Regularly verify that your ATO compliance and lodgements remain current.
Stay clear of financial penalties and interest by keeping all Australian Taxation Office requirements current. Your obligations to the ATO also consist of submitting activity statements together with tax returns and superannuation payments.
Checklist:
- Lodge outstanding BAS or PAYG instalments
- Ensure STP reporting is finalised
- Confirm superannuation contributions are submitted before deadlines
- Prepare for any upcoming tax payments
10. Engage Professional Support Where Needed
The EOFY represents a challenging time, particularly for business owners who must maintain operations while meeting compliance requirements. By using the expertise of professionals such as Calibre Business Advisory, businesses can make their processes more efficient while avoiding missed details.
Business owners benefit from hiring business advisors or accounting professionals through improved time management and reduced administrative stress.
- Save time and reduce administrative stress
- Gain access to accurate, timely financial reporting
- Maintain consistent adherence to intricate tax regulations and accounting practices
- Receive expert guidance on strategic decisions
- Optimise cash flow, profitability, and long-term planning
Sole traders and partnerships, as well as expanding SMEs, can receive custom EOFY assistance from Calibre’s accounting experts, so you can dedicate your efforts to business growth.
Thorough EOFY preparation leads to compliance achievement and provides important financial health insights for your business. Each step in the checklist, from reconciling accounts to strategic tax planning, helps ensure better operations and creates stronger growth foundations.
Through the professional help of a respected accounting firm in Sydney, alongside strategic guidance from veteran business advisors, you can turn EOFY into a success launchpad for the upcoming financial year rather than a stressful deadline. Prepare today to establish a better financial future for your business instead of waiting until the last minute.