The end of the financial year is one of the most important periods for Australian businesses. Occurring on 30 June each year, it is a regulatory requirement for all businesses operating in Australia. For many small business owners, tax time can be stressful due to the need to manage compliance, reporting, and financial responsibilities accurately.
Professional Support and Technology for Year-End Success
Engaging a registered tax agent or qualified tax professional can help you navigate your financial responsibilities, reduce administrative stress, and ensure adherence to government requirements. Professional support from experienced accountants or a trusted financial adviser allows business owners to focus on growth while making informed financial decisions.
Using AI-powered accounting software and other digital tools highlights the important role of technology in modern accounting. These solutions streamline tax preparation by automating data entry, reconciling accounts, and generating accurate financial reports efficiently. Technology-driven business taxation services help businesses remain compliant while saving valuable time during this busy period.
Strategic Planning and Official Resources for the New Financial Year
The year-end is also a good opportunity to review business performance, set financial objectives for the next financial year, and prepare by creating a budget and setting targets for sales, production, or services activities. For official information on tax changes, compliance, and deadlines, including payroll and superannuation deadlines, refer to the Australian Taxation Office website.
This guide walks you through a practical checklist—your financial year checklist end—so you can close your books confidently and focus on growth. The process guarantees regulatory compliance, allows for evaluating business finances and financial health through accurate business financial reporting Australia, and is a strategic evaluation point for businesses.
1. Review Your Financial Statements for Year-End
A thorough review of your financial statements is essential to understand your business’s financial health and ensure accuracy. This step helps identify discrepancies early and prepares you for reporting, including calculating your tax liability.
Start by ensuring your bank accounts and records accurately reflect the year’s activity:
Profit & Loss (Income Statement) – Verify all business income and expenses are coded correctly.
Balance Sheet – Check assets, liabilities, and equity balances, including capital gains tax implications.
Cash Flow Statement – Confirm inflows/outflows align with bank statements and receipts.
Run comparative reports with the previous year to spot anomalies.
Smart Digits provides bookkeeping and accounting services to help SMEs prepare year-end ready financials, including expert business taxation services.
2. Reconcile Bank and Credit Accounts for Compliance
Reconciling your bank and credit accounts ensures your records match actual transactions, preventing errors that could affect your individual tax return or business tax return. This process also helps detect any discrepancies or fraudulent activity.
Match all bank accounts, credit card, and PayPal accounts to closing bank statements.
Investigate unreconciled or uncleared items.
Confirm petty cash balances and update logs.
Reconciliation prevents errors flowing into tax returns or BAS and helps with PAYG instalments calculations.
3. Check Accounts Receivable
Managing accounts receivable is vital for maintaining healthy cash flow and accurate profit reporting. Timely follow-up on outstanding invoices and receipts helps reduce bad debts and improves liquidity.
Send reminders for overdue amounts.
Write off bad debts (after reasonable collection efforts) before year-end.
Review credit policies for the new year.
Consider early-payment incentives to improve collection speed.
4. Review Accounts Payable
Reviewing your accounts payable helps you manage outgoing cash flow effectively and take advantage of any discounts available. It also ensures your expenses are recorded correctly for tax purposes, including claiming deductions.
Pay bills that attract prompt-payment discounts or could be claimed as deductions this year. Delay non-urgent spend until after 30 June if cash is tight.
Ensure supplier details (ABN, GST registration) are up to date to avoid errors in BAS.
5. Stocktake and Asset Review with Instant Asset Write-Off Consideration
A physical stocktake and asset review provide an accurate valuation of your inventory and fixed assets, which is critical for financial reporting and tax calculations. This step also helps identify obsolete stock or assets needing write-off.
If you hold inventory:
Conduct a physical stocktake.
Write down obsolete or damaged stock to its net realisable value.
For assets, including motor vehicles:
Confirm purchases, sales, and disposals are recorded.
Review depreciation schedules and asset lives.
Take advantage of the instant asset write-off for eligible small business assets under the year-end asset write‑off Australia rules.
Need help valuing stock or assets? Talk to Smart Digits for support.
6. Superannuation Obligations
Meeting your superannuation contributions on time is crucial to avoid penalties and ensure deductions for the current financial year. This includes contributions for all eligible employees and contractors.
Pay super guarantee contributions by 28 June so they’re deductible in the current year.
Confirm contributions cover all eligible staff, including contractors deemed employees.
Reconcile clearing-house reports to payroll.
Note that the superannuation guarantee rate will increase to 12% from 1 July, so plan accordingly for the next financial year and meet all superannuation deadlines.
7. BAS and GST
Accurate BAS and GST reconciliation ensures your business complies with tax laws and avoids penalties. It also helps you claim correct credits and report liabilities accurately.
Reconcile GST collected and paid against the BAS ledger.
Ensure adjustments for bad debts, credit notes, or capital purchases are posted.
Lodge your final BAS for the year promptly.
8. Payroll and Single Touch Payroll (STP) for Individual Tax Return Preparation
Finalising payroll and STP data on time is essential for compliance and to provide employees with accurate income statements for tax lodgement. This step also helps prevent errors in employee entitlements.
Finalise STP data by 14 July so employees’ income statements are tax-ready, ensuring full payroll compliance.
Check salary sacrifice, allowances, and termination payments are coded correctly.
Issue PAYG summaries only if you have “closely held” payees not reported through STP.
This process supports smooth individual tax return services for your employees and helps you meet your financial responsibilities efficiently.
9. Fringe Benefits Tax (FBT)
If your business provides fringe benefits, timely identification and reporting are necessary to meet FBT obligations and avoid penalties. Maintaining proper records supports compliance and accurate declarations.
If you provide perks such as cars, meals, or loans:
Identify reportable fringe benefits.
Prepare FBT declarations and lodge by 21 May (or later if using an agent).
Keep logbooks and records for vehicles.
10. Maximise Tax Deductions
Maximising your tax deductions can significantly reduce your taxable income and improve cash flow. Planning ahead allows you to take advantage of prepayments and instant asset write-offs.
Prepay expenses (e.g., rent, insurance) for up to 12 months prior to year-end.
Write off small assets immediately if under the instant asset write-off threshold.
Claim eligible home-office expenses (keep evidence).
Review R&D or innovation-related deductions.
Smart Digits can optimise your deductions and ensure compliance with government rules.
11. Review Loans and Financing
Reviewing your loans and financing arrangements helps manage interest costs and ensures compliance with tax rules, such as Division 7A for shareholder loans. Refinancing may improve cash flow.
Check director or shareholder loan balances for Division 7A compliance.
Assess interest rates and repayment schedules.
Consider refinancing high-interest debt.
12. Plan for the Next Financial Year
Setting clear objectives and budgets for the next financial year helps align your business strategy with financial goals. This planning supports growth and operational efficiency.
Set objectives and budgets:
Revenue targets
Cost-control measures
Staffing and training needs
Technology or process upgrades
Align plans with your strategic goals and available capital or fund.
Effective year-end financial planning ensures your business is ready for the challenges and opportunities ahead.
13. Back Up and Secure Records
Maintaining secure backups of your financial records protects your business from data loss and simplifies audits. Proper data security also safeguards sensitive information from cyber threats.
Archive electronic data (financial reports, contracts, invoices, receipts).
Keep secure offsite or cloud backups.
Limit access to sensitive files.
Good data security protects you from cyber threats and simplifies audits, supporting your record keeping.
14. Engage Your Accountant Early
Engaging your accountant or financial adviser early ensures sufficient time for tax planning and smooth handling of complex issues. Early communication helps you stay informed about regulatory changes and meet deadlines.
This busy period for accountants requires early contact to ensure:
Sufficient time for tax planning
Smooth handling of complex issues (e.g., capital gains tax, trust distributions)
Guidance on government changes found on official websites
Book a consultation with Smart Digits well before 30 June.
Additional Tips for Sole Traders and the Self Employed
Sole traders and self employed individuals should be particularly mindful of lodging their individual tax return on time and ensuring all business income and expenses are accurately reported. Keep detailed records of receipts, bank statements, and business finances to support your claims.
By following this australian business year end checklist, you can confidently manage your financial responsibilities, maximise claiming deductions, and prepare your business for the year ahead. Staying organised and informed throughout this period will ensure a smooth transition into the new financial year.
Frequently Asked Questions (FAQs)
What is the end of financial year (EOFY) in Australia?
The EOFY in Australia marks the end of the financial year on 30 June. It is a crucial period for businesses to finalise their financial records, lodge tax returns, and meet compliance requirements.
When is the deadline to lodge my tax return for the 2024–25 financial year?
The deadline for lodging the 2024–25 tax return is 31 October 2025 if you lodge it yourself. If you use a registered tax agent, you may have extended deadlines but must be on their client list by 31 October.
What are the key tax obligations I need to meet at EOFY?
Key tax obligations include finalising your business financial records, paying superannuation contributions by 30 June, lodging your Business Activity Statement (BAS), and completing Single Touch Payroll (STP) finalisation by 14 July.
How can I maximise deductions for my business at EOFY?
You can maximise deductions by prepaying eligible expenses, claiming instant asset write-offs for assets under the threshold, writing off bad debts, and keeping detailed records to substantiate your claims.
Why is reconciling bank and credit accounts important at EOFY?
Reconciling ensures your financial records match actual transactions, helps identify discrepancies or fraudulent activity, and ensures accurate reporting on tax returns and BAS lodgements.
What should I do if I have obsolete or damaged stock at year-end?
Conduct a physical stocktake and write down or write off obsolete or damaged stock to its net realisable value. This adjustment will reflect accurately in your financial reports and taxable income.
How does the superannuation guarantee rate change affect my business?
From 1 July 2025, the superannuation guarantee rate increases to 12%. You should plan for this change to ensure compliance and proper budgeting for employee super contributions.
When should I engage a registered tax agent for EOFY preparation?
It is advisable to engage a registered tax agent well before 30 June to allow sufficient time for tax planning, compliance checks, and to navigate any complex financial matters smoothly.
