As the end of the financial year approaches, it’s time to get everything in order before 30 June.

Whether you’re a sole trader, growing family business, or established enterprise, the end of financial year (EOFY) is an opportunity to tidy up your finances, improve your cash flow, review performance, and prepare for the year ahead.

And – get your tax done!

1. Reconcile Your Accounts

Before lodging anything with the ATO, ensure your bookkeeping is up to date.

This includes:

Reconciling bank accounts
Reviewing credit card transactions
Matching invoices and payments
Checking payroll records
Confirming superannuation payments

Clean records reduce the risk of errors and make tax time far less stressful.

2. Chase Outstanding Invoices

EOFY is the ideal time to review your accounts receivable.

Follow up overdue invoices and identify customers with unpaid balances. Improving collections before 30 June can strengthen your cash flow and reduce bad debts.

If you think that some debts are unlikely to be recovered, speak with your accountant about whether they may be written off before year-end.

3. Review Your Business Expenses

Go through your expenses carefully and ensure all your deductible business costs have been recorded.

Common deductible expenses may include:

Office supplies
Vehicle and travel expenses
Software subscriptions
Marketing costs
Insurance
Professional services
Equipment purchases

Keep receipts and supporting documentation organised in case the ATO wants you to prove your purchases. You should do this anyway and it’s easy to do with cloud based accounting software.

4. Consider Asset Purchases Before 30 June

Depending on current tax rules and your business structure, (consult with your accountant) purchasing eligible equipment or assets before EOFY can provide tax advantages.

This could include:

Computers and laptops
Office furniture
Machinery and tools
Vehicles
Technology upgrades

But don’t spend money just for the tax breaks. tax should never be the sole reason for making a purchase. Focus on assets that genuinely support your business operations and growth.

5. Finalise Payroll and Superannuation

Ensure employee payroll records are accurate and up to date.

You should also:

Reconcile wages and PAYG withholding
Review leave balances
Confirm STP reporting is correct
Pay employee superannuation on time

Remember that super contributions generally need to be received by the employee’s super fund before 30 June to be deductible this financial year.

6. Review Stock and Inventory

If your business carries inventory, conduct a stock take before EOFY.

This helps you identify:

Slow-moving stock
Damaged or obsolete inventory
Shrinkage issues
Opportunities to improve purchasing

Accurate inventory figures are essential for reliable financial reporting.

7. Check Your Business Structure

EOFY is a really good time to review whether your current business structure still suits your needs.

Business structures that once worked well for you when you started may no longer be the most tax-effective or asset-protective option.

This is particularly relevant for businesses considering:

Expansion
Hiring staff
Bringing in partners
Succession planning
Asset protection strategies

Professional advice, in the form of talking to your accountant, can help determine whether changes are a good idea.

8. Important Tax Changes and EOFY Considerations

While every business situation is different, several tax rules and compliance areas are particularly relevant for the current and upcoming financial years.

Instant Asset Write-Off

The instant asset write-off rules continue to change from year to year. Eligibility thresholds and timing requirements can vary depending on legislation passed by Parliament.

Businesses considering asset purchases before 30 June should seek advice early to confirm current eligibility and whether purchases need to be installed and ready for use before year-end.

Superannuation Guarantee Increases

The compulsory Superannuation Guarantee (SG) rate continues to increase gradually under legislated changes.

Businesses should ensure payroll systems are updated correctly for the new financial year to avoid underpayment issues and avoid problems with the ATO (or even penalties).

ATO Focus on Small Business Compliance

The ATO continues to increase its data matching and compliance activities – and it’s use of AI, particularly in areas such as:

Work-related expenses
GST reporting
Director loans
Cash flow reporting
Personal use of business assets
Contractor and employee classifications

Accurate record keeping is becoming more and more important for businesses of all sizes.

Single Touch Payroll (STP) Obligations

Single Touch Payroll reporting obligations remain an important compliance requirement for employers.

You should ensure payroll software is compliant and EOFY finalisation declarations are completed correctly.

Electric Vehicle and Technology Incentives

Recent years have seen expanded incentives and tax concessions relating to electric vehicles and technology investment.

Businesses considering vehicle upgrades or digital transformation projects may benefit from reviewing current concessions before making purchasing decisions. Consult with your accountant.

Interest Deductibility and Cash Flow Pressure

With higher interest rates continuing to affect many businesses, cash flow management remains a critical EOFY issue.

Businesses with loans or finance arrangements should review interest costs, debt structures, and repayment strategies as part of broader tax planning and budgeting discussions.

9. Prepare for Tax Planning

EOFY should involve more than simply lodging a tax return.

Effective tax planning may help you:

Manage taxable income
Improve cash flow
Plan for future investments
Avoid unexpected tax liabilities

The earlier you speak with your accountant, the more options are usually available before 30 June.

10. Review Business Performance

EOFY is also an opportunity to step back and assess the overall health of your business. You don’t have to do this but the end of the last FY is a good time to think about last year – and next year.

Consider:

Revenue growth
Profit margins
Rising costs
Cash flow trends
Key business risks
Goals for the next financial year

Good financial reporting is not just about compliance — it is giving you some really valuable information for better business decisions in the future.

11. Speak With Your Accountant Early

One of the biggest mistakes business owners make is leaving everything until late June or after the financial year has already ended.

Early preparation gives you a lot more flexibility, more planning opportunities and less stress.

An experienced accountant can help you:

Identify tax-saving opportunities
Improve record keeping
Review business performance
Ensure compliance obligations are met
Plan strategically for the new financial year

Final Thoughts

The end of the financial year doesn’t have to be overwhelming.

With the right preparation and some professional advice, tax time can be a valuable opportunity to strengthen your business financially and strategically.

If you’d like help preparing your business for EOFY, the team at Wealthpath Accountants can work with you to simplify, advise and provide practical accounting advice year-round.

So get organised and have great 26/27 financial year!

Proposed Tax Changes to Watch in the Next Financial Year

The Federal Government is currently reviewing some significant changes to Australia’s capital gains tax (CGT), with proposed reforms expected to affect investors, business owners and asset sales from 1 July 2027 onward if legislation passes Parliament.

The key proposal is to replace the current 50% CGT discount for individuals and trusts with an inflation-indexed system combined with a minimum 30% tax rate on capital gains. The proposed changes would apply broadly across shares, investment property, business assets, and other investments.

For small and medium businesses, the main concern is how these changes might affect:

The after-tax proceeds from selling a business

Business succession and retirement planning

Investor appetite for startups and growth businesses

Long-term investment decisions

Business restructuring strategies

At this stage, existing small business CGT concessions are expected to remain in place but various industry groups are lobbying for broader exemptions and higher eligibility thresholds and other changes.

So keep in mind that these measures are still proposed legislation and may change during consultation and parliamentary review. Businesses considering asset sales, succession planning, or major investments over the next few years should seek professional advice early to understand the potential implications.