EOFY Management: Preparing Your Business for a Smooth Financial Year-End

For many business owners, End of Financial Year (EOFY) feels like a race to the finish line—one filled with spreadsheets, receipts, and last-minute reconciliations. But EOFY should not be viewed as a scramble. Instead, it is an opportunity: to tidy up finances, gain insights, and set a strong foundation for the next year.

This article offers a strategic guide to EOFY management, helping businesses not only survive but thrive through the year-end process.

Understand the EOFY Timeline

Before diving into the to-do list, it is important to understand what EOFY involves:

1. Australia’s financial year runs from 1 July to 30 June.
2. Businesses are required to finalise financial reports, submit tax returns, and reconcile accounts.
3. Lodgement deadlines differ depending on business size, tax agent usage, and business structure (sole trader, company, etc.).

1. Starting preparations well before 30 June can avoid costly mistakes and last-minute stress.

Core Areas to Review

Successful EOFY management begins with reviewing all core financial areas. These include:

1. Reconciliation of Accounts

Ensure your bank accounts, credit cards, and loan balances match your accounting records. Check for:

• Duplicate transactions
• Missing invoices
• Unallocated payments

2. Accounts Receivable and Payable

Chase outstanding invoices (A/R) and ensure all bills and supplier payments (A/P) are up to date.

3. Payroll Finalisation

Confirm superannuation contributions are made on time and Single Touch Payroll (STP) finalisation declarations are lodged with the ATO.

4. Inventory and Asset Review

Conduct a stocktake, dispose of obsolete inventory, and update asset depreciation schedules.

Optimising Tax Outcomes

EOFY also presents a chance to optimise your tax position. Consult your accountant or bookkeeper about:

1. Prepaying expenses (e.g., rent, insurance, subscriptions)
2. Writing off bad debts
3. Maximising deductions (home office, vehicle, professional services)
4. Making superannuation contributions for tax benefits
5. Utilising temporary full expensing (if eligible) for asset purchases

1. Proper planning can reduce your tax liability and improve cash flow.

Prepare Financial Reports and Documents

Once your accounts are in order, generate the following reports:

1. Profit & Loss Statement
2. Balance Sheet
3. General Ledger
4. Cash Flow Statement

These reports not only aid in tax return preparation but also offer valuable insights for decision-making in the coming year.

Do not forget to keep all supporting documents (receipts, contracts, payment confirmations) securely filed—electronically or physically.

Post-EOFY Planning and Reflection

EOFY is not just about closing the books—it is also about Post-EOFY Planning and Reflection.

1. Review business performance: What worked well? What needs adjustment?
2. Set new financial goals for the upcoming year
3. Update budgets and forecasts based on current data
4. Reassess business structure and systems for greater efficiency

1. This is a great time to schedule a strategy session with your accountant or financial advisor.

Conclusion

EOFY does not have to be a frantic period filled with confusion and paperwork. With thoughtful preparation, it becomes a moment of clarity—a chance to take stock of your business, reward what is working, and correct what is not.

Good EOFY management equals better tax results, cleaner records, and stronger strategy. Treat it as a vital part of your business cycle, and you will set yourself up for a more profitable and organised year ahead.