As the end of the financial year (EOFY) approaches on June 30, small business owners across Australia need to prepare for one of the most important financial checkpoints of the year. Whether you’re a sole trader, partnership, or small company, getting organised now can help you stay compliant, maximise deductions, and reduce stress.
Here are 7 EOFY best practices every small business should follow:
1. Reconcile Your Accounts
Make sure your bookkeeping is up to date. This includes reconciling bank accounts, credit cards, and business loan statements. Verify all income and expenses have been recorded accurately, and double-check GST and PAYG withholdings.
Tip: Use accounting software like Xero, MYOB, or QuickBooks to streamline this process.
2. Review and Organise Your Records
Gather and organise all financial documents including:
- Invoices and receipts
- Payroll records
- BAS lodgements
- Superannuation contributions
- Asset purchases
Having clear records not only makes tax time easier but also protects you in case of an ATO audit.
3. Maximise Deductions
Review your expenses and see if there are any tax-deductible purchases you can make before June 30. Common deductions include:
- Office supplies
- Equipment or technology
- Motor vehicle expenses
- Marketing and advertising
- Home office costs
Don’t forget the instant asset write-off for eligible purchases (subject to current ATO thresholds).
4. Pay Super on Time
Superannuation contributions must be paid by June 30 to be tax-deductible in this financial year. Delayed payments may not be claimable until next year, so don’t leave it until the last minute.
5. Conduct a Stocktake (If Applicable)
If your business holds inventory, a stocktake is essential at EOFY. Record current stock levels, write off obsolete stock, and adjust your accounting records accordingly.
6. Review Your Business Structure
The EOFY is a good time to assess whether your current structure is still the best fit for your business. You may benefit from moving from a sole trader to a company or trust to improve tax efficiency.
Speak to a registered tax agent or accountant about what’s best for your situation.
7. Plan for the Year Ahead
Once you’ve closed out the year, set financial goals and budgets for the next. Consider:
- Cash flow forecasting
- Pricing adjustments
- Hiring or expanding
- Tax planning strategies
Need Help with EOFY?
EOFY can be overwhelming, but you don’t have to do it alone. At Taxvisory, we specialise in small business tax compliance, bookkeeping, BAS lodgements, and strategic planning to set you up for success.
📞 Contact us today to book your EOFY review and take the stress out of tax time.
