Your EOFY Checklist: 10 Things Every Australian Small Business Should Do Before June 30
End of financial year doesn't have to be chaotic. Use this checklist to get your business in order before June 30 and start the new financial year clean.
June 30 has a way of sneaking up on you. One day you’re thinking “I’ve got plenty of time,” and the next you’re scrambling to reconcile three months of bank transactions while your accountant sends increasingly pointed emails.
It doesn’t have to be this way. Here’s a practical checklist to work through in the weeks leading up to the end of the financial year.
1. Reconcile all bank accounts
Go through every bank account and credit card connected to your business and make sure every transaction is categorised and reconciled. This is the foundation of everything else — your reports, your tax return, your BAS — and it all depends on clean, complete bank reconciliation.
If you’ve been keeping up with this throughout the year, it should take an hour or two at most. If you haven’t, this is the item that will take the longest.
2. Chase outstanding invoices
Any revenue you’ve earned but haven’t collected is still taxable income (if you’re using accrual accounting). More importantly, it’s money that’s rightfully yours. Send reminders on all overdue invoices. For anything significantly overdue, consider whether you need to write it off as a bad debt — which has tax implications your accountant should advise on.
3. Review and process all outstanding bills
Make sure all supplier invoices and bills have been entered into your system, even if you haven’t paid them yet. This ensures your expenses are recorded in the correct financial year and that your profit and loss report is accurate.
Check for any bills that might have been paid but not recorded, or recorded but categorised incorrectly.
4. Review your asset register
If you’ve bought any equipment, vehicles, or other assets during the year, make sure they’re recorded correctly. Check that depreciation is being calculated appropriately.
This is also a good time to review the instant asset write-off threshold. As of the current financial year, eligible businesses can immediately deduct the full cost of eligible assets up to the applicable threshold. Your accountant can confirm the current rules and whether any of your purchases qualify.
5. Prepare your payroll
If you have employees, make sure all wages, super contributions, and PAYG withholding are up to date. Super for the June quarter needs to be paid by July 28 to be deductible in the current financial year — but it’s safer to pay it before June 30 to be certain.
Ensure all employee records are current and that you’re ready to issue payment summaries (or that your software handles Single Touch Payroll reporting, which has largely replaced manual payment summaries).
6. Review your superannuation
Beyond employee super, check your own super contributions if you’re a sole trader or director. Personal super contributions can be a legitimate tax deduction, but there are caps and rules. Confirm with your accountant what makes sense for your situation.
7. Stocktake (if applicable)
If your business holds physical inventory, you’ll need to do a stocktake as close to June 30 as practical. The value of your stock on hand affects your profit calculation and therefore your tax liability.
8. Review and categorise all expenses
Go through your expense categories and make sure everything is in the right place. Miscategorised expenses can lead to overpaying or underpaying tax. Common problem areas include meals and entertainment (only 50% deductible in many cases), personal vs. business use of vehicles, and home office expenses.
9. Gather supporting documentation
Make sure you have receipts or records for all deductions you plan to claim. The ATO can ask for substantiation at any time, and “I’m pretty sure I spent that” isn’t going to cut it.
Digital records are fine — in fact, they’re preferred. If you’ve been photographing receipts and attaching them to transactions in your accounting software throughout the year, you’re already in good shape.
10. Meet with your accountant
Schedule a pre-EOFY meeting with your accountant. They can advise on any last-minute strategies to optimise your tax position — whether that’s prepaying expenses, timing asset purchases, or adjusting super contributions.
Don’t leave this to July. By then, the financial year has closed and your options are limited.
Start next year right
The best EOFY preparation is a year of consistent bookkeeping. If this year’s process was painful, use it as motivation to set up better systems for the year ahead. Connect your bank feeds, categorise transactions weekly, and review your position monthly.
Next June, you’ll thank yourself.