End-of-Financial-Year Checklist for Businesses

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End-of-Financial-Year Checklist for Businesses

As the financial year comes to a close, it’s essential for businesses to ensure that their financial affairs
are accurate, compliant, and strategically aligned. Taking the right steps now not only simplifies the
tax preparation process but also lays a strong foundation for the year ahead.

Below is an end-of-financial-year (EOFY) checklist to support your business through this critical period:

1. Organize Financial Records

Begin by compiling and organizing all financial documentation. Ensure that invoices, receipts, bank statements, and expense records are complete, accurate, and properly categorized. This will provide a clear financial picture and facilitate efficient tax reporting.

 

2. Review Accounts Payable and Receivable

Examine outstanding invoices and ensure timely collection of receivables. Ensure all outstanding invoices are followed up on and all due bills are paid. This helps maintain a healthy cash flow and prevents accounting discrepancies.

 

3. Conduct a Stocktake

For businesses managing inventory, a stocktake is essential. Compare physical stock levels with accounting records to identify and reconcile any variances to ensure accurate reporting.

 

4. Reconcile Bank Accounts

Bank reconciliations are critical to verifying that recorded transactions match bank activity. Investigate and resolve any discrepancies to ensure accurate financial reporting.

 

5. Finalise Payroll and Single Touch Payroll (STP) Reporting

Ensure all wages, allowances, and superannuation payments are correctly reported through your STP system. All income statements for employees will need to be finalised and lodged for employee by the 14^th of July via STP.

 

6. Ensure Superannuation Is Paid On Time

To claim a deduction this financial year, super contributions must be received by the fund by 30 June.
Allow processing time – most super clearing houses recommend submitting payments by mid to late June.

 

7. Analyse Financial Performance

Review key financial statements — including the profit and loss statement, balance sheet, and cash flow statement. Assess overall business performance, identify trends, and highlight areas for improvement
to inform next year’s planning.

 

8. Review Depreciation and Asset Write-Offs

Evaluate business assets for depreciation and potential write-offs. Proper asset management can
lead to significant tax benefits, so review all asset schedules for accuracy and compliance.

 

9. Prepare for Tax Obligations

Assemble all relevant financial documents for your accountant or tax advisor.
Review potential deductions, assess tax liabilities, and confirm compliance with current legislation.

 

10. Plan for the New Financial Year

Leverage insights from your EOFY analysis to set strategic goals and create a budget for the upcoming year. Proactive financial planning enables better resource allocation and supports long-term growth.

 

Conclusion

The EOFY period presents both a challenge and an opportunity for SMEs. By approaching it with structure and strategy, your business can enter the new financial year better organized and primed for success.

If you require assistance with EOFY processes, our expert accounting team is here to help. Contact us today to discover how we can support your financial goals and optimize your business operations.