Are You Ready for the End of Financial Year? Here’s Why It Matters More Than Ever
The End of the Financial Year (EOFY) is here, and for many small business owners, it can feel like a race against time. The stress of sorting through receipts, chasing invoices, and ensuring every expense is accounted for can be overwhelming. Add in the pressure of tax obligations, ATO compliance, and the looming 30 June deadline, and it’s no wonder EOFY is one of the most stressful times of the tax year.
But what if you could turn this time into an opportunity? What if, instead of dreading your tax return, you could use this moment to claim deductions, reduce your tax liability, and set your business up for greater financial success in the year ahead?
At Oyster Hub, we believe EOFY shouldn’t be about stress—it should be about maximising your returns and making your money work smarter. That’s why we’ve created the ultimate End of Financial Year checklist to help you organise your financial records, manage income and expenses, and ensure you don’t leave any tax deductions on the table. Whether you’re lodging your return yourself or working with a registered tax agent, this guide will walk you through everything you need to know to stay compliant and make the most of this tax time.
Let’s dive in and take the stress out of EOFY, so you can focus on growing your business instead of worrying about your numbers.
What Is the End of the Financial Year and Why Is It Important?
The End of the Financial Year (EOFY) in Australia falls on 30 June each year. This marks the official closing of the tax year, which means all businesses and individuals must finalise their income and expenses for reporting purposes. From an accounting and taxation perspective, this period is crucial because it determines how much tax you owe—or how much you can claim back through tax deductions.
For small business owners, EOFY isn’t just about paying taxes—it’s about maximising returns and ensuring financial stability. Proper planning can help you:
- Minimise your tax liability by taking advantage of eligible deductions.
- Ensure compliance with Australian Taxation Office (ATO) regulations to avoid penalties.
- Improve cash flow and plan better for the year ahead.
- Organise financial records for accurate tax return preparation.
1. Review Your Business Income & Expenses
t the heart of any EOFY checklist is a thorough review of your business income and expenses. Ensuring your financial records are accurate is critical, as any errors could lead to tax miscalculations, penalties, or missed opportunities for tax deductions.
Check your income records: Verify that all revenue from sales, services, and other income streams has been accounted for correctly. This includes outstanding invoices, deposits, and additional income sources that should be reported to the ATO.
Review your expenses: Expenses incurred for your business throughout the tax year may be tax-deductible. These include office supplies, equipment purchases, marketing costs, travel, and utilities. Organising these records now can help maximise your tax return.
2. Organise Your Financial Records
Keeping your financial records in order is essential for a seamless EOFY process. Poor record-keeping can lead to missing deductions, delayed tax return lodgement, and potential ATO audits.
Ensure you have all invoices and receipts: Digital record-keeping is recommended to avoid lost paperwork. Cloud-based accounting software like Xero, MYOB, or QuickBooks can help streamline this process.
Reconcile bank statements: Cross-check your transactions with your financial statements to ensure accuracy in reporting income and expenses.
Review your payroll records: If you have employees, ensure that all payroll transactions align with Single Touch Payroll (STP) requirements.
3. Lodge Your Tax Return on Time
One of the biggest EOFY responsibilities is ensuring your tax return is lodged correctly and on time. Failing to do so can result in penalties and unnecessary stress.
Check your due dates: The deadline for most small business owners is 31 October, but if you use a registered tax agent, you may receive an extension.
Ensure your taxable income is correct: Your taxable income includes all revenue minus allowable deductions. Overestimating or underreporting can result in ATO scrutiny.
Review withholding tax obligations: If you employ staff, ensure you have met all PAYG withholding requirements.
4. Superannuation & Employee Contributions
Employers must meet their superannuation obligations before 30 June to ensure compliance with ATO regulations. This includes making Super Guarantee (SG) contributions for employees on time.
Check payment deadlines: Superannuation payments must be made by the end of the financial year to be counted as a deductible expense.
Ensure contributions are correct: The SG rate for the tax year should be applied accurately to avoid non-compliance penalties.
5. Ensure GST & BAS Compliance
If your business is GST-registered, it’s important to ensure all GST obligations are met before EOFY. This includes submitting Business Activity Statements (BAS) and ensuring accurate GST reporting.
Verify BAS lodgement: Check that all quarterly or annual BAS statements have been lodged correctly.
Reconcile GST payments: Ensure that all GST collected and paid aligns with your records to prevent discrepancies.
Preparing for the Year Ahead
Setting Financial Goals and Improving Cash Flow Management
The end of the financial year (EOFY) is the perfect time for small business owners to reflect on their financial performance and set new goals for the year ahead. A strong financial strategy starts with a clear vision—assessing revenue trends, identifying growth opportunities, and streamlining expenses to improve profitability. Whether your goal is to increase sales, reduce operating costs, or expand your business, setting measurable objectives ensures you stay on track throughout the next tax year.
One of the most critical aspects of financial planning is cash flow management. Poor cash flow can hinder business growth and create challenges when meeting tax obligations or paying suppliers. To maintain a healthy financial position, businesses should regularly monitor their income and expenses, establish a budget, and implement strategies such as early invoicing, expense tracking, and setting aside funds for ATO liabilities. Proactively managing cash flow reduces financial stress and allows businesses to make informed decisions that drive long-term success.
Tax Planning Strategies for the Next Tax Year
Proactive tax planning can significantly impact a business’s financial health, helping to lower tax liability and maximise deductions. One effective strategy is prepaying expenses—business owners can reduce their taxable income by making advance payments on items such as office rent, insurance, or professional services before 30 June. Additionally, reviewing and updating depreciation schedules ensures that all eligible business assets are correctly accounted for when claiming tax deductions.
Another key tax planning strategy is making superannuation contributions. Contributing additional funds to superannuation before the EOFY deadline can provide tax benefits while helping business owners and employees secure their financial future. Additionally, reviewing your business structure can lead to potential tax advantages. For example, transitioning from a sole trader to a company or trust could offer better tax flexibility. Consulting an accountant ensures businesses implement the most effective tax strategies tailored to their specific needs.
How Oyster Hub Can Help
Navigating the end of financial year (EOFY) can be complex and time-consuming, but Oyster Hub is here to help. Our team of experts ensures that your business stays compliant with ATO regulations while optimising tax deductions and keeping your financial records in order. Whether you need assistance with lodging your tax return, managing superannuation, or understanding your tax obligations, we provide tailored solutions to help you meet EOFY deadlines with confidence. By working with a registered tax professional, you can avoid costly mistakes and take advantage of every opportunity to reduce your tax liability.
At Oyster Hub, we do more than just handle EOFY paperwork—we help businesses plan for long-term financial success. Our team offers strategic guidance on improving cash flow, structuring your business income efficiently, and preparing for the year ahead. Whether you’re a small business owner looking to claim every eligible tax deduction or simply want to streamline your financial processes, we’re here to support you. Book a consultation today and let Oyster Hub take the stress out of EOFY so you can focus on growing your business!
