Navigate the EOFY with Ease
With the right approach and timely reminders, you can navigate the EOFY with ease.
As the End of Financial Year (EOFY) approaches, businesses and professionals alike feel the pressure to wrap up financials, meet compliance deadlines, and prepare for the year ahead.
From reconciling transactions to ensuring payroll accuracy and understanding tax obligations, it’s certainly easy to feel overwhelmed by everything that needs to be done.
In this blog, we’ll walk you through essential EOFY reminders to help you stay organised, compliant, as well as in control as the financial year closes.
Are you ready to keep your business on track and finish the financial year strong?
The Value of Preparing for the EOFY
Viewing the EOFY as just another compliance task means missing out on a valuable opportunity. A well-managed EOFY does more than simply meet ATO requirements. When you’re well-prepared, EOFY becomes less stressful and more strategic.
Instead of rushing to find documents or fix last-minute errors, you can finalise your reports with confidence. This preparation allows you to claim all eligible deductions, avoid mistakes, and stay fully compliant. This significantly reduces the risk of penalties or audits.
Beyond meeting obligations, EOFY preparation gives you clarity. It provides a clear snapshot of the financial performance of your business, which is essential for making informed decisions. By reviewing income and expenses, you can improve cash flow, identify savings, and fine-tune your financial strategy.
Reminders to Navigate the EOFY with Ease
These are the essential things you need to do so you can navigate the EOFY with ease:
• Maintain Accurate and Organised Records
Good record-keeping is indeed the foundation of effective tax planning. Foremost, accurate, up-to-date bookkeeping makes it easier to identify deductions, substantiate claims, and lodge accurate returns. It can also help prevent potential audits and ensure compliance with tax laws.
• Review Financial Records and Transactions
Maintaining clean and up-to-date records is also essential for accurate financial reporting. Begin by thoroughly reconciling your bank statements, credit card transactions, and accounting records. You must also ensure that all income and expenses for the financial year have been accurately documented. This includes supplier invoices, customer payments, interest income, and any business-related purchases or operating costs.
• Organise and Finalise Payroll
EOFY is a crucial time to review and complete all payroll-related responsibilities. Check the accuracy of employee payments, tax withholdings, as well as leave entitlements. Employees who are no longer affiliated in your business must also be properly documented and superannuation contributions must be paid by the required deadlines. Additionally, you’ll need to finalise your Single Touch Payroll (STP) reporting for the financial year by 14th of July.
• Claim All Eligible Tax Deductions and Offsets
Navigate the EOFY with ease by ensuring you claim all eligible tax deductions and offsets. Common business deductions include operating expenses such as rent, utilities, and software subscriptions, as well as asset depreciation, work-related travel, and home office expenses (if applicable). In addition to deductions, your business may qualify for small business tax offsets or other government incentives designed to ease financial pressure.
• Complete a Stocktake and Asset Review
If your business handles physical goods, the EOFY is the ideal time to conduct a thorough stocktake. Record current inventory levels, write off any obsolete, damaged, or unsellable stock, and update your records to reflect accurate values. This process will show the accuracy of your trading stock value for tax purposes and a clear picture of your inventory.
In addition, review your fixed asset register. Write off any assets no longer in use and update your depreciation schedules to reflect current asset values. These adjustments will significantly influence your tax position and provide a more accurate assessment of your business’s financial health.
• Confirm Superannuation Contributions
To claim tax deductions for superannuation payments in the current financial year, contributions must be received by the super fund by 30 June, not just sent. Because of this, you have to plan your payment cut-off dates well in advance to account for potential processing delays and ensure timely receipt. Furthermore, review any recent changes to contribution caps and verify that you’re fully compliant with your Superannuation Guarantee (SG) obligations.
• Lodge BAS and Other EOFY Compliance Documents
Ensure your Business Activity Statements (BAS) are complete, accurate, and lodged by their due dates to avoid penalties. Depending on your business structure and activities, you may also need to lodge the following:
- PAYG withholding summaries
- Fringe Benefits Tax (FBT) returns, which are due by 21 May if lodging manually, or by 25 June if lodged electronically through a registered tax agent
- Taxable Payments Annual Report (TPAR), if applicable to your industry
Nevertheless, it’s important to plan ahead and gather all necessary information early to meet these deadlines. Missing these deadlines can result in interest charges and penalties.
Tips to Avoid Last-Minute Stress
Staying organised is vital to navigate the EOFY with ease and ensure a smooth and stress-free experience. Here are some practical strategies to keep you on track:
• Use Checklists and Keep Accurate Record
Use detailed checklists to track deadlines, requirements, and key steps you need to take. A well-structured checklist helps ensure that nothing is overlooked and allows you to approach EOFY in a more organised and efficient manner.
In addition, scan and securely store receipts, invoices, and important documents throughout the year. Maintaining accurate, digital records reduces the risk of last-minute stress and supports smoother, faster lodgment when it’s time to finalise your financials.
• Set Key Deadline Reminders
Set calendar reminders for important dates like 30 June (EOFY), 14 July (Single Touch Payroll finalisation), 28 July (super guarantee payments), and 31 October (tax return lodgment). Doing this will, without doubt, help ensure you stay on top of your financial obligations and avoid any penalties or late fees.
• Maintain Regular Communication
Stay in touch with your accountant or financial advisor to keep up with your financial obligations and receive timely advice. Aside from that, partnering with a qualified tax professional can help ensure compliance and maximise your eligible deductions.
• Automate Routine Processes
Automating routine tasks such as payroll, invoicing, and recordkeeping can also reduce manual workload, save time, and minimise the risk of errors. By streamlining these processes, you free up valuable resources and ensure greater accuracy in your financial reporting. You can also store all financial records online so you can access important documents anytime, from anywhere.
By adopting these habits, you’ll reduce stress, improve accuracy, and make your EOFY process far more manageable.
Beyond EOFY: Plan Ahead for Growth and Success
EOFY presents a valuable opportunity to plan for the future. Use this time to reflect on the performance of your business over the past year as well as set new financial and operational goals. In addition, you can evaluate your cash flow and budgeting strategies. You can also identify areas where new systems or tools could improve efficiency.
At Bodeccia, we see EOFY as the perfect time to set a milestone for a broader financial journey. Our support goes beyond tax season to help you develop ongoing financial strategies tailored to your goals. We also work with you to maximise tax benefits, ensure year-round compliance, and provide expert guidance on business restructuring, cash flow forecasting, and digital transformation.
By partnering with Bodeccia, you’ll gain a proactive approach that eliminates last-minute stress and sets you up for sustainable growth. With our support, you’re not just ready for EOFY, you’re ready for long-term success.
