The End of Financial Year Checklist For Business Owners
Here's everything worth getting sorted before 30 June, from your tax planning conversation to your accounts, expenses, stocktake and trust resolutions. Work through the list below, then take a look at planning for the year ahead.
30 June isn't sneaking up on you, but it does have a habit of arriving before you've done everything you meant to do. Here's what our team of business accountants wants every business owner to have sorted in the lead up.
What Should You Do Before 30 June?
Talk to your accountant, and act on what you discuss
A good tax planning conversation sets up everything that follows, so the real value comes from doing something with it. If you haven't had that conversation yet, this is the week to make it happen.Chase outstanding invoices and pay your suppliers
Money you're owed that hasn't landed yet, and expenses you've incurred but haven't paid, both shape how your year actually looks on paper. Get it collected, get it paid, get it reconciled.Review and reconcile your accounts
Your books should reflect what really happened this year. If something looks off, you want to be the one who finds it first.Take a proper look at your expenses
Subscriptions, software, memberships, the bits and pieces that quietly renew every month. EOFY is a natural moment to ask whether each one is still earning its place.See whether the instant asset write-off works for you
If there's equipment or an asset you've been weighing up, it's worth understanding how the instant asset write-off scheme applies before 30 June, rather than after.Do a stocktake if you carry inventory
Obsolete or out of date stock can reduce your taxable income, but only when it's been identified and written off properly. Arrange your stocktake for 30 June so it's done right.Sort your trust resolutions
If you operate through a trust, your resolutions need to be prepared in line with your tax plan and signed before June 30. Worth getting on top of early, because the deadline is firm.Check your Director's Loan account
If you've drawn money out of your company during the year, it's worth making sure it's been handled correctly. A directors loan that isn't structured properly can create a Division 7A issue, and that's a far easier thing to manage now than to unwind later.Get your payroll reporting lined up
Single Touch Payroll (STP), Payroll Tax Annual Lodgements, TPAR. Know what applies to your business and make sure it's on someone's list.Confirm your tax agent is registered with the Tax Practitioners Board
A simple one to tick off, and worth knowing for certain.
How to Set Your Business Up For The New Financial Year
The end of one year is a good moment to lift your eyes and think about the next one.
Before the new year fills up, give yourself the space to:
Set clear goals for the next 12 months, and decide how you'll keep track of them
Build a budget that reflects what you actually want to achieve this year
Take an honest look at whether your current structure, systems and support are set up to get you there
A word on that budget. A budget built in the quiet before July is worth far more than one cobbled together in October when you're already in the thick of it. Start with where you want the year to land, then work back to what that asks of you month by month: the revenue you're aiming for, the costs you can see coming, the months that tend to run tight. A budget you've actually thought through becomes something you can steer by all year, rather than a document you set once and forget.
EOFY Questions Business Owners Ask
What happens if I take money out of my company?
If you take money out and it isn't paid as a wage or a dividend, or set up as a complying loan, the ATO can treat it as a Division 7A deemed dividend and tax it at your marginal rate. Getting the structure right before year end keeps it simple, so it's worth checking your directors loan account before 30 June.
Do I need to do a stocktake at the end of financial year?
If your business holds trading stock, you generally need to account for it at year end. A stocktake on 30 June lets you identify obsolete or out of date items and write them off, which reduces your taxable income when it's documented properly.
When do trust resolutions need to be done?
If you run your business through a trust, your trustee resolutions on how income is distributed generally need to be made and signed before 30 June. Prepare them in line with your tax plan well ahead of the deadline, because the timing is firm.
Take Your Business Into The New Financial Year Confidently
We love helping business owners step into a new financial year with clarity and confidence, ready to make smart decisions and grow a business they genuinely enjoy running.
