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End of financial year (EOFY) has a way of creeping up. One moment business is running as usual and the next you’re trying to pull together receipts, invoices, payroll records and reports you haven’t thought about since last June.
The good news is, EOFY doesn’t need to be stressful. With a little planning and an understanding of what matters most, you can get through tax time easily and start the new financial year on solid ground.
With this guide for how to prepare for EOFY as a small business, you can get the guidance you need to save money at tax time, things to review at tax time and how to prepare for this busy time of year.
How to Save Money At Tax Time
The quickest way to legally reduce the amount of tax you pay is by making sure all of your eligible deductions are recorded properly. Most small businesses miss claims, not because they’re ineligible, but because the expense was never lodged or the receipt is gone. EOFY gives you a chance to sweep through the year and capture everything you’re entitled to.
Look closely at tools, equipment, software, business subscriptions, stock purchases, repairs, vehicles used for work, marketing expenses, training and memberships. Even small recurring expenses add up, and many are only claimable if supported by documentation. If you work from a home office, you may also be able to claim a portion of utilities, internet and workspace costs.Just make sure you have clear records that tie each expense back to business use throughout the year.
Super isn’t just about retirement planning. From a tax perspective, it can also play a strategic role at EOFY. Some businesses and individuals choose to make additional concessional contributions where appropriate, or take advantage of catch-up contributions if any unused caps from the previous year apply.
There’s two benefits to this. The first is for long-term wealth building and the other is potential tax advantages. This is something best reviewed with an accountant before 30 June, as timing often determines whether the contribution counts for the current year.
Tax time is also a smart time to consider whether new business assets are needed, not just for tax but productivity. Equipment upgrades, new tools, technology or machinery may be depreciable. Depending on current regulations, they may offer tax benefits when they are purchased before the end of the financial year.
However, the decision should never be tax-driven alone. Instead, consider whether the asset genuinely improves workflow, safety, efficiency or output, and then review how depreciation rules apply.
What to Review at Tax Time For a Better New Financial Year
End of financial year isn’t just an accounting deadline. It’s also a good time for reflection to make the next year better.
Cash flow tells the real story of a business, including periods of strain, times of growth, who your slow-paying customers are and seasonable revenue patterns. Reviewing all your bank statements and bookkeeping reports can reveal where your money bottlenecks, where surplus appears, and what systems need to be strengthened up. This information can help give you a better forecast for the year ahead to make planning easier and more accurate.
Not every invoice gets paid, and EOFY is the moment to face that reality clearly. If a debt is genuinely unrecoverable, and you have evidence to support this, writing it off before year-end may be appropriate for tax purposes. It’s also a chance to refine your debt management going into the near year.
Business costs can add up fast and without you even knowing. A subscription here, a platform trial there, extra insurance coverage from three years ago that no one remembers signing up for. EOFY is the perfect time to audit expenses line by line.
Remove what you don’t need, renegotiate where possible and consolidate tools where there are duplicates. Cutting waste doesn’t only help at tax time. It strengthens your bottom line every month.
How to Prepare For Tax Time (& Make Next EOFY Easier)
EOFY can be so much easier when you don’t leave everything to the last fortnight. Setting up a habit of reconciling accounts regularly, attaching receipts while they are fresh and making sure your payroll, PAYG and super are always up to date can help prevent a backlog and help you stop problems sooner.
Paper trails can go missing. Digital records don’t, well, as easily. Using accounting software and cloud storage means your invoices, receipts and payroll information is searchable, secure and accessible at any time. Automated reconciliation saves hours, and recurring expense tagging takes seconds instead of afternoons. It means you just have to review everything at EOFY, not build it all.
The most powerful decisions happen before EOFY, not after it. Scheduling time with your accountant ahead of 30 June makes sure you have time to discuss your super contributions, asset purchases, structure, cash flow strategy and tax planning while there’s still room to act. Advice after the deadline is valuable, but advice before is impactful.
If you’re looking for an accountant who gets the ins and outs, and knows how to make things simpler, talk to our team at Crest Accountants.
