05 May 2026
For SMEs, EOFY can often feel like another compliance exercise. For many business owners, it comes at a busy time of year, with pressure building as the 30 June deadline approaches.
At the same time, the right preparation now can make a meaningful difference down the track, particularly when it comes to tax efficiency and overall financial positioning. Once the financial year closes, most of the decisions that affect your tax position are locked in.
This end of year financial checklist for small business is designed to help SMEs make the most of that window, so you can approach EOFY as an opportunity to strengthen your position going into the new financial year.
Step 1: Get your financial foundations right
Start with your numbers. If they’re incomplete or inaccurate, it becomes difficult to assess your position or make informed decisions. As Ryan Brown, Director at AR & B Advisors, says: “You can't do the planning until the data is right.”
Make sure your profit and loss, balance sheet and cash flow statements are up to date and reflect the true position of your business. It’s also important to review transactions, identify any bad debts that are unlikely to be recovered and assess whether any stock has lost value.
If your books are behind, it’s worth addressing this first. Clear and reliable data provides the foundation for every other decision at EOFY and supports more effective cash flow planning and strategic decision-making into the year ahead.
Step 2: Maximise your deductions
With your financial information in order, the next step is to consider timing. Expenses incurred before 30 June can influence your tax position for the current year and contribute to better efficiency in taxation.
Maximise deductions by bringing forward expenses. This includes prepaid expenses, such as insurance or software subscriptions, where timing can be adjusted.
Step 3: Don’t miss the super deadline
Superannuation is one of the areas where timing is particularly important. Ryan explains: “You only get the deduction when you make the payment.”
To claim a deduction this financial year, superannuation fund contribution must be received by the fund before 30 June. Processing a payment close to the deadline can carry some risk, so it’s important to allow sufficient time.
For business owners paying themselves a wage, this may also be an opportunity to review personal super contributions and consider whether additional contributions are appropriate.
With the transition to same-day super coming in 1 July 2026, reviewing the timing of contributions and communicating with staff regarding the impact of the timing on their concessional contributions cap is important.
Step 4: Assess whether your structure still fits
EOFY provides a natural point to step back and consider whether your business is still set up in the right way. “Assess whether your current structure is still the right fit – have you grown out of it?” says Ryan.
This review can start with how the business operates. Timely reporting, clear processes and effective systems all support better decision-making and performance.
It’s also worth considering whether your legal and tax structure continues to suit your circumstances. As businesses grow or personal situations change, the structure that worked previously may no longer be optimal.
This is not something that needs to be resolved immediately, but EOFY is a useful time to raise the question and explore whether adjustments may be beneficial.
Step 5: Don’t Forget Division 7A
Division 7A is often not given a thought during the year. If you operate through a company and have taken drawings without formally declaring a dividend, there may be a Division 7A exposure.
These situations are common and rarely intentional, but they are firming on the ATO’s radar, which can result in those amounts being treated as unfranked dividends.
Identifying this before year-end is important. There are often options available to address the position, which is why the planning prior to 30 June is critical. Leaving it too late can reduce those options.
Step 6: Review cash flow for the new year
EOFY is also an opportunity to look ahead. The way you finish the year will influence how you start the next one. “Collect debtors, bring forward payments and identify gaps heading into the new year,” says Ryan.
Following up outstanding invoices can help bring cash into the business before year-end. It’s also worth reviewing upcoming obligations, including GST, PAYG instalments and other known commitments.
Using your current data to build even a simple cash flow projection can highlight any potential gaps early. This forms part of effective cash flow planning, giving you time to respond before they become more difficult to manage.
Are you ready?
EOFY preparation can feel like another item on an already full schedule. However, approached properly, it offers a valuable opportunity to review your position, make informed decisions and set a stronger foundation for the year ahead.
The decisions made before 30 June will shape both your tax outcome and your starting point for the new financial year. After that, the scope to influence those outcomes becomes limited.
AR & B Advisors is currently running EOFY planning meetings for clients. If you’d like to work through this end of financial year checklist with someone who understands your business and can help you act on it, get in touch.