End of Financial Year Checklist: Preparing Your Business for EOFY

May 30, 2024
minutes to read
Justin Bohlmann
Table of Contents

The end of the financial year can be full of dread and chaos for business owners but it doesn't have to be.

End of Financial Year is almost an afterthought If you've been using Thriday for a year, chances are you're feeling super organised and in control.

Your expenses are all sorted because you've been saving all of your receipts to Thriday, which has also helped you minimise your tax bill.

Your transactions are reconciled because that happens automatically when you save your receipts.

You know exactly how much tax you owe because every time you earn and spend money your tax is calculated.

You have money set aside for tax because you've automated the allocations to a dedicated tax account, so every time you get paid, tax is saved by default.

You've used the asset and liability register to claim deductions on laptops, phones and tools, minimising your tax even more.

You're on top of your BAS lodgments, which you've been lodging directly from Thriday to the ATO each quarter 

And... you're all ready to lodge your end-of-year tax directly to the ATO right from Thriday. 

You've reached out to Thriday for some additional tax planning advice for next year because not only is your accounting and tax automated from the same platform you do your banking but they also have registered tax agents who are expert in small business planning.

If you haven't been using Thriday not all is lost. Here's a nice little End of Financial Year checklist to make sure you're ready to rock n role next financial year.

See the End of Financial Year checklist here
Thriday all-in-one financial management platform
Thriday all-in-one financial management platform

(Thridayers should check it out too) 

The end of the financial year (EOFY) is a significant period for businesses. It marks the close of one fiscal period and the commencement of another. This time of year requires meticulous planning and organisation.

Businesses must align their financial reporting and compliance with the Australian Taxation Office (ATO) regulations. Preparing for EOFY involves a comprehensive checklist, guiding businesses through tasks like bookkeeping, tax filings, and reviewing financial strategies.

A methodical approach to the EOFY can make the transition into the new financial year a smooth one. It can also help businesses capitalise on opportunities to improve financial health.

It is essential for businesses to review their accounts, ensure accurate reporting of income and expenses, and take strategic steps for tax optimisation. Furthermore, addressing assets and inventory management, employee and payroll considerations, and ensuring the necessary financial documents are in order, sets a steady foundation for a compliant and prosperous year ahead.

Key Takeaways

  • Proactive preparation for EOFY ensures compliance and accurate financial reporting.
  • Strategic tax planning contributes to overall financial health and potential savings.
  • Effective management and review processes lay the groundwork for a successful new financial year.

Tax Planning and Compliance

At the end of the financial year, thorough tax planning and adherence to compliance are critical for maximising tax benefits and fulfilling legal obligations. Taxpayers should consider all available tax deductions, contribute effectively to superannuation, and confirm that their business structure continues to offer optimal tax advantages.

Thriday helps you do this by eliminating a lot of financial admin throughout the year and making it extremely easy to remain organised.

Assess Tax Deductions

Taxpayers must closely review their expenditures to identify potential tax deductions. They can often claim a variety of expenses that relate to their income generation. This could include office supplies, travel costs, or depreciation on assets. It’s essential to maintain accurate records throughout the year to substantiate these claims on their income tax returns.

Simply save your receipts to Thriday during the year and we automatically categorise them, assign the chart of accounts and recalculate your tax in real-time so you're claiming all the deductions you can.

Thriday has everything you need to manage your financial admin in one place
Thriday has everything you need to manage your financial admin in one place

Optimise Super Contributions

Contributing to superannuation is a tax-effective strategy that can reduce an individual’s taxable income. They should consider making additional contributions to their super to maximise the tax benefits. The ATO provides caps on super contributions, which, if adhered to, can offer significant tax advantages.

You can automate this from Thriday setting up an allocation rule that automatically transfers a set percentage of all revenue directly to your super account.

Evaluate Business Structure

Business owners should evaluate their business structure annually. Different structures can yield various tax obligations and benefits. Whether operating as a sole trader, partnership, trust, or company can substantially impact tax returns and liability. It’s prudent to consult a tax professional to ensure their structure aligns with their financial goals and offers compliance with ATO regulations.

If you'd like our help simply email us wecare@thriday.com.au.

Managing Inventory and Assets

The end of the financial year necessitates stringent checks on both inventory and assets to ensure a business’s financial health and compliance. Accurate records are crucial for informed decision-making and strategic planning in the upcoming fiscal period.

With Thriday you can add your assets and liabilities to the, you guessed it,  asset and liability register to calculate and claim deductions and depreciation.

Conduct Stocktake

A comprehensive stocktake should be completed to account for all physical inventory. This process determines the value and quantity of stock on hand, which is important for accurate financial reporting and for identifying discrepancies. 

  • Method: Physically count all stock.
  • Frequency: Annually, at a minimum, more frequently for high-turnover items.
  • Documentation: Update inventory records with current counts.

Review Asset Purchases

Year-end is also the time to review asset purchases, ensuring that all equipment and land acquisitions are properly recorded. This includes:

  • Dates of Purchase: For calculating depreciation.
  • Costs: Including purchase price and associated expenses.
  • Maintenance: Tracking upkeep costs and factoring them into the value.

Asset Type, Date Purchased, Cost (AUD), Maintenance Expenses (AUD)

Businesses should also reconcile their asset register with physical checks to ensure all assets are accounted for and assess if any need to be written off or depreciated.

The built-in asset and liability register in Thriday makes this easier than ever.

Employee and Payroll Considerations

When gearing up for the end of the financial year, businesses must ensure the accuracy and compliance of their payroll and employee records. These considerations are vital for meeting legislative requirements and providing correct payments to employees.

Payroll is a big feature coming to Thriday soon, watch this space.

Super Guarantee Compliance

Businesses must review their Superannuation Guarantee (SG) contributions to ensure they are compliant with current regulations. The required SG contribution rate should be applied correctly to the employees’ wages

It’s also important to check that contributions are paid by the required deadlines to avoid the Superannuation Guarantee Charge (SGC). Employers need to consider the impact of any changes in legislation that may affect the contributions they must make for the upcoming financial year.

Update Payroll Details

Updating payroll details is another critical step at the end of the financial year process. Employers should confirm that all payroll tax obligations have been met and that the correct amounts have been calculated and reported. 

This includes ensuring that Single Touch Payroll (STP) reports are up-to-date, thereby streamlining reporting to the Australian Taxation Office (ATO). It’s also necessary to verify the accuracy of employees’ personal details and wages recorded in the payroll system.

Preparing Financial Documents

As the financial year draws to a close, preparing financial documents is a critical step to ensure that a business’s records are accurate and ready for assessment. This includes compiling various financial statements, thoroughly reviewing profit and loss statements, and reconciling all bank accounts.

With Thriday, this just happens automatically, all of your financial reports remain up to date and are recalculated in real-time every time you earn and spend money.

Compile Financial Statements

To kick off the end of the financial year, companies need to compile their financial statements. These typically encompass the balance sheet, income statements, and statements of stockholders’ equity. 

The balance sheet gives a snapshot of the business’s financial health, displaying assets, liabilities, and equity. 

Income statements, or profit and loss statements, reflect income, expenses, and profit over the period. It’s important for this documentation to be precise as it forms the basis for financial analysis and future planning.

Review Profit and Loss Statements

Profit and loss statements play a pivotal role as they illustrate the business’s operational results. These should be reviewed to confirm that all revenue and expenses are accounted for and correctly categorised. 

It’s crucial to examine these figures with a keen eye to understand the profitability and to indicate areas for financial improvement or cost reductions.

Reconcile Bank Accounts

Reconciliation of bank accounts ensures that a company’s records align with the bank statements. This process involves cross-checking the balances and transactions in the business’s books against the bank’s records. 

Regular reconciliation helps to catch and rectify any irregularities, such as omissions, errors, or fraudulent activity. Payroll must also be reconciled to verify employee compensation has been accurately recorded and that the stock inventory levels are reflected correctly in the financial records.

Built-in bank accounts are Thriday's secret sauce.

The data that flows in and out of these accounts is what we use to automate the bookkeeping, accounting and tax.

Built-in bank accounts* are Thriday's secret sauce

GST and BAS Statements

In preparation for the end of the financial year, businesses must ensure their Goods and Services Tax (GST) and Business Activity Statements (BAS) are in order. They serve as essential tools for reporting and reconciling tax obligations to the Australian Taxation Office (ATO).

You can lodge your BAS directly from the ATO from Thriday. It's never been easier!

Review GST Obligations

Businesses should examine their accounts to determine if all GST obligations have been accounted for on sales, purchases, and expenses. 

This includes accurately recording GST collected on sales and GST credits eligible to be claimed on business purchases. 

It’s integral to consistently apply the correct GST codes throughout the financial year, ensuring that records are compliant with ATO requirements.

Key steps to review GST obligations include:

  • Verify all sales invoices and receipts to confirm appropriate GST has been charged.
  • Assess all expenses and purchases for eligible GST credits.
  • Reconcile GST accounts to ensure records match general ledger entries.

If you're registered for GST Thriday takes this into account automatically.

We even use the ABN details from the receipts you save to Thriday to check if the merchant is registered for GST to make sure we're crossing the Ts and dotting the Is.

Prepare Business Activity Statements

Business Activity Statements must be prepared with precision, reflecting all transactions that have a GST implication. 

Entities must itemise sales, purchases, and relevant expenses within the specified BAS reporting period.

The BAS should include:

  • Total sales: Reporting the full amount of sales for the period.
  • GST on sales: Listing the GST collected from customers.
  • GST on purchases: The sum of GST credits to claim for business purchases.

Preparation involves collating and summarising transactions from ledgers and accounting systems. Entities may then lodge their BAS statements either monthly, quarterly, or annually, depending on their registration details and turnover thresholds, as outlined by the Australian Taxation Office.

Review and Audit

The end of the financial year requires a meticulous assessment of a business’s financial documentation to ensure accuracy and adherence to compliance standards. Essential to this process is the examination of accounts for potential discrepancies and the involvement of tax professionals for an expert evaluation.

Check for Discrepancies and Errors

It is critical that businesses investigate their financial statements for any discrepancies or errors that might affect their tax filings. 

The first step involves:

  • Thoroughly reviewing all receipts, ensuring they are correctly recorded and categorised.
  • Cross-checking the entries across different financial reports to verify their consistency.
  • Highlighting any anomalies and investigating the source of these errors to correct them promptly.

This scrutiny helps maintain compliance with the Australian Tax Office’s standards and prepares the business for a smooth audit process.

This is automated with Thriday; you upload your receipt, and we use optical character recognition to extract the data from the receipt; we then use AI to match the receipt to the corresponding transaction, assign a category and chart of accounts and calculate your tax for you.

It sounds complicated because in the background, it is; the beautiful thing is for you, it's never been easier. You don't even have to think about it. It just happens.

Engage with Tax Professionals

Some accountants are afraid that Thriday and similar technology companies are going to take their jobs away. This couldn't be further from the truth. In reality we're here to eliminate financial admin for the small business owner. In some cases that means we're also eliminating financial admin that accountants used to do and charge for but really, who wants to do data entry.

We believe accountants should be paid for the things that can't be automated and need complex human thought, understanding and nuance which is why this section is still important.

To navigate the complex landscape of tax compliance, businesses should:

  • Consult a tax accountant or tax agent who is well-versed in Australian tax law.
  • Seek assistance from a tax advisor to interpret intricate tax scenarios and opportunities for deductions or credits.

Engaging with professionals not only aids in reviewing the accuracy of financial records but also ensures that the business adheres to all tax obligations efficiently. With expert guidance, companies can alleviate the stress associated with the audit process and stand confident in the integrity of their financial practices.

Financial Health Check

A Financial Health Check at the end of the financial year is an essential step for any business to assess its profitability and sustainability. The following subsections break down the components necessary for a thorough evaluation.

If you do want to talk to a tax agent for planning and advice we can put you in touch with the right people just email us wecare@thriday.com.au

Analyse Profit Margins

Assessing profit margins is crucial to understanding the overall health of a business. 

They should compare sales against the cost of goods sold (COGS) to determine the effectiveness of pricing strategies and cost controls. 

An examination of the profit and loss statement from the past financial year will reveal the areas where the business has succeeded and those where improvements are needed.

  • Gross Profit Margin: Calculate by (Sales - COGS) / Sales.
  • Net Profit Margin: Calculate by (Net Profit / Sales) * 100.

We advocate for the Profit First method here at Thriday. If you're complying to that then this is just another consideration that you can keep an eye on but it just happens without you having to worry about it.

Evaluate Cash Flow

Cash flow analysis involves scrutinising the timing and amounts of cash flowing in and out of the business. It's not just about the present. It is essential to forecast future cash flows to ensure the business can meet its obligations.

A comparison of budgeted versus actual receipts and payments provides insights into the business's liquidity.

  • Positive Cash Flow: Indicates that the sum of cash from salesreceipts, and other income exceeds the cash going out for purchasesbusiness expenses, and other payments.
  • Negative Cash Flow: Implies expenses outpace income, indicating potential problems that could undermine future sustainability.

Businesses need to have a rigorous plan for the future. This includes strategies for maintaining or improving profit margins and ensuring that cash flow remains positive. This allows them to make informed decisions about expenditures, investments, and growth opportunities for the upcoming financial year.

In the past understanding and being able to visualise your business cash flow was complicated and time-consuming. One of our favourite features at Thriday is the cash flow chart, every time you open the app you can see exactly how your business is performing.

Ensuring Adequate Insurance and Superannuation

As the financial year draws to a close, businesses must review their insurance coverages and ensure that all superannuation contributions have been made correctly. This essential diligence not only complies with statutory requirements but also provides peace of mind.

Review Insurance Policies

Insurance policies safeguard businesses against unexpected events. It is vital to review insurance coverages at the end of the financial year to ensure they align with current business needs. 

Policies should cover new equipment, services, and employees that may have been added throughout the year. 

Businesses should 

  • Assess existing policies for coverage adequacy.
  • Update insurance to reflect changes in business operations.
  • Ensure premiums paid are up-to-date and document any adjustments made.

Check Superannuation Contributions

Superannuation is a critical element to secure employees' retirement futures. Employers must confirm they have made at least the mandatory 10% Superannuation Guarantee contributions to eligible employees' super funds. 

They should also review and adjust any additional arrangements, like salary sacrifice agreements, as necessary.

Important considerations for employers: 

  • Verify all contribution deadlines are met to avoid penalties.
  • Reconcile contributions with employee earnings to ensure accuracy.
  • Confirm the receipt of all contributions by employees' super funds.

Planning for the Next Financial Year

As the financial year approaches its close, businesses must not only finalise their current affairs but also look ahead. Effective forward planning ensures a clear path for financial growth and stability.

Set Budget and Financial Targets

At the onset of a new financial year, setting a realistic budget is crucial for a business's monetary health. 

They should review past performance, considering both successes and shortcomings, to establish clear financial targets

Specific profit goals and expense ceilings give businesses a framework to measure progress and maintain financial discipline.

  • Establish Profit Targets: Determine the desired level of profitability considering the previous year's performance and market conditions.
  • Expense Budgeting: Project and control costs by creating detailed budgets for various business segments.

Create a Timeline for Financial Tasks

Managing time effectively is key to the success of any financial plan. 

Businesses should outline a comprehensive timeline for all crucial financial tasks, incorporating statutory deadlines and personal business milestones.

Key Deadlines to Include:

  • Tax Return Filing: This is due to the Australian Taxation Office (ATO) by October 31 or later if filed by a registered tax agent.
  • Superannuation Contributions: Quarterly due dates are the 28th day following the end of a quarter for Superannuation Guarantee contributions.
  • Budget Reviews: Schedule these regularly throughout the year to ensure alignment with financial goals.

Frequently Asked Questions

When approaching the end of the financial year, it's essential to be prepared. The following questions address the key tasks and strategies businesses should employ to close off the year efficiently.

What are the critical tasks to include in a year-end financial checklist?

A comprehensive year-end financial checklist should include tasks such as reviewing outstanding invoices, reconciling bank statements, and updating the ledger for accuracy. It's also important to review all financial transactions to ensure they are recorded correctly.

What financial statements should be prepared at the fiscal year's conclusion?

At the fiscal year’s conclusion, businesses should prepare their balance sheet, income statement, and cash flow statement. These documents provide a snapshot of the company's financial health and are essential for accurate reporting and future planning.

Which items should be assessed by businesses prior to the fiscal year's end for bookkeeping purposes?

Businesses should assess all invoices, both receivable and payable, inventory levels, and capital asset registers before the fiscal year ends. This ensures that their bookkeeping records are accurate, reflecting the true state of the company's finances.

What is the timeline for year-end sales in relation to the financial year?

Year-end sales should be reviewed and finalised prior to the close of the financial year. This process involves confirming all sales transactions have been recorded and that any returns or discounts are accurately reflected in the financial records.

How can a company ensure compliance with Australian financial year-end reporting requirements?

To ensure compliance with Australian financial year-end reporting, a company should be aware of the Australian Taxation Office guidelines. This includes submitting all necessary documentation on time, such as tax returns and financial reports.

What purchases should be considered before the fiscal year's closure to optimise tax benefits?

Before the fiscal year closes, consider making purchases on capital items eligible for tax deductions or write-offs. Proper timing of these purchases can lead to significant tax advantages.

The purchases should also align with the business's strategic investment plans.


There's a lot to think about, at least there was a lot to think about before Thriday came along.

If you want to know if Thriday is right for your business book in a demo, we're here to help.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360  AFSL 241167 (Regional Australia Bank).  Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you.

Why waste time on financial admin when Thriday can do it for you?

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