Your EOFY Checklist: Get Your Small Business Ready For A Smooth End Of Financial Year
The end of the Australian financial year and tax time are getting closer. It’s the time when a small business EOFY checklist could be handy to help SMEs review, reconcile, and reset for the year ahead.
The pressure to finalise records, close outstanding payments, lodge returns, and make smart last-minute deductions can be intense and potentially distract from business opportunities. During this time, business owners can also take stock of what’s working, cut what’s not, and set up smarter systems for next year.
With a solid EOFY checklist and professional advice, SMEs can make the most of tax deductions, improve record-keeping, and strengthen their financial position.
Brokers are well-positioned to assist with everything from clarifying super obligations to sourcing fast funding for deductible purchases.
This blog post breaks down the small business EOFY checklist into manageable tasks so you and your clients can confidently wrap up FY25 and hit the ground running in FY26.
EOFY Requirements For SMEs
Here’s a small business EOFY checklist to ensure nothing gets missed before key dates.
Each step can help your client meet tax obligations and contribute to reduced business expenses and better decision-making in the year ahead.
Account For Any Recent Tax Changes For The Current Financial Year
Australian tax laws change frequently, and any new policies may directly impact SMEs.
Brokers and their clients may want to prioritise staying updated on changes announced by the Australian Taxation Office. This could involve:
- Updated thresholds for the Instant Asset Write-Off
- Adjustments to the small business income tax offset
- Removal of temporary tax measures like full expensing
- Superannuation changes (such as the super guarantee rate increase)
Failing to adapt to these changes can lead to missed deductions or accidental non-compliance.
To confirm what’s applicable, brokers can routinely point their clients toward reliable sources like the Australian Tax Office’s business deductions page.
Finalise Records
Financial records must be up-to-date and reconciled before SMEs lodge tax returns or perform an end-of-financial year analysis.
This includes reconciling accounts payable and receivable, checking income statements, reviewing credit card and loan balances, and confirming that bank account totals match your books.
Clean financial statements help accountants or tax agents prepare accurate returns and reduce the chance of audits.
Below are a few additional types of records and documents that are pertinent during EOFY.
Business Activity Statements (BAS)
For GST-registered businesses with a turnover of less than $10 million, quarterly BAS submissions are vital.
Ensure that all GST collected and paid matches transaction records in your accounting software. Errors here could lead to amended returns and unnecessary stress.
In addition to lodging the final BAS for the financial year, SME owners can also review historical submissions to catch errors early.
If needed, consult a BAS agent or bookkeeper. Check out the ATO website for more information on BAS preparation.
Stocktake
Stock valuation affects your reported income and tax liability. A physical count can ensure records match reality and allow businesses to:
- Identify and write down damaged or obsolete stock
- Adjust asset values accurately
- Improve ordering efficiency in the year ahead
This is also an excellent opportunity for financial advisors to introduce better stock control systems for FY26.
Other Key Records
Preparing other key records can make your client’s lives much easier at the end of the financial year. A complete record set will likely include:
- Employee timesheets and leave balances
- Capital gains documentation (for capital gains tax calculation)
- Equipment hire agreements
- BAS summaries
- Business loan and credit card statements
- Relevant bank statements
Reviewing all these can potentially help with a smoother tax return process, a reduced tax bill, and a complete picture of business operations.
Create An Up-To-Date Profit And Loss Statement
This financial report clearly shows how much business income is generated, what is spent, and what is left over. Preparing it can help with the following:
- Assessing profitability
- Identifying underperforming areas
- Benchmarking against industry averages
- Supporting loan applications and investor interest
- Understand where most business expenses can be reduced
You may want to double-check that your client’s P&L statement is generated from accurate and reconciled data. To track progress, consider preparing comparisons of quarterly or yearly reports.
Collate Any Tax Deductions For The Current Financial Year
Deductions can lower your client’s taxable income. Brokers may want to encourage their clients to compile all deductible expenses and confirm they are correctly recorded and supported by receipts or invoices.
Review these potential tax deductions you can help clients write off using this end-of-financial-year checklist.
Instant Asset Write-Off (IAWO)
Under the current $20,000 tax-free threshold, eligible businesses can write off or claim deductions on the full cost of new or second-hand business assets. To qualify:
- The business must be actively trading
- The asset must be installed and ready for use by 30 June
Check what’s included with the purchase (e.g. laptops, tools, machinery) and document each asset’s purchase date and invoice.
Operating Expenses
Recurring expenses form a large part of sole trader and SME deductions. Categorise these into:
- Administrative (rent, subscriptions, stationery)
- Marketing (ads, promotions, sponsorships)
- Professional services (accounting, legal, and professional tax advice)
A breakdown of these can help spot overspending and justify year-end decisions like cutting unused tools.
Business Vs. Employee Travel Expenses
Understanding the difference between owner and employee travel is crucial:
- Owner travel must be for business transactions and not include personal leisure
- Employer-issued itineraries and supporting documentation should support employee travel
Meals, lodging, and transport are often deductible, but only when part of legitimate work activities.
Encourage clients and their employees to maintain documentation such as travel diaries, receipts, or payment summaries.
Fringe Benefits Tax (FBT)
This tax applies to non-salary benefits provided to employees. For EOFY purposes:
- Identify any reportable fringe benefits
- Calculate your FBT liability and ensure lodgement
- Consider reducing fringe benefits in the coming year to lower tax exposure
Employers typically need to proactively track these benefits throughout the year, not just during tax time.
Super Obligations
Superannuation can help SME owners increase their tax deductions, and it’s another necessary part of filing tax returns. To ensure full deductibility:
- Contributions must be received by the fund before 30 June
- Use the ATO’s Small Business Superannuation Clearing House if applicable
- Include super for all eligible employees, even if they’re part-time or temporary
Keep contribution reports for at least five years in case of an audit.
Clear Outstanding Invoices
EOFY is the perfect time to tidy up accounts receivable and improve income statements. Create a report to identify unpaid invoices.
For each one:
- Send a follow-up email or call
- Offer payment plans if needed
- Record communications in your CRM or accounting system
If the debt is over 12 months old and recovery is unlikely, SMEs may write it off as a bad debt deduction. Keep proof of your collection attempts for ATO compliance.
Digitise Any Paper Records
The ATO recommends digital record keeping for easier retrieval. Encourage clients to:
- Scan and store contracts, tax returns, receipts, and supplier docs
- Use available tools to automate data entry
- Automate tasks such as payroll processing for easier access later on
- Back everything up on cloud storage with two-factor authentication for security
Digitisation reduces the chance of lost documents and simplifies payment compliance once tax time comes around.
Consult A Registered Tax Agent Before Finalising Your Income Tax Return
A last-minute chat with a tax professional can uncover opportunities to:
- Prepay expenses for next year
- Maximise tax benefits and depreciations
Tax agents also help interpret grey areas, like claiming home office expenses or personal-use assets. This tax planning tactic can save businesses from costly ATO disputes.
Lodge Income Tax Return
Whether your client is a sole trader, partnership, trust, or company, they must lodge their tax return in line with ATO deadlines. Late lodgement can result in penalties, even if the business doesn’t need to pay tax.
Use an end-of-financial-year checklist to confirm that:
- All income sources are reported
- All deductions are claimed with supporting documents
- All ATO payment plans or disputes are updated
Prepare For FY 2026
Looking forward is just as important as looking back. Brokers can help SMEs with more than financial management for the current year by:
- Setting sales targets and budgets
- Mapping out equipment upgrades
- Refinancing or restructuring debts
- Applying for working capital to support growth
Use insights from the past year to make strategic decisions for FY26. This includes upgrading systems, hiring, and pursuing new markets.
Conclusion
The end of the financial year doesn’t have to mean stress and endless spreadsheets.
With a structured EOFY checklist and trusted broker guidance, small business owners can close out FY25 smoothly and start FY26 strong.
Brokers can add real value by helping clients manage compliance, improve cash flow, organise business structure, and reduce their tax liability.
Helping clients navigate their tax responsibilities, uncover deductions, and plan strategically for the next financial year can position you as more than a broker – you become a trusted business partner.
Support your clients through EOFY with funding from Lumi. Whether they need to invest in new assets or bridge expenses, Lumi offers fast & flexible loans for SMEs.
