EOFY is crunch time for small business owners. You’re likely juggling the usual tax-time prep, but also a final push to bring in revenue, close out the quarter, and set the business up for a stronger start to the new financial year.

Even the most organised business owners can overlook important year-end tasks in the rush. That’s why we asked James Scott, founder of small business accounting firm JD Scott + Co, to share the common missteps he sees at EOFY and how to avoid them.

To help you focus on what matters most right now, you’ll also find a handy EOFY checklist at the end of the article. Whether it’s your first time lodging a business tax return or you’ve been in business for years, this checklist will help you stay on track. Make sure to download it.

Strengthen your cash flow before 30 June

According to James, reviewing your work-in-progress (WIP) and outstanding debtors is one of the simplest ways to improve your position fast. “Ask yourself: what can I bill, what can I finalise, and what can I realistically collect before the end of the month?” he says. Unsent invoices or long-overdue payments can often be nudged across the line with a phone call, reminder email, or small incentive.

If your business has the cash available, now is also a good time to prepay expenses you’ll need early next year. Things like rent, software subscriptions, or insurance may be deductible in this financial year, helping reduce your taxable income.

As part of your EOFY tax planning, James recommends taking a closer look at your overheads. “You don’t want to cut essential services, but EOFY is a natural point to reassess where your money is going. Sometimes you’re still paying for things you no longer use or need.”

Finally, don’t wait until tax time to find out where you stand. A quick check-in with your accountant for a tax forecast can give you clarity on your obligations and help you plan how to meet them.

5 EOFY housekeeping tasks you can’t skip

Some EOFY tasks aren’t urgent until they are. Leave them too late, and you risk missing deductions, holding up your accountant, or scrambling to fix errors under pressure.

Here are five essentials worth prioritising now:

1. Pay super contributions early

To claim a deduction this financial year, super must be received by your employees’ funds before 30 June. Transfers can take several days, especially if processed through clearing houses, so it’s best not to cut it close.

For more on deductible expenses, see what you can claim at EOFY as a small business owner.

2. Reconcile your payroll

Cross-check payroll records against your STP submissions, bank payments, and BAS lodgements. This helps ensure your end-of-year reporting is accurate and avoids complications when finalising STP or issuing income statements.

3. Update your asset register

If you’ve purchased or disposed of business assets during the year, make sure your records are current. This supports your accountant in calculating depreciation and helps you claim what you’re entitled to.

4. Check for outstanding inter-entity loans

If your business operates across multiple entities or you’ve borrowed from the company in your director capacity, now’s the time to tidy up those loan balances. When loans aren’t properly documented or repaid, they could trigger Division 7A tax consequences, meaning the ATO may treat them as taxable dividends.

This won’t apply to every small business, but when it does, it’s often overlooked. To stay on top of it, speak to your accountant about whether a complying loan agreement is needed.

5. Review trust distributions or dividends, if applicable

While not relevant to all businesses, those operating through trusts or companies may need to declare distributions or dividends before year-end. If this applies to you, speak to your accountant now to avoid a last-minute rush.

Had a tough year? Here’s what to focus on

If the past year didn’t go to plan, don’t let that stop you from closing it out with intention. EOFY can be the perfect opportunity to take stock and lay foundations for a comeback in the new year.

James’s first piece of advice: lodge everything on time. “Lodging on time keeps you in good standing and gives you a clearer picture of where things sit, even if the year didn’t meet expectations,” James says. Your accountant can help you work out the next step, whether that means deferring payments, requesting support, or exploring short-term funding options.

Next, reflect on profitability. Not just at a top-line level, but client by client or product by product. Some might look like strong performers at a glance but are actually draining your time or cash once you factor in effort, delays, or discounts. James notes that even a quick review can help clarify what’s worth keeping, what needs adjustment, and what to step away from in the new year.

Finally, refresh your business plan. This doesn’t need to be a full rewrite. A one-pager with revised goals, updated assumptions, and a short-term focus can bring direction back into the picture.

And if you’re feeling discouraged, remember: staying in business through a tough year is an achievement in itself.

Lodging late can hurt more than you think

Falling behind on lodgements is one of the most common EOFY mistakes, and one of the easiest to avoid.

You don’t need to have the cash ready to lodge on time. James explains that staying up to date signals to the ATO that you’re engaged and willing to meet your obligations. It also puts you in a stronger position to negotiate a payment plan if needed.

More broadly, late or missing lodgements can affect your ability to access finance. Lenders often request recent BAS or tax documents when assessing loan applications, especially around EOFY when cash flow tightens. Keeping your records current helps avoid delays if you need fast funding.

Recently, the ATO has updated its approach to late lodgements. If you submit your BAS late, they may require you to start lodging monthly instead of quarterly. This can put pressure on your cash flow and increase your reporting costs.

If you’re unsure what you owe or when to lodge, speak to your accountant as soon as possible. They may be able to access extended deadlines or help you plan a strategy for managing any outstanding debt.

Get your EOFY checklist and finish the year strong

There’s still time to take steps to reduce your tax, boost cash flow, and clear the decks for the new financial year. To help you stay on track, we’ve developed a checklist that zeroes in on the tasks that matter most — the ones that protect your finances and set you up for what’s next.

Small Business EOFY Checklist

Prefer a PDF version? You can also download the Small Business EOFY checklist and start ticking things off.

And if you want to talk through funding for your Q1 plans, we’re one phone call away.