Year-end preparation for Australian business owners

Preparing for year-end isn't just about closing the books. It also sets the clock ticking on filing and tax obligations.​

To help you prepare, we've put together a checklist of key areas that are worth reviewing before the financial year comes to a close.​

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As you approach year-end, your bookkeeping should be fully up to date. Check that all sales invoices for the year have been raised and all expenses have been accurately recorded.​​

This includes reconciling bank accounts, ensuring receipts are uploaded or attached, and checking that transactions are categorised correctly. Incomplete records can destroy your profit figure and create delays when accounts are being prepared.​

Outstanding invoices count as income, even if the money has not been received. This can inflate profit and tax. ​

Before year-end, assess whether outstanding debts are genuinely recoverable. If a customer has gone quiet, is in financial trouble, or has shown no progress despite follow-up, it may no longer be appropriate to treat that invoice as income. ​

Before 30 June, ask yourself: ​

Bad debts usually need to be written off before EOFY to be tax-deductible. Waiting until later can mean paying tax on income you never receive. ​

Missed creditors are one of the most common errors and often leads to overstated profit. ​

Check whether all bills incurred before 30 June have been entered, including professional fees, interest or supplier invoices received late. Accurate liabilities help ensure your tax position reflects reality. ​

Fixed asset registers often contain items that no longer exist or are no longer used. For example, old electronics that are obsolete or have been upgraded.​

Go through the list and check whether assets have been sold, upgraded, scrapped, or are no longer in use. Removing obsolete assets can unlock deductions and simplify depreciation in future years. ​

For businesses holding stock, year-end stock values directly affect taxable income. This is the time to identify obsolete, damaged, or slow-moving stock and make sure it’s valued appropriately. Overstated stock is one of the fastest ways to overstate profit. ​

If you claim vehicle expenses, EOFY is when usage assumptions are tested. ​

Check that your logbook is still valid and up to date, that business-use percentages still reflect reality, and that any changes in use are documented. Without proper records, you will be limited to the cents per km method, which caps claims at a maximum of 5,000 business kilometers per vehicle. This can make a big difference to your tax return.​

Reminder: a logbook should record all business and personal travel for at least 12 weeks, and can be used for up to 5 years provided there’s no significant change in the vehicle’s use.​

Read more: claiming motor vehicle expenses​

All Business Activity Statements covering the financial year should be submitted and aligned with your bookkeeping.​

Missed lodgements, inconsistencies, or missing documentation can delay accounts preparation and trigger follow-up work.​

Payroll records should be reviewed ahead of year-end. This includes checking that payroll reports are complete and employee records are accurate. You should also ensure that all payroll journals have been posted for the year.​

Review shareholder loan accounts and make minimum loan repayments. You may also need to declare dividends (ask your accountant about this).​

Personal concessional contributions are tax-deductible up to the yearly cap of $30,000 (including any employer contributions). If you have unused contributions from the last 5 years, you may be able to contribute more than the cap this financial year.​

If you plan to make any personal concessional contributions, make sure the money is received by the fund before 30 June and that you've submitted a Notice of Intent to Claim prior to claiming the tax deduction.​

Most delays with annual accounts are caused by missing or unclear documentation. Preparing these early saves time later and reduces back-and-forth during tax preparation. ​

Focus on documents related to: ​

If an expense is large, unusual, or new, expect it to be queried by your accountant.​

We recommend keeping these sorts of documents stored in an easily accessible location to avoid any scramble to find them later.​

Before year-end it’s a good time to review whether your current business structure is still the right fit. Do you need all those entities and tax structures? Maybe you need two companies and three trusts, maybe you don’t. Maybe it might be time to move from a sole trader to a company.​

Reviewing this before year-end allows all compliance to be wrapped up for the current year, with any changes starting cleanly in the new year. Changing structures at another point in the year creates additional filing and reporting obligations for every structure that existed during that period, which is why year-end is the simplest and best time to make these decisions.​

Preparing to close off the financial year is also a chance to step back and assess how the business has performed. Reviewing income, costs, and cash flow patterns can highlight trends that are easy to overlook during the year. ​​

Many business owners use this point to produce a high-level budget or forecast for the next financial year. Even a simple one can help guide decisions as the new year begins.​

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Getting ready for year-end does not have to be stressful. Beany works with Australian businesses to prepare accounts, handle filings, and keep everything compliant with the ATO. If you're looking for an accountant to support your business, get in touch or book a call with us today.​