The end of the financial year is approaching. Are you feeling any pressure? If you are, don’t worry. It’s all too common for business owners at this time of year. Missing receipts, unreconciled accounts, payroll obligations, and last-minute paperwork can quickly turn June into one of the most stressful times.
On top of that, you have to keep focusing on your customers.
In this blog, we will walk through some of the key areas small businesses should review before EOFY, including bank reconciliations, payroll, cash flow, business expenses, and financial reporting. A well-prepared EOFY not only eases the pressure, but helps keep your business compliant and set a stronger foundation for growth in the new financial year.
What Should Businesses Prepare Before EOFY?
Before EOFY, small businesses should reconcile bank accounts, organise receipts and expenses, review payroll and super obligations, follow up outstanding invoices, and prepare accurate financial reports. Staying organised early helps reduce errors, improve cash flow visibility, and make tax time significantly smoother.
Reconcile Your Bank Accounts Early
According to the latest ATO data updated in May 2026, the preliminary net small business income tax gap rose to 17.4% ($27.2 billion) for the 2022–23 financial year. This highlights why accurate bookkeeping and well-maintained records are so important heading into EOFY.
One of the most important EOFY tasks is reconciling your bank accounts. Matching transactions against your accounting software helps keep records accurate, improves cash flow visibility, and reduces the risk of missing or incorrectly categorised transactions before reporting deadlines arrive.
Key EOFY reconciliation tasks:
- Match all bank transactions in Xero or MYOB
- Check for missing or duplicate entries
- Review business credit card transactions
- Confirm loan and finance repayments are recorded correctly
- Ensure GST has been categorised accurately
Accurate reconciliations create a much clearer picture of your business finances and help avoid unnecessary EOFY stress when working with your accountant or BAS agent.
Bonus Resource: Accurate reconciliations are one of the most important parts of EOFY preparation. Read our guide to keeping your accounts accurate year-round: Reconciling Accounts: Why It’s Crucial for Business Accuracy
Organise Receipts and Business Expenses
EOFY is also the perfect time to review your business expenses and ensure supporting records are organised properly. Many small businesses miss valuable deductions simply because receipts are missing or expenses have not been recorded correctly.
According to Inside Small Business, small businesses are facing a critical survival crisis in 2026, with high operational costs and low confidence leading to significant churn, as 88 businesses closed for every 100 that opened in 2024. As such, it is more important than ever for businesses to reduce unnecessary waste and maintain clear visibility over their finances.
Important records to review:
- Supplier invoices and receipts
- Vehicle and fuel expenses
- Equipment and software purchases
- Business travel and accommodation records
- Subscription and recurring business expenses
Digital record keeping through software like Xero can make EOFY significantly easier by reducing paper clutter and helping keep documentation accessible year-round. Well-organised expense records not only support your deductions but also help improve the accuracy of your business reporting moving forward.
Bonus Resource: Reducing unnecessary business expenses can improve cash flow and strengthen profitability before the new financial year begins. Read our practical guide: How to Reduce Business Expenses: Smart Strategies to Improve Profitability
Review Payroll, STP and Super Obligations
Payroll can become one of the biggest EOFY headaches for small businesses if records are not maintained throughout the year. Reviewing your payroll setup early gives you time to correct any issues before reporting deadlines arrive.
Single Touch Payroll (STP), superannuation obligations, leave balances, and employee records should all be reviewed carefully before EOFY wraps up.
Payroll areas to check:
- Employee details and award rates
- STP reporting accuracy
- Superannuation payment deadlines
- Annual leave and sick leave balances
- Contractor versus employee classifications
Accurate payroll records help protect your business from compliance issues while also ensuring your team is paid correctly and on time. For businesses managing multiple staff or changing rosters, regular payroll reviews can make EOFY reporting far more manageable.
Insight: Staying aligned with employee award requirements helps businesses reduce the risk of underpayment issues, disputes, and potential penalties. Regular payroll reviews also support a fair and transparent workplace for your team. You can learn more about employer pay obligations through Fair Work Australia.
Bonus Resource: Payroll compliance becomes especially important at EOFY. Read our small business payroll checklist to help keep your reporting accurate and up to date: Payroll For Small Business Simplified: The Essential Checklist
Follow Up Outstanding Invoices and Review Cash Flow
EOFY preparation is not just about compliance — it is also a great opportunity to review the financial health of your business. Outstanding invoices and inconsistent cash flow can create unnecessary pressure heading into the new financial year.
By reviewing what is owed to your business and what your upcoming obligations look like, you can make more informed decisions and avoid surprises.
Key cash flow checks:
- Follow up overdue customer invoices
- Review unpaid supplier bills
- Assess upcoming tax and super payments
- Identify seasonal income trends
- Update budgets and cash flow forecasts
Strong cash flow management gives businesses more flexibility and confidence, especially during quieter trading periods or periods of rising operating costs. Understanding your numbers now helps position your business for a stronger start to the new financial year.
Bonus Resource: Strong cash flow management can help businesses stay prepared for EOFY obligations and make more confident financial decisions year-round: Cash Flow Management: How to Keep Your Business Financially Healthy
Prepare Your Financial Reports
Before EOFY arrives, it is important to ensure your financial reports are accurate and ready for review. Clean and organised reports make the process smoother for both business owners and accountants. Good reporting also helps you better understand how your business has performed over the past financial year and where improvements may be needed.
Reports to prepare before EOFY:
- Profit and Loss Statement
- Balance Sheet
- BAS summaries
- Payroll reports
- Accounts receivable and payable reports
Accurate financial reporting supports stronger business decision-making while reducing delays and corrections during tax time. Businesses with well-maintained books often spend less time dealing with EOFY administration and gain clearer financial insights throughout the year.
Pro Tip: EOFY reporting becomes much easier when your bookkeeping is maintained consistently throughout the year. Good systems create better visibility and far less stress when deadlines approach.
Bonus Resource: Understanding your Profit and Loss Statement can give you clearer insight into business performance before EOFY reporting and planning begins. Learn more here: What Is a Profit and Loss Statement? Understanding Your Business Performance
Don’t Leave EOFY Until June
One of the biggest mistakes small business owners make is treating EOFY preparation as a last-minute task. In reality, EOFY is much easier to manage when preparation happens gradually over several months. Simple habits like regular reconciliations, organised record keeping, and proactive payroll reviews can dramatically reduce pressure once June arrives.
The earlier you prepare, the more time you have to identify issues, improve reporting accuracy, and make informed financial decisions before the new financial year begins.
Summary: Preparing For Tax Time
Preparing for EOFY does not need to feel stressful or overwhelming. With organised records, accurate reporting, and proactive bookkeeping support, small businesses can approach tax time with greater confidence and clarity.
At First Class Accounts Terrigal, we work closely with businesses across Terrigal and the Central Coast to help simplify EOFY preparation, improve financial visibility, and keep bookkeeping running smoothly year-round.
If you would like to discuss your options, schedule in a free consultation today.