End of Financial Year Checklist 2026: Everything Your Business Needs to Do

Getting Ready for 30 June

The end of the financial year (EOFY) on 30 June is one of the most important dates on the Australian business calendar. It marks the cut-off for your annual tax return and triggers a series of tasks that need to be completed to close out the year properly.

Starting your EOFY preparation now - rather than scrambling in the last week of June - means less stress, fewer errors, and potentially significant tax savings through proper planning.

Bookkeeping Tasks

Reconcile All Bank Accounts

This is task number one. Every bank account, credit card, and loan account should be reconciled up to 30 June. There should be no unreconciled transactions and your Xero balances should match your bank statements exactly.

If you have been using SortBooks throughout the year, most of your reconciliation is already done. You just need to process the final few days of June.

Clear Outstanding Items

Review your accounts receivable and accounts payable for any items that need attention:

• Write off any bad debts that are uncollectable (this is a tax deduction)
• Follow up on outstanding customer invoices before year-end
• Ensure all supplier bills for the year have been entered
• Process any employee expense claims that are outstanding

Review Prepayments and Accruals

Prepayments are expenses you have paid in advance that relate to the next financial year. Accruals are expenses you have incurred this year but not yet been invoiced for. Both need to be adjusted for accurate year-end reporting.

Common examples:

• Insurance paid in advance (prepayment)
• Annual subscriptions crossing the year-end (prepayment)
• Accounting fees for preparing this year's return (accrual)
• Utilities consumed but not yet billed (accrual)

Stock Take

If your business holds inventory, conduct a physical stock take as close to 30 June as possible. The value of your stock at year-end affects your cost of goods sold and therefore your taxable income.

Record any obsolete, damaged, or slow-moving stock separately. You may be able to write down the value of this stock as a deduction.

Tax Planning Tasks

Bring Forward Deductions

If your business has had a profitable year, consider whether you can bring forward deductible expenses into this financial year:

• Prepay expenses - Prepay up to 12 months of deductible expenses before 30 June (rent, insurance, subscriptions)
• Purchase assets - Buy needed equipment before 30 June to access instant asset write-off provisions
• Superannuation - Make additional superannuation contributions before 30 June (both employer and personal contributions)
• Write off bad debts - Formally write off any debts you have determined are uncollectable

Defer Income (If Appropriate)

If you are on cash basis accounting, delaying invoicing until after 30 June pushes that income into the next financial year. Only do this if it makes commercial sense - do not delay invoicing just for a tax benefit if it hurts your cash flow.

Review Asset Depreciation

Check your fixed asset register:

• Are there any assets that have been disposed of or scrapped? Remove them and claim any remaining deduction.
• Have you claimed all available depreciation deductions?
• Are there assets eligible for the instant asset write-off?
• Have any assets been used for both business and personal purposes? Adjust the deduction accordingly.

Superannuation Obligations

Ensure all superannuation obligations are paid before 30 June. To claim a deduction for super contributions in this financial year, the contributions must be received by the super fund before 30 June - not just sent.

Allow at least 5-7 business days for electronic super payments to clear.

Payroll Tasks

Finalise All Pay Runs

Process the final pay run for the financial year and ensure all wages, PAYG withholding, and superannuation are recorded correctly.

Single Touch Payroll Finalisation

STP finalisation (previously called payment summaries or group certificates) must be completed through your STP-enabled software. This makes employee income information available to the ATO for pre-filling individual tax returns.

The deadline for STP finalisation is 14 July.

Review Employee Records

Check that all employee details are correct, including:

• Tax file numbers
• Superannuation fund details
• Employment types (full-time, part-time, casual)
• Leave balances

Compliance Tasks

Lodge Outstanding BAS

Ensure your March quarter BAS has been lodged and any outstanding BAS from earlier periods has been resolved.

Review ATO Account

Log into the ATO Business Portal and check your account for any outstanding obligations, credits, or correspondence that needs attention.

TPAR (Taxable Payments Annual Report)

If your business is in a TPAR-reporting industry (building and construction, cleaning, courier, road freight, IT, or security), you must lodge a Taxable Payments Annual Report by 28 August.

Collect and verify all subcontractor payment data before year-end to make this lodgement straightforward.

Working With Your Accountant

Provide Complete Records

Your accountant needs accurate, complete books to prepare your tax return and financial statements. Ensure:

• All bank accounts are fully reconciled
• The profit and loss statement accurately reflects the year's trading
• The balance sheet is clean and accurate
• You have documented any significant transactions or events

Discuss Tax Position

Meet with your accountant before 30 June to discuss your expected taxable income and any last-minute tax planning opportunities. This conversation is much more valuable before year-end than after.

Gather Documents

Collect any documents your accountant will need:

• Bank statements for all accounts
• Loan statements showing balances and interest paid
• Investment statements
• Private health insurance statements
• Any ATO correspondence received during the year

The Timeline

April-May: Start EOFY preparation. Review books, identify issues, begin tax planning conversations with your accountant.

Early June: Finalise tax planning actions. Make any pre-30 June purchases, prepayments, or super contributions.

Last week of June: Final reconciliation. Process the last pay run. Complete stock take.

1-14 July: STP finalisation. Provide complete records to your accountant.

August-October: Accountant prepares tax return and financial statements.

Starting early is the key to a stress-free EOFY. Use this checklist to stay on track, and let SortBooks keep your bookkeeping current throughout the process.