EOFY small business checklist for a stress-free tax time

Summary

As the end of the financial year (EOFY) approaches, small business owners often find themselves overwhelmed by the tax time process. Our comprehensive EOFY checklist is here to help, offering essential tips and steps to make tax time a breeze. From streamlining admin to claiming deductions, we've got you covered for a stress-free EOFY.
 

How to master EOFY

The end of the financial year can be a time of reflection, resolution and, unfortunately, a slight rise in stress levels for many small business owners across Australia. In fact, according to a 2024 survey by accounting software company Xero, a whopping 71% of small business owners confess to finding this period stressful, with 83% overwhelmed by one or more aspects of the process.¹

But it doesn’t have to be like this. With a little preparation and a dash of savvy know-how, you can turn tax time into a much less daunting affair. Here’s your ultimate EOFY checklist, designed to help you sail smoothly into the new financial year.
 

1. Streamline your paperwork and get organised

Before you find yourself knee-deep in admin, take a moment to get organised. Gather and file all those stray invoices, receipts and bank statements that are hiding in drawers and digital nooks. Prepare any required reports, such as profit and loss statements and balance sheets, or stocktake and asset reports, so you can provide a clear picture of your business’s financial health. 

Carve out a dedicated time slot each day or once a week where you can focus on tidying up your bookkeeping. 

Pro tip: Embrace the magic of digital tools like receipt-scanning apps (the Australian Taxation Office (ATO) has a free myDeductions app) to store and categorise expenses online, or go one step further with cloud-based accounting software, e.g. Xero or MYOB, which can automate a lot of time-consuming administrative tasks, including payroll, expenses, invoicing and reporting.
 

2. Unleash your tax superhero with a good accountant

When it comes to taxes, a little expertise goes a long way. A registered tax agent who understands you and your business will help you navigate the often-complicated journey and make sure you are accessing all the correct deductions and concessions, while staying compliant.

Pro tip: For sole traders, there are digital tax services, that offer all-in-one services – where you can invoice, expense and submit your tax or connect to your tax agent all through the app, without you having to do any of the calculations yourself.
 

3. Navigate tax changes and stay up to date

The tax world is ever-evolving, and when you are busy with the ins and outs of your own business it can be easy to miss important updates. Stay ahead by getting acquainted with the latest updates from the ATO. Being informed means you’re not just following the rules; you’re getting the most out of them.

Pro tip: Subscribe to the ATO’s newsletters and social media channels. Their monthly small business newsletter shares pertinent news, offers, free webinars, tips for small businesses and timely reminders.
 

4. Boost your bottom line and review tax deductions

Don't let valuable tax deductions and instant asset write-offs slip through the cracks – these are the hidden gems that can significantly save you money. While your accountant is your go-to ally for identifying deductible expenses, it’s wise to be informed yourself. 

Common deductions include home office expenses, vehicle costs, professional development, underused assets, excess stock and bad debts. Just remember the three golden rules for claiming: the expense must have been for your business; if it is for a mix of business and private use, you can only claim the business portion; and you must have records (receipts!) to prove it.

Pro tip: The ATO’s $20,000 instant asset write-off incentive lets you claim back 100% of a business purchase in the financial year, instead of depreciating it over four years. Just make sure to purchase before 30 June 2025.
 

5. Review your business obligations to stay compliant

Take a moment to check off your business obligations – insurance, GST, payroll, superannuation. Make sure you are across any Government-legislated changes (for example the superannuation guarantee, which rises from 11.5% to 12% on 1 July 2025). 

Confirm that all employee wages, entitlements and benefits are current, including leave balances, and any outstanding payments that need settling before EOFY. By doing so, you're not only remaining compliant but also safeguarding your business from future headaches.

Pro tip: Schedule a quarterly compliance check-in with your accountant to ensure you're always up to date with any legislative changes and helps you address potential compliance issues before they become costly problems.
 

6. Refresh your marketing strategy for the new financial year

EOFY isn’t just about numbers – it’s a fresh start. Use this time to revisit your marketing strategy. What worked? What didn’t? Maybe you want to update your website, or consider a new social media strategy. Plan tweaks and changes that align with your goals for the coming year.

Pro tip: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) on your marketing efforts. You can download a free template at business.gov.au.
 

7. Stay on track with and fill your calendar

Finally, map out a calendar with key tax dates for the new financial year. This proactive approach means you’ll be prepared and stress-free for the year ahead, which will make tax time even easier for the year ahead.

Pro tip: Use a digital calendar tool that is linked to your email to stay streamlined when setting alerts and reminders. Digital calendar events mean you can invite other team members or even your accountant – so everyone knows what is happening when.

EOFY doesn’t have to be a dreaded task. Embrace organisation, seek professional advice, stay informed and look forward to the new financial year with confidence. You’ve got this!