EOFY 24/25 will be a busy time for our firm, and the end of the financial year is a critical time for Australian businesses to review, strategise, and comply. In our latest edition, we provide you with a quick guide on the key steps to maximise deductions, meet deadlines, and plan for growth in 2025/26.
1. Financial Health Check & Compliance
Our firm recommends starting with a thorough review of your financial position. This will likely involve reconciling all your accounts, analysing profit and loss trends, and identifying key areas for improvement. For inventory-based businesses, we recommend you conduct a physical stocktake to meet ATO requirements and assess stock value.
Key takeaways:
- Reconcile bank and credit card accounts.
- Review accounts receivable by writing off bad debts.
- Update fixed asset registers and their depreciation.
2. Smart Tax Planning
As with many key business decisions, timing is everything. It is wise to investigate whether bringing forward deductible expenses (like insurance or equipment leases) is favourable and potentially deferring income where possible (deferring income is beneficial in shifting income to the new Financial Year, reducing your taxable income in the current year, and potentially even moving you into a lower tax bracket). Leveraging the instant asset write-off for eligible purchases is also a potential win. Updating your calendar to record deadlines that shift each year is a simple yet effective way to never miss an important deadline. One to keep in mind this year is the Super Contribution, this must be processed by June 27.
- Review Work-from-home claims (fixed rate or actual cost method).
- Review Vehicle and Travel Expenses.
- Professional development costs (this can be broken down further, refer to the ATO for details).
3. Superannuation & STP Updates
Keeping Superannuation in mind, it is important to remember the Super Guarantee (SG) rate rises to 12% from July 1. Allowing time to ensure your payroll systems are updated to reflect this adjustment will save headaches later on. At Roger Boghani, we specialise in Business Services and can support you to navigate the compliance of both Super Annuation and Single Touch Payroll for your business.
- Finalise payroll data by July 14
- Verify employee details, allowances, and bonuses
4. Business Structure & Strategy Review
EOFY is the ideal time to assess whether your business structure (sole trader, company, trust) still aligns with your goals. It is wise to plan trust distributions, review accounting software, and streamline operations for 2025/26 to ensure when the new Financial Year arrives, you are set up for success. If you’re unsure whether your business structure meets your needs, we’re here to help and offer qualified advice regarding the best business structure for you.
Final Thoughts: Act Now to Secure Your Financial Year
The EOFY isn’t just about compliance, it’s a strategic opportunity to optimise your tax position, streamline operations, and set your business up for success in 2025/26. By addressing these key areas now, from deductions and superannuation to STP reporting and structural reviews, you’ll avoid last-minute stress and uncover potential savings.
Don’t wait until June 30; proactive planning ensures you meet deadlines and capitalise on every available advantage. We’re here to work with you, to achieve the best outcomes for you and help you grow your business. If you’re looking for tailored advice and customised support, we’re here to use EOFY as an opportunity to review your goals and plan for a successful 25/26.
