As the end of the financial year (EOFY) approaches, small business owners face one of the most critical periods in their business calendar. Proper preparation and a clear understanding of your taxation obligations can make a significant difference to your business’s financial health.
With the right strategy—and support from a qualified accountant—you can ensure compliance, reduce tax liability, and position your business for future success.
EOFY is not just about lodging your tax return. It’s an opportunity to review your business’s performance, tidy up your books, assess cash flow, and implement effective tax planning strategies. Small businesses should begin their EOFY preparations well in advance, ideally in the final quarter of the financial year, to avoid a last-minute scramble and potentially costly oversights.
One of the best investments you can make during this period is working closely with a registered accountant. Accountants do more than just file your tax return—they provide strategic advice, keep you compliant with changing tax laws, and help you uncover deductions and concessions you might not be aware of. For example, they can advise on immediate asset write-offs, prepaid expenses, and superannuation contributions that could lower your taxable income.
Before meeting with your accountant, it’s essential to have your records organised. Ensure all income and expenses are up to date, your payroll is reconciled, and outstanding invoices or bills are accounted for. Having cloud-based accounting software can streamline this process and give both you and your accountant real-time access to your financial data.
Top 5 Tax Tips for Small Business Owners
- Claim All Eligible Deductions
Don’t leave money on the table. Ensure you claim deductions such as operating expenses, business travel, home office costs, and depreciation of assets. - Review Your Asset Purchases
The Instant Asset Write-Off and temporary full expensing measures (if still applicable) allow businesses to deduct the full cost of eligible assets, which can significantly reduce your tax bill. - Contribute to Superannuation
Making additional super contributions before June 30 can reduce your taxable income and build retirement savings. Ensure contributions are made and received by the fund before EOFY. - Write Off Bad Debts and Obsolete Stock
Review your debtors and stock. Writing off bad debts or obsolete inventory before EOFY ensures they are deductible in the current tax year. - Keep Personal and Business Finances Separate
Avoid mingling accounts. Using dedicated business accounts and credit cards makes record-keeping easier and ensures you don’t miss eligible deductions.
Why You Need an Accountant on Your Side
Having a trusted accountant is not a luxury—it’s a necessity. Tax laws are complex and ever-changing, and small errors can lead to audits or penalties. An accountant ensures your returns are accurate and compliant, but more importantly, they offer proactive advice throughout the year to optimise your tax position.
They can assist with tax structuring, advise on whether to operate as a sole trader, company, or trust, and help you understand your GST, PAYG, and superannuation obligations. In essence, an accountant is a financial partner who not only ensures compliance but also empowers growth.
As EOFY nears, don’t go it alone. With preparation, sound advice, and the support of a qualified accountant, your business can close the financial year strong and step confidently into the next.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)