1. Reconcile All Bank Accounts

Bank reconciliation should be one of the first items on your EOFY checklist.

The objective is simple: the transactions recorded in your accounting system should agree with the relevant bank and financial records.

Review every business bank account and look for:

• Unmatched transactions
• Missing deposits
• Unrecorded payments
• Duplicate transactions
• Incorrect transfers
• Old unreconciled items
• Incorrect transaction dates
• Unexplained differences

Do not assume that a bank feed means everything has been reconciled automatically.

A transaction appearing in your accounting software does not necessarily mean it has been correctly classified or matched.

Current EOFY guidance recommends completing reconciliations before 30 June so the accounts provide a reliable starting point for year-end reporting.

Quick check

Ask:

Does the balance in the accounting system agree with the actual financial statement at 30 June?

If not, investigate the difference before finalising the accounts.

2. Review Accounts Receivable

Next, look at money that customers still owe the business.

Run an aged receivables report and review outstanding invoices.

Pay particular attention to:

• Overdue invoices
• Long-outstanding customer balances
• Duplicate invoices
• Credit notes
• Payments allocated incorrectly
• Customers who are unlikely to pay
• Invoices that have been issued but not recorded correctly

Following up overdue invoices can improve cash flow, but year-end is also a useful time to identify debts that may require further accounting or tax consideration.

Do not automatically write off an invoice simply because it is old. The appropriate treatment depends on the circumstances and applicable tax and accounting rules.

3. Check Accounts Payable

Money owed to suppliers deserves the same attention.

Review your accounts payable report and make sure all relevant supplier bills for the financial year have been recorded.

Look for:

• Missing supplier invoices
• Duplicate bills
• Incorrect amounts
• Old supplier balances
• Credit notes that have not been applied
• Payments allocated to the wrong supplier
• Expenses recorded in the wrong period

A clean creditors ledger gives you a better picture of what the business actually owes.

It can also help prevent expenses from being overlooked during the year-end review.

4. Review GST and BAS Records

If your business is registered for GST, review your GST records before finalising the year.

Check that:

• GST has been coded consistently
• BAS figures agree with the accounting records
• Relevant BAS lodgements are recorded
• Adjustments are documented
• Unusual GST transactions have been reviewed
• Supporting records are available

The Business Activity Statement can include GST, PAYG and other tax obligations depending on the business’s circumstances.

Do not make a year-end adjustment simply because it changes the tax result. Any adjustment should have a proper accounting and tax basis and, where necessary, be discussed with your accountant or registered tax professional.

5. Review Payroll and Single Touch Payroll

Payroll should be carefully reviewed at year-end.

Check that:

• All pay runs for the financial year have been processed
• Wages agree with payroll reports
• PAYG withholding has been recorded correctly
• Superannuation records are complete
• Leave balances have been reviewed where relevant
• Employee details are correct
• STP information is ready for finalisation

For FY2025–26, employers using Single Touch Payroll generally needed to finalise their STP information by 14 July 2026.

There is also an important change for the new financial year: Payday Super commenced from 1 July 2026, changing the way employers manage superannuation payments going forward.

That means EOFY is not only about closing the previous year. It is also a useful time to check whether payroll processes are ready for the new financial year.

6. Check Superannuation Obligations

Employers should review superannuation records carefully.

For the financial year ending 30 June 2026, check that required superannuation contributions have been properly processed and that relevant payment records are available.

The transition to Payday Super from 1 July 2026 makes payroll and superannuation processes even more important for the new financial year.

Keep evidence of relevant payments and investigate any discrepancies before closing the books.

If your business uses an outsourced payroll provider, this is also a good time to confirm that the payroll workflow and reporting arrangements are ready for the new financial year.

7. Review Fixed Assets and Equipment

Do not overlook equipment and other business assets when reviewing your accounts.

Check your fixed asset register against actual purchases and disposals during the year.

Review:

• Computers and technology
• Office equipment
• Vehicles
• Machinery
• Furniture
• Tools
• Business improvements
• Other significant assets

For each significant asset, check that you have appropriate supporting information such as the purchase date, cost, invoice and relevant business-use information.

Tax treatment can vary depending on the asset, business structure and applicable rules. If you are considering an asset purchase specifically for tax purposes, speak with your tax adviser before making the decision.

8. Review Business Expenses

EOFY is a good time to review your expense accounts rather than simply accepting the totals shown in your accounting software.

Look for:

• Unusual increases
• Large one-off expenses
• Personal transactions
• Duplicate expenses
• Incorrectly classified purchases
• Missing receipts
• Expenses that need further explanation

Supporting records are particularly important.

The ATO states that businesses need to keep records supporting their business expenses, and relevant business records generally need to be retained for at least five years.

Digital record keeping can make this process easier, particularly when invoices and receipts are attached directly to accounting transactions. The ATO encourages businesses to use digital record keeping where appropriate.

9. Review Loans and Finance Accounts

If your business has loans, leases or other finance arrangements, check the balances and supporting statements.

Review:

• Loan balances
• Interest paid
• Principal repayments
• New finance agreements
• Loan-related fees
• Asset finance
• Director or shareholder loans where relevant

Make sure transactions have been recorded in the appropriate accounts.

Loan principal and interest can have different accounting and tax treatments, so avoid treating the entire repayment as a business expense without checking the applicable rules.

10. Check Inventory and Stock

Businesses that hold inventory should perform an appropriate year-end stock review.

Depending on the business, this may involve checking:

• Stock quantities
• Stock values
• Damaged goods
• Obsolete stock
• Goods received but not yet recorded
• Goods sold but not yet processed
• Stock adjustments

Inventory can have a material effect on financial results, so significant discrepancies should be investigated rather than simply adjusted to make the accounts balance.

11. Review Prepayments and Accrued Expenses

Some expenses relate to more than one accounting period.

Examples can include:

• Insurance
• Software subscriptions
• Rent
• Professional services
• Annual memberships
• Other prepaid services

Similarly, a business may have received services before 30 June but not yet received or recorded the supplier invoice.

These transactions may require accounting adjustments.

Prepayment rules can also affect tax deductions, so do not assume that an expense paid before 30 June is automatically fully deductible in the current financial year. The ATO notes that specific rules can apply to prepaid business expenditure.

12. Review the Profit and Loss Statement

Once the accounts have been reconciled, review the profit and loss statement.

Do not just look at the final profit figure.

Compare the current year with:

• Previous financial year
• Budget
• Forecast
• Monthly results
• Major business milestones

Ask questions such as:

• Has revenue increased or decreased?
• Which expenses changed significantly?
• Are margins improving?
• Are labour costs rising?
• Has rent or technology spending changed?
• Are there unusual one-off transactions?
• Does the result match what you expected?

A year-end profit and loss statement should help you understand the business, not simply satisfy a reporting requirement.

13. Review the Balance Sheet

The balance sheet deserves the same level of attention.

Review:

• Cash
• Receivables
• Inventory
• Fixed assets
• Loans
• Payables
• GST and tax balances
• Employee-related liabilities
• Equity

A balance sheet can sometimes reveal issues that are not obvious from the profit and loss statement.

For example, a business may report a healthy profit while still carrying a large amount of unpaid customer invoices.

14. Check Your Business Records

A year-end review should also include your supporting records.

Make sure important documents are organised and accessible.

These may include:

• Sales invoices
• Purchase invoices
• Receipts
• Bank statements
• Payroll records
• Loan statements
• Asset invoices
• BAS records
• Contracts
• Insurance documents
• Expense documentation

The ATO allows business record systems to be digital or manual, provided the relevant record-keeping requirements are met.

Good records make it easier to respond to questions later and reduce the need to reconstruct transactions months after they occurred.

15. Prepare Key Financial Reports

Before sending your records to your accountant or tax professional, generate the reports they are likely to need.

Common reports include:

• Profit and loss statement
• Balance sheet
• Trial balance
• General ledger
• Aged receivables
• Aged payables
• Bank reconciliation reports
• Fixed asset register
• Payroll reports
• GST/BAS reports

The exact requirements will depend on your business structure and accounting engagement.

The purpose is to make sure everyone is working from the same set of numbers.

16. Review Tax Planning Opportunities

EOFY is also a natural time to discuss tax planning.

This does not mean spending money simply to obtain a deduction.

Instead, review your financial position and discuss legitimate tax considerations with your accountant or tax adviser.

Topics may include:

• Business income
• Deductible expenses
• Asset purchases
• Depreciation
• Bad debts
• Stock
• Prepayments
• Business structure
• Tax instalments
• Other relevant year-end adjustments

Tax planning works best when it is based on accurate financial information.

That is why bookkeeping and reconciliation should happen before the tax discussion rather than after it.

17. Check Your Accounting Software

Before moving into the new financial year, review your accounting system.

Check that:

• Bank feeds are working
• Users have appropriate access
• Unnecessary users have been removed
• Payroll settings are current
• Tax rates are correct
• Recurring transactions are still relevant
• Chart of accounts is organised
• Important reports can be generated
• Documents are backed up or stored appropriately

Do not make major accounting-system changes without understanding how they could affect your historical records or reporting.

18. Review Your Business Insurance

Insurance may not appear on a traditional accounting checklist, but year-end is a useful point to review whether your business records and insurance arrangements still reflect the business.

Check:

• Policy renewal dates
• Premium payments
• Business assets
• Vehicles
• Equipment
• Professional risks
• Changes to business activities

Businesses with specific insurance requirements can also review their broader insurance broker services and discuss whether their existing arrangements remain appropriate.

19. Review Industry-Specific Records

Every business has different year-end requirements.

For example, a strata-related business may have additional records involving levies, owners’ corporation transactions, maintenance costs and supplier payments. Businesses operating in this area may also need broader strata management services to support their administrative and operational requirements.

Similarly, professional services, legal businesses and NDIS providers may have additional records or compliance considerations.

If your business operates in the legal sector, legal process outsourcing services may support certain administrative workflows.

For NDIS providers, NDIS outsourcing services can support selected operational and administrative processes.

The key is to identify the records that are specific to your business model rather than relying on a generic checklist alone.

20. Create a Clean Handover Package for Your Accountant

Once the internal review is complete, prepare a clear package for your accountant or tax professional.

Financial reports

• Profit and loss
• Balance sheet
• Trial balance
• General ledger

Reconciliations

• Bank
• Credit cards
• Loans
• GST
• Payroll

Supporting schedules

• Fixed assets
• Debtors
• Creditors
• Inventory
• Loans
• Other relevant schedules

Supporting documents

• Invoices
• Receipts
• Statements
• Contracts
• Other requested records

Also prepare a short list of unusual transactions or questions.

A one-page summary explaining significant changes can sometimes save considerable time during the review.

Frequently Asked Questions

When does the Australian financial year end?

The Australian financial year generally runs from 1 July to 30 June. The financial year ending 30 June 2026 covered 1 July 2025 to 30 June 2026.

What should a business do before 30 June?

Businesses should generally reconcile financial accounts, review receivables and payables, check GST and payroll records, review assets and expenses, organise supporting documents and prepare relevant financial reports.

Should bank accounts be reconciled before EOFY?

Yes. Reconciling bank accounts helps ensure the accounting records agree with the underlying bank information and provides a cleaner basis for year-end reporting.

How long should Australian businesses keep tax records?

The specific retention period can depend on the type of record and circumstances. The ATO states that business expense records generally need to be kept for five years from when they were prepared or obtained, or from completion of the relevant transaction or act.

What payroll tasks need to be completed after 30 June?

For employers using STP, the financial-year information generally needs to be finalised by 14 July. Other payroll and superannuation obligations depend on the business and the relevant reporting arrangements.

Has superannuation changed for Australian businesses in 2026?

Yes. Payday Super commenced from 1 July 2026, changing the timing of employer superannuation payments. Employers should ensure their payroll and payment processes are set up appropriately for the new requirements.

Should I buy equipment before 30 June for a tax deduction?

Not simply for the deduction. Whether an asset receives a particular tax treatment depends on the applicable rules and your circumstances. Discuss significant purchases with your tax adviser before making a decision.

Can bookkeeping help with EOFY?

Yes. Up-to-date bookkeeping makes it easier to reconcile accounts, review financial performance, locate supporting documents and prepare information for your accountant.

Do all businesses need the same EOFY checklist?

No. The checklist should be adapted to the business structure, industry, accounting method, GST registration, payroll arrangements and other circumstances.

When should EOFY preparation begin?

Ideally, preparation should happen throughout the year. A more detailed EOFY review can begin several weeks before 30 June, leaving time to identify missing documents, correct errors and resolve outstanding issues. Current EOFY guidance similarly recommends starting reconciliation well before 30 June.