5 Things to Do Right After EOFY: Your Small Business Checklist

The end of the financial year (EOFY) can seem like finishing a lengthy run. Even though you've finished your tax return, balanced your accounts, and met your reporting requirements, your work is far from over. After the end of the financial year (EOFY), small business owners in Adelaide and all around Australia have the perfect chance to plan forward and make their finances better for the next year.

We've put together a small business End of Financial Year Checklist to assist you in making the most of this time. Here are the top five things to do shortly after the end of the fiscal year (EOFY):

1. Check the health of your finances.

With your books now closed, please take a moment to review the status of your finances. While reviewing your profit and loss statement is important, it's equally crucial to understand the insights your numbers provide.

Important areas to look at:

• Are your margins healthy when you compare your income to your expenses?
• Cash flow trends: Have you ever encountered any challenges with cash flow?
• Are there patterns of late payments for outstanding invoices or debts?
• Tax situation: Did you pay too much or too little in taxes?

By looking at these numbers, you may get a quick look at the financial health of your organisation and find problems before they get worse. If you work with a trained accountant like Ashmans Accounting in Adelaide, they can help you dig deeper and find ways to boost profits or decrease costs that aren't essential.

2. Change your budget and predictions.

Now that you've looked at how well you've done with money in the past, it's time to look ahead.

Use real numbers from the last financial year to change your budgets and cash flow projections for the next one. This is especially critical for small enterprises that need to be able to adapt quickly to changes in the market.

Think about

• Trends in sales by season.
• Effects of inflation and interest rates
• Future business costs, such as hiring more people or buying new equipment
• Possible tax breaks and deductions

Being proactive with your finances will help you make better business decisions and avoid surprises later on.

3. Make copies of your records and organise them.

EOFY is the best time to make sure that all of your financial data are safe and easy to get to.

Things to do for EOFY recordkeeping:

• Keep both digital and paper copies of tax records, receipts, and payroll reports.
• Make copies of your accounting software and cloud-based services.
• Keep financial statements in a safe place for the amount of time required (usually five years in Australia).
• Make sure your data meets ATO and privacy rules.

Having well-organised financial records is important not just for ATO audits but also for making business choices, getting a loan, or selling your business in the future.

4. Look at your business structures and tax plans.

Your present business structure may not be the best for taxes or protection as your firm expands.

After the end of the fiscal year is a wonderful time to:

• Think about the structure of your firm again (sole trader, company, trust, etc.).
• Find out if restructuring could help protect your assets or save you money on taxes.
• Look into the tax breaks that small firms can get, like the quick asset write-off and the small business CGT reductions.
• Plan for contributions to your superannuation and other advantages.

Your accountant can assist you in looking over your setup and suggesting improvements that will help you reach your business goals. Ashmans Accounting closely collaborates with Adelaide businesses to ensure their long-term success.

5. Make new goals and key performance indicators (KPIs).

EOFY is not only the end of the year for taxes; it's a big deal. Use it as a chance to figure out where you want your business to go.

Setting goals after the end of the year should include

• Goals for increasing revenue
• Goals for getting new customers or keeping old ones
• Goals for cutting costs or raising margins
• Plans for developing employees
• Getting into new markets or services

Make these goals into Key Performance Indicators (KPIs) and check them often during the year. Clear goals help keep you on track and accountable.

Bonus Tip: Schedule Your Tax Planning Session Early

Don't put off tax planning until the end of the next financial year. You will have extra time to:

Get the most out of your deductions.

Make smart decisions about where to put your money.

Plan your cash flow around your tax bills.

Ashmans Accounting helps Adelaide businesses all year round stay on top of tax changes and compliance needs. Set up a session early in the year so you can make strategic choices with confidence.

Last Thoughts

While completing your tax return may appear to be the final step, it actually marks the beginning of a fresh financial journey. By going through this checklist after the end of the fiscal year, you'll start the year with a clear mind, confidence, and a strong base for growth.

Need help putting your small business's end-of-year checklist into action?
For experienced guidance that fits your business goals, get in touch with Ashmans Accounting, Adelaide's preferred accounting firm.

‍