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2025 End of Financial Year Business Preparation

At this time of year, we find ourselves having regular discussions with clients about best business practice for 2025 End of Financial Year preparations. This can include end of year payroll, transitioning to cloud-based software for the first time, changing software providers, or simply reviewing data file accuracy.  A proactive approach and mindset are key attributes for a business owner, particularly with regards to profitability, ongoing business growth, improved business efficiencies and capacity. This is especially relevant in the lead-up to 2025 End of Financial Year – read on to find out what you can do between now and 30 June.

2025 End of Financial Year Data File Review

Accuracy, compliance and efficiency form the holy trinity of first-class bookkeeping. A once-a-year data-file “spring-clean” uncovers duplicate transactions, uncoded suspense items, lapsed GST registrations and misallocated payroll categories before they snowball into ATO queries. It’s also your best defence against cyber risks; archiving unused user logins and enabling two-factor authentication protects sensitive payroll and customer data under the Privacy Act.

• Reconcile every bank, credit-card and loan account to 31 May so June becomes a simple tidy-up rather than a forensic exercise.
• Match supplier statements to purchase-ledger balances and chase missing credits.
• Purge obsolete SKUs, close dormant cost centres and merge duplicate chart-of-accounts codes—clean data makes reports meaningful.
• Write off bad debts that have no realistic chance of recovery; the deduction is only available once the debt is actually written off.
• Find & Recode misstated GST codes or tracking categories.
• Back up the file locally and in the cloud before you make sweeping changes.

Refresh Your Forecasts & Budget

Forecasting isn’t crystal-ball gazing; it’s disciplined scenario-planning that turns unknowns into calculated risks. Start by rolling your current budget forward three months at a time, then overlay best-, base- and worst-case sales trajectories. Stress-test for variables outside your control—fuel prices, wage-award rises, currency swings—and quantify their impact on cash flow. Once the model is built, you can:

1. Identify funding gaps well in advance and negotiate finance while your balance sheet still looks healthy.
2. Plan tax strategy such as bringing forward asset purchases (instant asset write-off) or deferring income past 1 July.
3. Allocate resources toward growth projects with clear ROI rather than simply “what’s left in the bank”.

Modern tools like Float, Spotlight or Fathom integrate directly with Xero and MYOB, turning raw ledger data into rolling three-way forecasts (P&L, balance sheet, cash flow) at the click of a button. Be sure to check out our article here for a more detailed look at forecasting.

Business Improvement Planning

Technology, regulation and labour markets evolve quickly; what passed for best practice three years ago may now be a drag on productivity. A structured Business-Improvement Review every three to five years (or sooner in fast-moving industries) keeps you on the front foot.

• Goals & KPIs – Ensure your strategic objectives remain measurable, realistic and aligned with the company’s vision and mission.
• Process mapping & automation – Document critical workflows, identify bottlenecks and consider cloud applications or AI tools that can reduce manual effort.
• Resource allocation – Check that people, capital and SaaS subscriptions are directed toward tasks that genuinely drive growth or efficiency.
• Risk management – Update your register for emerging threats such as cyber-security, supply-chain fragility or legislative change.
• Stakeholder engagement – Keep staff and key suppliers in the loop. Involving the team in setting targets boosts accountability and morale.

McKinley Plowman’s Operating Rhythm service addresses the above issues and more, to ensure your internal operations effectively support your goals.

Compliance Checklist: Key Deadlines Before 30 June 2025

Payroll & Single Touch Payroll (STP)

• STP Phase 2 finalisation must be lodged by 14 July. Even if you ceased wages mid-year, you still need a “nil” finalisation.
• Super Guarantee rises to 12 % from the first pay run in July. Confirm the rate change flows through to every employee profile and payroll template.
• End-of-year payroll reconciliation—balance gross wages, PAYGW and super totals against general-ledger figures before you file.

Award-rate updates: Fair Work and Wageline release new award rates—often with little notice—effective 1 July. Download the current pay guides, compare them to your payroll settings and issue new employment letters where required. Underpayment cases rarely turn on intent—accuracy is everything.

Taxable Payments Annual Report (TPAR): Businesses in building, cleaning, road freight, IT or security must lodge a TPAR by 28 August. Capture contractor ABNs, invoice numbers, GST splits and payment dates as you go—leaving it until August invites mistakes.

Payroll tax thresholds: In WA you must register once payroll exceeds $83 333 a month or $1 million a year. Check if subcontractor payments are deemed wages for payroll-tax purposes, and factor future headcount plans into your forecast.

Other lodgements not to forget: Quarterly BAS for April–June (due 28 July, or 25 August through a tax agent).

• FBT Return (lodged 23 June if self-prepared, 21 June through a registered agent).
• Inventory stocktake for businesses with turnover above $10 million or material stock fluctuations.

Bookkeeping Tips & Tricks – EOFY Focus

Organise Financial Records: Separate business and personal banking, then automate daily bank feeds so nothing slips through the cracks. Keep finance agreements, insurance policies and closing-balance statements in a single, well-named cloud folder—your accountant can’t read minds, but they can read PDFs.

Reconcile Accounts Regularly: A monthly reconciliation habit turns year-end into a formality. Matching June closing balances is painless when the prior 11 months already tick and tie to the cent.

Track Income, Expenses & Aged Debtors: Automate invoice reminders, chase slow-paying customers before 30 June and export aged-debtor reports for your debt-collection agency if necessary. Photograph receipts or email them straight to Hubdoc/Dext so substantiation is always one click away.

Prepare for Tax Filing: Collect evidence for every deduction—logbooks, motor-vehicle finance contracts, R&D expenditure, entertainment receipts—so you can defend your position if the ATO comes knocking. Discuss tax-planning opportunities with your adviser in May, not after 30 June.

Automate Where Possible: Cloud platforms now integrate directly with the ATO, banks and e-commerce sites. Talk to us before committing; what suits a café with high-turnover EFTPOS sales may be overkill for an online consultancy with Stripe and PayPal feeds.

Review & Adjust Your Budget: Compare year-to-date actuals with the original budget and explain variances: price rises, supplier delays, extra headcount. Use these insights to build a FY 2026 budget that reflects reality, not guesswork.

Seek Professional Advice & Training: Don’t wait until your compliance deadline to ask for help. Periodic check-ins keep your systems and people up to date. Most cloud software offers free webinars; take advantage so you’re ready for the next update.

2025 End of Financial Year – The Time to Act is Now!

30 June is right around the corner, and we understand that as a business owner, you have many competing demands (particularly at this time of year). Our team of specialists across the firm can assist with the preparation items we have outlined above. So, if you’re time-poor but are ready to prepare your business for success at tax time and into the future, contact us today on 08 9301 2200 or via our website, and we will be more than happy to assist.

written by:

Claire Ginbey

Heading up our CFO2GO team, Claire's skills as a SME Business Specialist and cloud accounting specialist have developed in line with advancements in technology and best practice; allowing her to maintain the highest service standards for clients.

Claire's passion for growing small businesses and helping them achieve sustained success is what motivates her to continuously develop her skills and knowledge. Her clients appreciate her considered and dedicated approach to working with them, and her personal oversight across their operations and financial performance.