With the end of financial year approaching, many small business owners are thinking about tax, profit, cash flow and what the next 12 months might look like. But EOFY should not be treated as a last-minute paperwork scramble. It is one of the best opportunities of the year to sit down with your accountant, review how your business is performing, and make informed decisions before the clock ticks over to the new financial year.
Tax advice matters. The right advice can help you avoid costly mistakes, improve cash flow, understand what you can and cannot claim, and make smarter decisions for your business structure, wages, super, debt, assets and growth plans.
Top 5 tips for preparing for a conversation with your accountant
- Get your records organised before the meeting
Your accountant can give much better advice when your information is clean, current and complete. Reconcile your bank accounts, update your accounting software, check invoices, upload receipts and make sure your expenses are correctly categorised. The ATO states business records generally need to be kept for five years and must explain all transactions clearly. - Review your profit, not just your sales
Strong sales do not always mean a strong business. Before meeting your accountant, look at your gross profit, net profit, wages, overheads and debt repayments. Ask: are we actually making money, or just staying busy? This gives your accountant a clearer picture of where tax planning, pricing, cost control or structure changes may be needed. - Identify major purchases, loans or asset changes
If you bought equipment, vehicles, technology, tools or other business assets during the year, make a list before the meeting. Also note anything you sold, financed, leased or wrote off. Timing can matter, and your accountant can explain how different purchases or finance arrangements may affect deductions, depreciation and cash flow. - Check debtors, creditors and cash flow
Review who owes you money, what you owe suppliers, and whether any invoices may be difficult to collect. Cash flow is often where small businesses feel the most pressure. The ATO recommends using a cash flow budget or projection to help ensure businesses can meet tax and other obligations. - Prepare questions, not just documents
Do not treat the meeting as simply “handing over the books.” Ask your accountant what you could do better. Should you review your business structure? Are you paying yourself correctly? Are your tax instalments appropriate? Are there deductions you are missing? Are your systems strong enough? A good accountant can be more than a compliance provider — they can be a strategic business adviser.
Top 5 tips for starting the new financial year well
- Set a clear budget for the year ahead
Start the new financial year with a simple but realistic budget. Include expected sales, expenses, wages, tax, loan repayments and owner drawings. This helps you make decisions based on numbers, not guesswork. - Build tax into your cash flow
One of the biggest mistakes small business owners make is treating tax as a surprise. Set money aside regularly for GST, PAYG, income tax and super obligations. Your accountant can help estimate what should be put aside so tax time does not become a cash flow crisis. - Improve your systems early
If last year was messy, do not repeat it. Use accounting software properly, connect bank feeds, store receipts digitally and review reports monthly. The ATO also provides tools and support to help small businesses meet their tax and super obligations. - Review pricing, wages and profitability
The start of the year is a great time to check whether your pricing still works. Costs may have increased, margins may have tightened, or your service offering may have changed. Your accountant can help you understand which products, services or clients are actually profitable. - Book regular check-ins
Do not wait until next EOFY to speak to your accountant again. A quarterly check-in can help you stay on top of tax, cash flow, growth plans and compliance. Small adjustments throughout the year are often far easier than major corrections at the end.
EOFY is not just about lodging a return. It is about understanding your business, making better decisions and starting the new financial year with confidence. With the right preparation and the right tax advice, your accountant can help you turn financial year-end from a stressful deadline into a valuable planning opportunity.
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.
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