1) Start the new financial year with ‘clean books’

The best EOFY strategy is boring: don’t carry chaos into the new year.

Before July gets busy, aim to have these sorted:

Bank accounts reconciled - not ‘mostly’ reconciled

Credit cards reconciled - every card, every month

Loan balances matched to lender statements - principal vs. interest coded correctly

Clearing accounts cleared - payroll clearing, undeposited funds, suspense accounts

Old transactions reviewed - duplicates, uncoded items, GST

If your reports don’t match reality, everything becomes harder: BAS, payroll, cash flow decisions, and yes - your accountant’s job too.

2) Make payroll your strongest compliance area - not your riskiest

Payroll is one area where small mistakes can quickly turn into expensive problems. If your systems are not properly set up, tax, super, award compliance and even your employees’ trust can be affected.

Do this sometime in May or early June:

Minimum Award rates increase and are published just before the end of the financial year, however, it helps to review salaries early and prepare a process and schedule a time to make the changes, as the new Award rates apply to the first full pay run in July

Check employee classifications and award levels - roles change over time; your payroll setup should too

Confirm casual arrangements – ensure they still meet the legal definition of casual employment

It’s time to get proactive so you’re not having to ‘fix’ issues later.

3) Prepare now for Payday Super (starts 1 July 2026)

This is ‘the big one’ for employers heading into the new financial year.

Payday Super starts 1st July 2026. This means you’ll need to make super contributions for eligible employees on each payday, rather than relying on quarterly cycles.

Bookkeeping impact (the real-world version):

Your cash flow could take a hit if you’re not fully prepared

You’ll need tighter payroll processes and fewer ‘we’ll fix it later’ adjustments

You’ll want to confirm your software and super payment method are ready

Important note: The Small Business Superannuation Clearing House (SBSCH) is closing at midnight on 30thJune 2026, as part of Payday Super reform. The ATO recommends transitioning to an alternative provider as soon as possible. Don’t wait until July to discover your process doesn’t work.

Use May and June to map out how super will be paid on each pay cycle and what that will do for your cash flow. If your bookkeeping software doesn’t include automatic Super payments, check in with WestBAS, as soon as possible, for alternatives to the SBSCH.

4) Ensuring BAS compliance – reconciling with ATO lodgements

Your BAS is only as good as your bookkeeping behind it.

If you want fewer amendments, build simple habits:

Reconcile bank accounts regularly – today’s common bookkeeping programs allow for easy reconciliation, so ensure you get the best out of your software

Review GST codes on recurring transactions - subscriptions are common offenders

Check for mis-coded items - GST-free vs taxable vs input-taxed

Make sure sales and purchases are recorded in the right period

EOFY is a great time to do a full-year GST sanity check, especially if your business has made big changes: new products, new billing model, new software, new staff.

5) Stock: Don’t let inventory quietly wreck your numbers

If you hold stock, a stock take at EOFY isn’t optional. A stock take affects:

Cost of goods sold

Gross profit

Taxable income

Decision-making - pricing, purchasing, cash tied up

For the upcoming EOFY:

Plan to do a stock take at 30 June - or as close as is practical

Write off damaged or obsolete stock

Make sure your accounting system reflects what you actually have

If your stock system and your accounting file don’t agree, you can never fully trust your financial reports.

6) Debtors: turn ‘owed to you’ into actual cash

EOFY is a natural time to look at accounts receivable and ask one blunt question:

‘Is this money coming in or not?’

Bookkeeping actions that make a difference:

Send reminders or make a call for overdue invoices

Fix invoice issues that stop payment - missing PO, wrong contact, unclear terms

Review repeat-late payers and tighten terms

If a debt is truly uncollectable, talk to your bookkeeper about the correct way to write it off

Bad debts are annoying, but more than that, they distort your financial reporting and can create false confidence.

7) Expenses and subscriptions: assess ‘essential’ regular outgoings

Most SMEs don’t overspend in dramatic ways, but small recurring payments can be overlooked.

Prepare for EOFY with a quick subscription and direct debit audit:

What are you paying monthly that no one uses?

Are there duplicate tools doing the same job?

Are staff expenses being coded consistently?

Are personal items being kept out of the business file?

This is one of the fastest ways to improve cash flow.

8) Set FY27 budgets you’ll actually look at

Budgets aren’t created to perfectly predict the future, but they do give you a benchmark to work to.

We recommend a simple system:

Set a FY27 budget (even a basic one)

Review budget vs. actuals on a quarterly basis

Use the results to adjust pricing, staffing, spending or sales targets

If you only look at your numbers once a year, you won’t be making the most of your accounting software – remember, consistently knowing your numbers will lead to better business decisions.

9) Preparing for your EOFY deadline - so nothing sneaks up

Every business is different, but these are the areas where you need to be most aware:

Super obligations - timing matters for deductions and compliance

STP finalisation - so employees can access their income statement in myGov

BAS/IAS lodgements & reconciliation

Payroll tax reconciliation - where applicable

TPAR - if you pay contractors in industries that require it

If you want less stress, create a checklist and calendar.

We hope this information is helpful in preparing you for EOFY – so it doesn’t have to be a scramble. Aim for consistency and preparation: reconcile regularly, stay payroll compliant and build a process for Payday Super.

And don’t forget – we’re here to help. If you’d like support getting your bookkeeping up to date, setting up a clean EOFY process, or preparing for Payday Super, WestBAS can help you make it manageable.