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EOFY Preparation Guide for Australian Small Businesses

Everything you need to do before 30 June to close your books cleanly, meet your obligations, and avoid last-minute stress.

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Most EOFY problems are not caused by complicated tax issues. They are caused by leaving things too late. Bank accounts that have not been reconciled since February, invoices sitting in a folder somewhere, super that was never checked. The earlier you start, the less it costs you to fix. This guide covers what to have sorted before 30 June so your tax return can be prepared quickly and accurately.
Time remaining until 30 June 2026
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Financial year ends 30 June 2026. Tax returns open from 1 July 2026.

Step-by-Step

Your EOFY Preparation Checklist

Click each step to expand. Work through these before 30 June, not after.

1
Reconcile all bank accounts Do this first

Your accountant or bookkeeper cannot prepare an accurate tax return from unreconciled books. Everything else on this list depends on your accounts being clean first.

  • Reconcile every bank account, credit card and loan account up to 30 June in Xero
  • Clear any unreconciled transactions sitting in the bank feed - do not leave them for later
  • Make sure every transaction has been coded to the correct account
  • Reconcile your credit card statements against what is in Xero - missing credit card expenses are one of the most common sources of missed deductions
  • If you are behind on your reconciliation, our catch-up bookkeeping service can get your books up to date quickly
2
Review your accounts receivable and payable

Before 30 June, review what you are owed and what you owe. This affects both your tax position and your cash flow going into the new financial year.

  • Chase any outstanding invoices - money collected before 30 June counts as this year's income
  • Review your debtors list and identify any bad debts that are unlikely to be collected
  • Bad debts written off before 30 June may be deductible - ask your accountant before writing them off
  • Make sure all supplier bills and expenses have been entered into Xero and are up to date
  • Reconcile your accounts payable - confirm the balance matches what you actually owe suppliers
3
Gather all income records Critical

All income earned during the financial year needs to be recorded, regardless of how it was received or which account it went into.

  • Confirm all invoices raised during the year are in Xero and allocated correctly
  • Check that all payments received - including cash, bank transfers, and card payments - have been recorded
  • If you received any government grants or payments during the year, confirm they are recorded
  • Check for any income that may have been deposited into a personal account rather than the business account - it is still business income and needs to be reported
  • If you have multiple revenue streams, check that each one has been captured separately in Xero
4
Collect and organise your expense records Critical

Missed expenses mean a higher tax bill. This is where most business owners leave money on the table - not through bad luck but through disorganisation.

  • Collect all receipts and invoices for business expenses incurred during the year
  • Check your personal bank accounts and credit cards for any business expenses paid from personal funds - these are still deductible, they just need to be captured
  • Make sure you have valid tax invoices (not just receipts) for any purchase over $82.50 where you want to claim a GST credit
  • Check your vehicle logbook if you use your car for work - if you do not have one, you are limited to the cents per kilometre method capped at 5,000 km
  • Gather records for home office expenses if you work from home - electricity, internet, phone, and a record of hours worked from home during the year
  • Check for any subscriptions, memberships or software licences that renewed during the year
5
Review your fixed assets

If your business has purchased or disposed of any equipment, vehicles or other assets during the year, these need to be recorded correctly in Xero.

  • List any new assets purchased during the year - computers, tools, equipment, vehicles
  • Note the purchase date, cost, and whether GST was paid on each item
  • Record any assets that were sold or disposed of during the year
  • Check whether the instant asset write-off may apply to any purchases made this year - ask your accountant before 30 June as this is time-sensitive
  • Make sure large asset purchases are not coded as expenses in Xero - they need to be set up as fixed assets
6
Check your payroll is complete If you have employees

EOFY payroll tasks have fixed deadlines. Missing them causes problems for your employees as well as your business.

  • Confirm all pay runs for the year have been processed and finalised in Xero Payroll
  • Check that super has been paid and received by each employee's fund for every quarter of the year
  • After your last pay run for the year, finalise your STP data in Xero Payroll by 14 July - your employees cannot lodge their own tax returns until you do this
  • Reconcile your payroll figures - total wages, PAYG withheld, and super - against what has been reported through STP
  • Check that leave balances in Xero match what employees have actually accrued and taken
  • If your employment contracts include super in the total package, confirm the split is correct at the current 12% rate
7
Lodge your final BAS for the year GST registered

If you are registered for GST, your Q4 BAS covers the period 1 April to 30 June. Getting this right requires your books to be fully reconciled first.

  • Reconcile your accounts before preparing Q4 BAS - your GST figures will be wrong if transactions are missing
  • Check that all sales and expenses for April, May and June have been coded correctly in Xero
  • Confirm PAYG withholding for the quarter matches your payroll records
  • Lodge Q4 BAS by 28 July (or later if AffordBooksTax lodges as your registered agent)

For a complete BAS preparation guide, see our BAS lodgement checklist.

8
Run your EOFY reports in Xero

Once your books are reconciled, run these reports in Xero and review them before sending anything to your accountant. Catching errors yourself is faster and cheaper than having your accountant find them.

  • Profit and Loss report for the full financial year - does the net profit make sense relative to the year you have had?
  • Balance Sheet as at 30 June - check that assets, liabilities and equity look right
  • Aged Receivables - confirm the balance matches what you are actually owed
  • Aged Payables - confirm the balance matches what you actually owe
  • Bank Reconciliation Summary - confirm all accounts are fully reconciled to 30 June
  • GST Audit Report - review for any unusual or large GST items before lodging BAS
9
Send everything to AffordBooksTax

Once your books are clean and your records are gathered, let us take it from there. The more complete your information, the faster we can turn your return around.

  • Grant Xero Advisor access to us so we can access your file directly
  • Complete and return the tax return checklist we send you - include amounts and upload supporting documents where requested
  • Flag any unusual transactions, large purchases, or changes in your business structure that occurred during the year
  • We aim to have your return ready for review within 1 to 2 weeks of receiving everything we need

Deadlines

Key EOFY Dates to Know

Mark these in your calendar before 30 June arrives.

Date What happens Who it affects
30 June Financial year ends. Last day to record deductions for FY2025-26. All businesses
14 July STP finalisation deadline in Xero Payroll. Employees need this to lodge their own tax returns. Businesses with employees
28 July Q4 BAS due (standard deadline). Q4 super payment due. GST registered businesses, all employers
31 October Tax return deadline for individuals and sole traders who lodge themselves. Sole traders lodging without an agent
Extended Extended tax return deadline when lodged through AffordBooksTax as your registered agent. All ABT clients
Note: Company and trust returns lodged through a registered tax agent are generally due 28 February the following year. Contact us early to make sure you are on our lodgement schedule and eligible for the extended deadline.

Watch Out For

Common EOFY Mistakes That Cost Small Businesses Money

These are the most avoidable problems we see every year.

Starting too late

Books that have not been touched since March take time to fix. Starting in May gives you room to find and resolve problems before 30 June.

Missing personal account expenses

Business expenses paid from a personal account are still deductible. Not capturing them is one of the most common ways small business owners overpay tax.

No records to support deductions

A deduction without supporting evidence cannot be claimed. If you cannot find the receipt or invoice, the ATO will not accept the claim.

Missing the STP finalisation deadline

STP must be finalised in Xero Payroll by 14 July. Until then, your employees cannot access their income statements to lodge their own tax returns.

Uncoded or miscoded transactions

A transaction sitting in an uncategorised account, or coded to the wrong account, distorts your profit and loss and can cause both missed deductions and overstated income.

Sending incomplete information

The most common cause of delays in getting your return prepared is incomplete information from the client. Use the checklist we send you and answer every item before returning it.

FAQ

Frequently Asked Questions

When should I start preparing for EOFY?
Ideally you start in May, not June. That gives you time to find missing records, fix reconciliation issues, and chase outstanding invoices before 30 June. Leaving it until the last week of June means you are working with whatever you can find quickly, which usually means missed deductions and a higher tax bill.
What happens if my books are not reconciled by 30 June?
Your tax return can still be prepared after 30 June, but unreconciled books slow the process down and increase the chance of errors. If you are significantly behind, our catch-up bookkeeping service can get your accounts in order before we start on the return.
Do I need to do anything different for EOFY if I run a company?
The bookkeeping and record-keeping steps are the same regardless of structure. For companies, there are additional considerations around director loan accounts (Division 7A), franking account balances, and whether the company needs to declare a dividend before year end. These are structure-specific items we cover when we prepare your return. Get in touch if you want to discuss your situation before 30 June.
What is the tax return deadline for small businesses?
Sole traders and individuals lodging themselves must lodge by 31 October. When AffordBooksTax lodges as your registered tax agent you are eligible for an extended deadline. Company and trust returns lodged through a tax agent are generally due 28 February. See our pricing page for details on our tax return service.
Can I claim expenses I paid from my personal bank account?
Yes. Business expenses are deductible regardless of which account they were paid from. What matters is that the expense was genuinely for the business and you have a receipt or invoice to support it. Keep a note of any business expenses paid personally during the year and include them when you send us your records.
How long does it take AffordBooksTax to prepare my tax return?
Once we have all the information and documents we need from you, we aim to have your return ready for review within 1 to 2 weeks. The most common cause of delays is incomplete information. Using the checklist we provide and answering every item thoroughly makes a significant difference to turnaround time.

Get Your Books EOFY-Ready With AffordBooksTax

We handle bookkeeping, BAS lodgement and tax returns for sole traders, companies, partnerships and trusts. Send us your records and we will take care of the rest.

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