As June 30 draws nearer, small businesses are gearing up for one of the busiest and most important times of the year—EOFY.
It’s more than just crunching numbers; it’s a chance to minimise taxes and build a stronger financial foundation for the following year.
EOFY is also a golden opportunity for brokers to help clients identify missed deductions, review working capital needs, and offer guidance for more thoughtful planning. Whether you’re working with sole traders or companies, having a solid EOFY checklist can help you bring real value to the table and keeps clients on track.
Let’s walk through a streamlined checklist that ensures nothing critical is overlooked while uncovering new strategies to support your clients.
EOFY Checklist For SMEs
EOFY can feel overwhelming, but breaking it into manageable parts makes the process smoother.
This section covers the core areas SMEs need to address and where brokers can assist.
Finalise The Latest Financial Statements
Start by reconciling all accounts, including bank balances, credit cards, and outstanding invoices.
From there, generate profit and loss statements, balance sheets, and cash flow reports. These documents are the foundation of an SME’s tax return and arekey to assessing performance.
Brokers can support this process by reviewing trends, identifying cash flow concerns, and flagging areas for improvement.
Compile All Pertinent Records
Organise key documents such as income records, receipts, supplier invoices, loan summaries, employee payment details, and superannuation records. Using cloud-based accounting systems can make this process faster and easier.
It’s also important that clients clearly separate personal and business finances to avoid ATO red flags.
Track Assets Purchased And Expenditures
Brokers can help their clients by suggesting they list all business-related purchases and asset acquisitions made during the year, including vehicles, equipment, and technology upgrades.
Some purchases may immediately be deductible for Financial Year 2025 as the $20,000 instant asset write-off remains active. Check the current eligibility and timing through websites like business.gov.au.
Brokers can consider taking this chance to review whether recent equipment purchases were financed and whether the company optimises the return on those investments.
Conduct A Stocktake
If the business carries stock, the ATO requires an EOFY stocktake. This involves counting inventory, valuing items (at cost or market), and writing down obsolete stock.
Stock discrepancies may also reveal issues with loss, theft, or inefficiencies. Based on these insights, brokers can offer inventory financing or help restructure purchasing strategies.
Check For Business Tax Deductions
You may want to take this time to make sure SME clients aren’t leaving deductions on the table.
This includes common items like:
- Vehicle and fuel expenses
- Home office costs
- Business travel
- Repairs and maintenance
- Prepaid expenses (rent, insurance, subscriptions)
The ATO website provides a complete guide on business deductions. Brokers can flag applicable categories and recommend that the client confirm eligibility with a registered tax agent.
Make Super Contributions For Employees
For superannuation contributions to be deductible in the current financial year, they must be received by the employee’s super fund no later than 30 June, not just processed or paid on that day.
Note that if the funds aren’t cleared into the super account in time, the deduction can be rolled over into the next year upon being received by the super fund.
Business owners may want to process payments by mid to late June to avoid delays, allowing for banking cut-off times and fund processing delays.
Lodge Final Tax Return
Once the books are finalised and records are in order, the next big EOFY task is lodging the annual business tax return.
For sole traders and many small partnerships, the due date is typically 31 October unless lodging through a registered tax agent, which may extend the deadline.
This is where brokers can add real value. You often hold key information that accountants need to complete a client’s return. This includes:
- Loan and lease documentation
- Interest expense summaries
- Statements for finance-related deductions (e.g. equipment loans, equipment finance, overdraft usage)
Review Loan Obligations And Financing Needs
EOFY is the ideal time for businesses to assess their current financial obligations, especially any existing loans, credit lines, or leasing arrangements.
It’s an opportunity to assess whether those facilities are still fit for purpose or if better options are available.
Consider encouraging your clients to review the following:
- Current repayment terms and interest rates
- Whether working capital needs have changed due to growth or seasonal pressures
- Any upcoming large expenses or asset purchases
As a broker, you can help clients refinance high-interest debt, consolidate repayments, or access more flexible funding to support their plans for the new financial year.
This is also a good time to potentially revisit whether equipment financing, trade credit facilities, or short-term cash flow solutions might give your clients an operational edge, especially if they plan to scale or pivot in the next 12 months.
Check For Outstanding Debts Or Unpaid Invoices
Consider helping your clients chase down unpaid invoices before closing the books.
A strong EOFY balance sheet starts with clearing as much debt as possible.
Encourage automation using accounting software with invoice reminders. Also, assess if invoice or debtor financing might be helpful for businesses with long payment cycles.
Assist Clients With Plans For The Next Financial Year
Once the books are closed, it’s time to look ahead.
You may want to help your SME clients set realistic budgets, revisit goals, and explore funding options to support growth.
Brokers may offer their support by:
- Reviewing cash flow projections
- Discussing working capital loan options
- Preparing for equipment upgrades or expansion
- Scheduling quarterly check-ins to monitor progress
EOFY is a chance to help your clients build momentum for the following year.
Conclusion
EOFY can be daunting, but with the right plan and the right support, it can become an opportunity to reset, reduce stress and position your clients for a stronger new year.
As a broker, this is the time to go beyond lending.
By helping clients stay compliant, uncover tax-saving opportunities, and plan strategically, you can build stronger relationships and reinforce your role as a trusted partner.
