Everything You Need to Know About EOFY [EOFY Checklist]

What Is EOFY (End of Financial Year)?

EOFY stands for the end of the financial year. Many call it "tax time" because people and businesses must make tax returns.

The phrase "end of financial year" or "end of fiscal year" is written as "EOFY." Regarding taxes, a financial year is the twelve months a business is open. At this point, all companies must finish their books for the past year, report their income, and claim any tax breaks they are eligible for.

This helps determine how much tax the government or the business owe the government. Most of the time, you have a certain amount of time to prepare and send in your tax return without paying any fines. 

When Is EOFY?

Aussies' tax year goes from 1 July to 30 June. That means the end of the financial year (EOFY) is 30 June.

Why Is EOFY Important?

EOFY is about ending the year and preparing for the next one. The Australian Taxation Office (ATO) wants to ensure your business follows the rules, so it's time to get your "house in order." Part of the process is ensuring that your taxes, planning, and records are current.

What Are The Record-Keeping Activities in EOFY? 

End-of-year paperwork can feel never-ending, but four essential tasks must be completed. Like a financial analyst, every business structure, size, and set-up is unique. However, we all have end-of-financial-year (EOFY) obligations to fulfil, and ensuring you complete everything accurately can be challenging.

1# Profit & Loss Statement  

Here is a breakdown of your income and expenses. It provides a clear overview of the profitability of your business over the financial year. During tax season, it is essential to process all outstanding transactions to update your financial accounts with accurate figures. This includes sales, loans, expenses, depreciation, interest, etc.

2# BAS (Business Activity Statement) Lodgement  

Like a financial analyst, you likely stay on top of your BAS throughout the year. Therefore, EOFY serves as a reminder to ensure that your lodgements are accurate and up-to-date. If not, it's time to consult with your bookkeeper or the ATO to get back on track.

3# Payroll Lodgements  

Ensuring accurate payroll information is essential for providing employees with the correct data. As part of the role, it involves reconciling and processing all outstanding Super and PAYGW payments and reviewing staff's leave entitlements and other payroll liabilities.

Reporting your staff's payroll information is seamlessly handled through Single Touch Payroll (STP), ensuring this vital data is automatically transmitted to the ATO after every pay run. Your employees can easily access their personal payroll information through their MyGov account.

4# Stocktake  

Performing a stocktake involves meticulously counting your products, goods, or inventory and verifying that it matches your stock control records. By accurately calculating the value of your trading stock, you can ensure that your stock assets are recorded correctly in your tax return.

EOFY (End of Financial Year) Checklist 

The end of the financial year (EOFY) is a big time for your business. You must do your taxes, keep your books, and plan for the next fiscal year. This list will help you prepare for the new year, organise your business, and work better.

Download EOFY Checklist >>

Step 1: Check Record-Keeping Processes  

An essential and non-negotiable element of EOFY is verifying compliance with all reports and documents with the Australian Tax Office (ATO).

In addition to the ATO's requirement that companies maintain records for a minimum of five years, many companies opt to eliminate paper usage. This aspect warrants consideration when transitioning between solutions providers or procuring new technological solutions.

To ensure the submission of accurate Business Activity Statements (BAS), have your accountant review the automated bank rules and GST codes assigned to the items on the Profit and Loss and Balance Sheet. In addition, you will need to be well-versed in Single Touch Payroll (STP), Taxable Payments Annual Reports (TPAR), and other topics that will be elaborated upon above.

Because BAS is intended to assist you in maintaining regular compliance with your business taxes, this is the initial critical item to cross off your EOFY checklist. Ensure that your BAS submissions are current and accurate. If not, attend to your ATO payments and establish a payment plan to keep you up to speed.

Step 2: Finalise Payroll & Super Obligations   

Next on the end-of-financial-year (EOFY) checklist are payroll and superannuation.

Single Touch Payroll (STP) is required for employers to deliver payroll tax and super information to the ATO automatically. In the latest development of STP, employers are now providing additional information to government agencies through STP Phase 2.

As a financial analyst, complete your end-of-financial-year Single Touch Payroll (STP) finalisation declaration by 14 July 2024. This will allow the tax and super information on your employee's income statement to be pre-filled when they lodge their tax return.

Advise your staff to wait until their income statement is marked as 'tax ready' before submitting their tax return. If individuals decide to submit their tax returns with incomplete information, they may have to make changes later on if their income statement is updated with different figures.

Step 3: Decide Which Tax Deduction to Claim   

Most of the costs you have for your business should be tax-deductible. You might get a tax break for the price of an asset you bought for your business in the 2023-24 tax year. This is called the quick asset write-off.

For the 2023-24 tax year, tax-eligible small business owners can write off up to $20,000 per helpful business asset. The things you buy must be set up and ready to go in your business between 1 July 2023 and 30 June 2024. The government discussed this plan as part of the budget for 2023-24, but it is not yet law.

Small businesses that qualify will be able to get two new bonus discounts.

With the Small Business Technology Investment Boost, small businesses can get an extra 20% tax break when they buy digital technology. This will help them grow by investing in their digital processes.

The second boost is the Small Business Skills and Training Boost. This will give small businesses that qualify an extra 20% tax break when they train new and current workers.

You can get several tax deductions if your business is qualified. These can help you pay less tax. Because each concession has different requirements, such as turnover, ensure you meet them yearly before you ask for the concession.

1. Small Business Concessions

As a small business meeting specific criteria, you can get benefits, such as different ways to pay and file taxes. This is true for sole traders, partnerships, businesses, and trusts. Other concessions have different standards for who can get them.

Some tax reductions are available to small businesses that qualify based on total sales. This is true for sole traders, partnerships, companies and trusts.

In addition to total sales, most small business discounts have other requirements for who can get them. Every year, ensure you are still eligible before requesting a concession.

If your total sales are less than $20 million, you can get small business capital gains tax deductions; $5 million gets you a small business income tax deduction, and $10 million gets you a small business rebuild rollover.

If your total sales are less than $10 million, you usually have two years from when we sent you your notice of assessment to complain to or change your assessment.

1. Primary Producer Concessions

If you are a primary producer, the amounts you count as your annual assessable income may change because of special tax breaks. You may only have to make two pay-as-you-go (PAYG) payments a year instead of 4, which can change when you pay your income tax.

Primary producers can also use primary production averaging, which might let them pay less tax in years when they make more than the average amount.  

1. Special Professionals, Sportsmen, Entertainers Concessions

Some exceptional professionals, athletes, and entertainers can use income averaging. If you do this, you can pay less tax in years when you make more than average.

Income averaging might work for you if you are an artist, a songwriter, a performer, an author, a production assistant, an inventor, or a sportsperson.

Step 4: Pay Attention to Tax Changes  

A comprehensive understanding of how taxes affect a business and how to prepare for them effectively will enable you to make better decisions annually and during tax season.  

Verify that your tax agent is initially registered with the Tax Practitioners Board (TPB). There are primarily two methods for verifying registration:

1. Conduct a TPB register search.
2. Look for the registered tax practitioner logo on their business cards, website, stationery, and brochures. The registered tax practitioner symbol comprises their unique registration number and registration category.

Annual tax changes may occur, which you should remain cognisant of. These may include modifications to tax legislation, small business deductions, or concessions.

Step 5: Review Your Finance  

As part of your end-of-financial-year (EOFY) checklist, ensuring that all necessary preparations have been made for reconciliation is essential.

Reconciliation is a crucial process where one examines actual transactions and compares them to supporting documentation to uncover discrepancies, errors, or suspicious activities.

This step is crucial for businesses during their end-of-financial-year (EOFY) processes. It enables management to proactively identify issues before reporting to the ATO, providing ample time to make necessary adjustments or rectifications.

Take the opportunity to carefully review your financial situation, either independently or with the assistance of a professional. Examine whether you have achieved your goals and consider potential adjustments for the upcoming fiscal year. Review your Balance Sheet and Profit and Loss Statement to ensure you have completed the following tasks.

Step 6: Review Your Business Plan, Structure & Insurance  

Spend some time getting ready for the coming year. Going over and making changes to your plans regularly will help you remember your goals and priorities, adjust to changes in your environment, set priorities and get the most out of your work (work smarter, not more complex), see if your strategies are working, and take advantage of new opportunities as they arise.

You may change or restructure your business as it grows. The rules for compliance and taxes change based on how your business is set up. You should review how your business is structured at the end of the financial year.

It is also vital to ensure your business has the right insurance. A good insurance plan can help protect your company, clients, and money. Learn about the different kinds of business insurance and pick the ones suitable for you.

Step 7: Prepare for Financial Year 24/25  

Ensure you have everything to start the next fiscal year on time. Given the current tax legislation and the constantly shifting economic landscape, it is crucial to prioritise business and tax planning.

Here is a curated list of items to consider as you prepare for the upcoming Financial Year 2024/25.

• National Wage Increase: Stay tuned for updates on the national wage increase. Fair Work usually makes an announcement in June regarding any changes to pay and wages, so it's worth watching for relevant news.

• Price Changes: Considering your updated reports and related planning, your prices or pricing model might be worth revisiting.

• Reporting: It is advisable to update the Profit and Loss and cash flow budgets for the upcoming year, considering the changes identified and any other anticipated developments. Take the opportunity to compare the budgets with the actual figures for the current period and incorporate any forecasts for the future.

• Policies & Financing: During the end of the financial year, business decision-makers need to evaluate their access to finance, repayment terms, and any insurance or policies that may be in effect and incurring costs.

• Tax Planning: Discuss tax planning as early as possible to ensure a favourable tax position by the end of the year 23/24.

Utilise your STP accounting or payroll software, the ATO's tax tables, or tax withheld calculator to assist you in completing this task. Make sure to utilise the latest tax tables and verify that your STP-enabled software has been updated with the new PAYGW rates after 1 July.

Important Financial Dates

Be proactive in keeping track of deadlines to avoid any surprises. Stay informed about the deadlines for your tax returns, business activity statements (BAS), and standard payments.

Jackery Solar Generators for EOFY Sales

Now that we've discussed what EOFY means and what to do, you may wonder about EOFY sales in 2024. End-of-the-year sales usually happen at the end of June, but you can find deals as early as May.  

At this point in the year, many sales are going on. You can find great deals on many things, not just work-related ones.

Jackery is the leading brand of solar products, including solar panels, portable power stations, and solar generators. Here, we will introduce our Jackery Solar Generators, which combine Jackery Solar Panels with Portable Power Stations to use solar energy fully.

Jackery Solar Generator 1000 Pro

The Jackery Solar Generator 1000 Pro comprises SolarSaga 80W solar panels and the Explorer 1000 Pro portable power station. It is quiet (as low as 46dB), lasts ten years or more, and can be fully charged in 1.8 hours. Its steady-powering dual 100W PD design ensures all your essential electronics work even if the power goes out.

The 1002Wh capacity of the rechargeable Explorer 1000 Pro power station means that it can power 93% of products, such as fridges, TVs, computers, E-bikes, and more. At a fair price, it should be your first choice!

It also has two 100W PD connectors and two USB-C ports, which let you charge devices like computers, smartphones, and iPads quickly and reliably. The MPPT technology guarantees that sun charging will work 99% of the time. Ultimately, the power station can be charged in less than 1.8 hours. Solar power is one way to charge, but you can also use a wall outlet or carport.

Jackery Solar Generator 2000 Plus

The Solar Generator 2000 Plus by Jackery significantly enhances the available choices for portable electricity with its exceptional performance. With its substantial capacity and impressive power output, this device can provide electricity to regular vans for an extended time, making it ideal for outdoor excursions or as a home backup power supply. Adding battery cells to the Jackery Solar Generator 2000 Plus enhances its capacity from 2 kWh to 12 kWh, leading to a significant transformation in providing backup power for households.

The Explorer 2000 Plus has a maximum power output of 3000W, 30% greater than other 2 kWh versions with similar capabilities. Although the Solar Generator 2000 Plus is commonly used, it may achieve a complete charge within 6 hours by utilising 6 SolarSaga 100W solar panels. The power source achieves self-sufficiency by harnessing solar energy rather than relying on the power grid for charging.

The supplementary battery pack can be recharged using solar panels, offering extra versatility while enhancing charging efficiency and reducing time consumption. Jackery Solar Panels have a high sunlight conversion efficiency of up to 25%, producing more energy. You can consider Jackery Solar Generator 2000 Plus in this EOFY sales season.

EOFY FAQs

The following are the frequently asked questions about the EOFY (end of financial year).

1. 1. What happens in EOFY?

The Australian fiscal year commences on 1 July and concludes on 30 June of the subsequent year. By the end of each fiscal year, small business owners complete their bookkeeping, generate financial statements, and start organising their tax documents and accounting.

2. 2. What is the year-end closing process?

As a certified management accountant (CMA), the year-end closure process, known as "closing the books," entails a comprehensive examination, reconciliation, and validation of all financial transactions and components of the company's ledgers from the preceding fiscal year. Part of the job involves computing business expenses, income, revenue, assets, investments, equity, and other related financial metrics.

3. 3. Why do businesses spend money at the end of the year?

First, it allows for an immediate write-off of the purchase on your tax return, eliminating the need to concern yourself with depreciation. Additionally, taking care of that necessary expense now will alleviate any future concerns, allowing you to better strategise for next year's small business budget.

4. 4. What is a financial year-end?

A fiscal year-end signifies the conclusion of a 12-month accounting period not aligned with the usual calendar year. A fiscal year is the timeframe commonly utilised for computing yearly financial statements. A company's fiscal year may vary from the calendar year and may not end in December.

Final Thoughts

By thoroughly reviewing this checklist and seeking the necessary assistance, you can ensure that the end of the financial year (EOFY) becomes a straightforward and efficient process annually. Ensuring the accuracy and timeliness of all your accounts will help prepare your business for the upcoming financial year.

Start preparing now to stay on top and alleviate any end-of-financial-year stress. We have compiled a helpful end-of-financial-year checklist for small businesses to help you avoid feeling stressed and overwhelmed during the EOFY period.