Running a small business takes time and energy. Before you know it, EOFY 2025 is almost here. It stands for End of Financial Year, which in Australia ends on June 30. This is the time to check your records, clean up your accounts, and make sure everything is in order. It’s not just about tax. It’s also about staying compliant and planning for what’s next. To help, we’ve listed smart and simple EOFY tips for small businesses. These tips will guide you through what to do now, so you can avoid stress later. Start early, stay organised, and finish the financial year strong.
What Does EOFY Mean?
EOFY stands for End of Financial Year. In Australia, this always falls on June 30. It marks the end of the business year for tax and accounting. Small business owners use this time to go over their income, spending, and other records. You need to make sure everything is correct before lodging your tax return. So, if you’re asking “when is EOFY 2025?”, it ends on 30 June 2025.
EOFY is more than just a tax deadline. It’s a chance to see how your business is doing. You can track your earnings, check your costs, and fix any problems in your books. This helps you plan better for the next year. During this time, it’s smart to review all your invoices and receipts. Make sure nothing is missing. If some customers haven’t paid, and you know they won’t, you can write off those debts. Also, check if any business costs can be claimed as tax deductions.
Keeping your records in one place can make EOFY a lot easier. Try not to leave everything until the last week. Getting started early means less stress and fewer mistakes. And if you’re unsure about anything, it’s always okay to ask a tax advisor or accountant for help. EOFY 2025 doesn’t have to be hard — a little planning now can save time later.
Easy Tips to Get Ready for the End of the Financial Year
The end of the financial year (EOFY) is an important time for small businesses. It’s when you check your money, prepare your taxes, and get your records in order. If you don’t get ready early, it can feel stressful and rushed. But don’t worry — with a few simple steps, you can stay on track and feel in control.
Here are some easy EOFY tips to help you get started and finish the year strong:
1. Get Your Documents in Order
Start by gathering all your paperwork from the past financial year. Having everything in one place will make tax time much easier and faster.
Some of the important documents you should collect include:
- Receipts for income and expenses: These show what your business earned and what you spent. Keep receipts for things like supplies, rent, electricity, internet, travel, or equipment.
- Business Activity Statements (BAS): If your business is registered for GST, you should have lodged BAS every quarter or month. Keep copies of these statements for your records.
- Employee superannuation records: If you have workers, you must pay super. Keep a record of every payment made to your employees’ super accounts.
- Tax return paperwork: Gather all your old tax returns and any papers from your accountant or bookkeeper that help with doing your taxes.
2. Remove Any Unpaid or Bad Debts
Sometimes, customers don’t pay their bills. If you’ve tried to contact them and they still haven’t paid, it may be time to write off that debt.
It means you accept that the money won’t come in, and you remove it from your business accounts. This may feel frustrating, but it has one benefit — you may be able to reduce your taxable income, which means paying less tax.
Here’s how to handle it:
- Find out who still needs to pay you
- Send a nice reminder to ask for the money
- Give a small discount if they pay before June 30
- If they don’t answer, ask your accountant if you can cancel the debt
Tip: Keep good notes of all emails or phone calls made to recover the money. The Australian Taxation Office (ATO) may ask for proof that the debt is “bad” and unlikely to be paid.
3. Settle Any Outstanding Bills
Just like customers might owe you money, your business might also owe others. These could be bills from suppliers, rent, or payments to contractors. Before the end of the financial year (EOFY), make sure all your payments are up to date.
Why it matters:
- It helps you avoid late fees or interest charges.
- It keeps your business records clean and accurate.
- It shows that you are reliable and helps you keep a good relationship with others you work with.
Here’s what you can do:
- Go through your unpaid bills or invoices.
- Pay anything that’s overdue.
- Reach out to any contractors who haven’t sent their invoice yet.
- Double-check bank records to make sure payments have gone through.
4. Look Into What You Can Claim on Tax
At tax time, you want to lower the amount of tax you pay. One way to do this is by claiming business expenses as tax deductions.
It means you subtract some costs from your total income. This lowers the income the government uses to calculate your tax.
You can usually claim things like:
- Paper, pens, and ink to write and print
- Laptops, printers, and phones to help you work
- Apps and software you use for your business
- Electricity and internet at your workplace
- Website and ads online to tell people about your business
- Car costs if you use your car for work
Important: You must keep receipts or records to prove each expense. The ATO may ask for them if they check your tax return.
Also, keep personal and business expenses separate. Don’t claim things like your home groceries or personal trips. That can cause problems with your tax.
5. Check If You’re Eligible for Tax Discounts
If your small business makes less than $5 million a year, you might get some extra tax help. This help is called an income tax offset.
It’s a small refund that reduces the total amount of tax you owe. The good news is, you don’t have to apply for it — the Australian Taxation Office (ATO) does the calculation for you.
You could receive up to $1,000 back as part of this offset. This happens when you lodge your tax return. The ATO checks how much you earned and how much tax you owe. Then, they automatically apply the offset.
Who can get it?
You may qualify if you:
- Run your business as a sole trader
- Are in a partnership
- Get business income through a trust
Tip: Make sure all your income and expenses are correct when you lodge your return. This helps the ATO give you the right offset amount.
6. See If You Can Claim Any Asset Costs
Did you buy new equipment or tools for your business this year? You may be able to write off the cost and reduce your taxable income.
It means you can claim the full cost of an asset as a tax deduction. This helps lower the amount of tax you need to pay.
The Temporary Full Expensing (TFE) rule makes things easier. It lets many businesses claim the full cost of new or used business items right away, instead of over a few years.
You may be able to write off:
- Computers, printers, or tablets
- Office furniture and chairs
- Tools or machines
- Business vehicles, like utes or vans
If your business earns less than $5 billion, you might be eligible. For used assets, your turnover must be less than $50 million.
What to do now:
- Check what assets you bought this financial year
- Keep your receipts or tax invoices
- Talk to your accountant or bookkeeper to see what you can claim
7. Understand the Tax Perks Available to You
If your business makes less than $2 million a year, you may get special tax benefits. These are rules that help small businesses pay less tax.
You could get help with:
- Capital Gains Tax (CGT) – This is tax on selling business assets. You may pay less or nothing at all.
- Goods and Services Tax (GST) – Some small businesses can report GST less often.
- Income Tax – You may get lower tax rates or small business tax offsets.
- Fringe Benefits Tax (FBT) – This is tax on extra perks for staff, like work cars. You might get discounts or avoid paying it.
Why this matters:
These benefits can save you money. But they only work if you know about them and apply them correctly.
What to do:
- Go to the ATO website to see all the benefits for small businesses.
- Ask a tax expert or bookkeeper if you need help.
- Make sure your business is set up properly and your records are correct.
8. Stay Updated on Tax Rules
Tax rules can change each year, and this can affect how your business reports income or claims deductions. It’s important to check for updates from the ATO (Australian Tax Office) regularly.
Talking to a tax agent or financial advisor can also help. They can explain the new rules and how they affect your business. Staying up to date helps you avoid mistakes and follow the law.
9. Keep Track of Deadlines
Make sure all super payments for your employees are made before June 30. If you pay on time, your business can get a tax deduction this year. But if you pay late, you might have to wait until next year to get the deduction. This can affect your money planning.
Here are a few helpful tips to stay on track:
- Set reminders a few weeks before the due date so you don’t forget.
- Use payroll software that can automatically track and pay superannuation (super).
- Check with your super clearing house to make sure there’s enough time for the payment to go through.
- Keep records of all your payments so your accountant or bookkeeper can check them later.
10. See What Help Is Available for Small Businesses
Check out the support available for small businesses. The ATO (Australian Tax Office) has useful tools, tips, and programs to help you manage your business. They offer help with tax, GST, super, and keeping good records. You can also join free workshops, webinars, and use online services made just for small businesses. Using this support can help you follow the rules, save time, and run your business better.
11. Get Help If You Need It
It’s a good idea to talk to a financial advisor, accountant, or bookkeeper. These experts can help you manage your business money the right way. They make sure you’re paying the correct tax, wages, and super on time. Their advice can also help you avoid big mistakes and plan better for the future of your business.
Wrapping It Up
As the 2025 financial year ends, it’s important for small businesses to stay organised and plan ahead. Doing things like keeping good records, claiming the right tax deductions, and making sure your super and payroll are up to date can really help. When you take the time to prepare, you can avoid problems and make your business stronger for the future.
Need expert support to navigate EOFY with confidence? Contact Nexgen Accounting & Tax today and let our team help you close the year strong and start the new one smarter.
