The end of the financial year has a habit of creeping up quickly. One minute it feels like there is plenty of time before June 30, and the next, you are wondering whether everything is in order.
For many people, EOFY becomes associated with paperwork, tax returns, and deadlines. But it can also be a valuable moment to pause and take a broader look at your financial position with a simple financial check. A few thoughtful checks before the year closes can help reduce stress, uncover opportunities, and give you a clearer path into the next financial year.
Whether you are running a business or reviewing your personal finances, these five ways to do a financial check can help you feel more prepared. If you are unsure where to start, our experienced Geelong accountants can help guide you through the process and ensure nothing important is missed.
1. Review your cash flow and financial position
One of the most useful things you can do before the end of the financial year is take a close look at your cash flow. Understanding what is coming in, what is going out, and what remains outstanding gives you a clearer picture of your financial position.
For business owners, this financial check might involve reviewing outstanding invoices, checking supplier payments, and ensuring there is enough cash available to cover upcoming obligations such as tax, superannuation, and operational expenses. Cash flow issues often arise not because a business is unprofitable, but because money is tied up in unpaid invoices or poorly timed expenses.
For individuals and families, reviewing your financial position may involve looking at income changes over the past year, examining spending habits, and identifying any large upcoming expenses.
Taking time to understand where things currently stand through a financial check allows you to make informed decisions before the financial year closes. It can also help you avoid unexpected surprises when tax time arrives.
2. Make sure your expenses and records are up to date
Accurate record-keeping is essential for tax and financial management. As the financial year comes to an end, it is a good time to ensure your expenses and supporting documentation are properly recorded.
For businesses, this includes checking that all operational expenses have been entered into your accounting system. Subscriptions, insurance premiums, utilities, travel costs including car logs, professional services, and training expenses should all be reviewed to ensure they have been captured correctly.
It is also worth making sure receipts, invoices, and digital records are organised and easy to access. Waiting until tax time to search for missing documents can create unnecessary pressure and delays.
Individuals should also review their records for work-related expenses, donations or investment costs that may be eligible deductions.These might include work-related equipment, professional memberships, education expenses, or investment-related costs.
If you are unsure about what can be claimed or how deductions apply to your circumstances, speaking with one of our Geelong accountants can help ensure everything is handled correctly and in line with current regulations.
3. Check superannuation contributions and obligations
Superannuation is another important area to review before the end of the financial year. While it is often seen as a long-term savings vehicle, it can also play a role in tax planning and financial strategy.
For business owners, a key financial check is ensuring that all employee superannuation obligations are up to date and paid on time. Super payments must be made by the required deadlines to remain tax deductible, so confirming these obligations before 30 June is essential.
Directors and business owners may also want to review their own super contributions. Depending on your circumstances, making additional concessional or non-concessional contributions could provide long-term benefits and support your retirement planning.
Individuals may also benefit from reviewing their super position. Even small voluntary contributions can help build momentum over time, especially when they are part of a broader financial plan.
Because superannuation rules can change and contribution limits apply, it is important to consider how these decisions fit within your overall financial strategy. This is another area where professional advice from our LBW team of advisers can help ensure the right approach is taken.
4. Review asset purchases and depreciation
If you have purchased equipment, technology, vehicles, or other assets during the year, it is important to review how those purchases have been recorded and treated for tax purposes.
Many businesses invest in new equipment or infrastructure throughout the year without fully considering how these purchases affect their financial statements or tax position. Ensuring assets are correctly recorded allows you to apply the appropriate depreciation treatment and potentially access available tax concessions.
In some cases, businesses may also be eligible for immediate asset write-offs or accelerated depreciation depending on the type of asset and current legislation.
Equally important is reviewing assets that are no longer in use. If equipment has been replaced, disposed of, or become obsolete, it may need to be written off appropriately within your accounts.
Keeping your asset register accurate ensures your financial records reflect the true value of your business assets and helps avoid complications during tax reporting.
5. Revisit your broader financial and business goals
While many EOFY conversations focus on compliance and tax, the end of the financial year is also an ideal time to review your broader financial strategy.
For business owners, this can involve assessing whether your business is performing in line with expectations. Are revenue targets being met? Are profit margins where they should be? Is cash flow stable enough to support future growth?
You may also want to review business structures, operational efficiencies, and upcoming opportunities for expansion or investment. Taking a moment to reflect on the year that has passed can help clarify where to focus your attention next.
For individuals and families, the end of the financial year can serve as a natural checkpoint for personal financial goals. Are you making progress toward savings targets? Has your financial situation changed since last year? Do your current plans still align with your priorities?
This type of financial check is often where conversations with our financial planning advisors become particularly valuable. Numbers alone can only tell part of the story. Talking through your goals and plans can help turn financial data into clear next steps.
Why EOFY planning and a financial check matters
Many people approach the end of the financial year with a sense of urgency and go on a shopping spree in the final weeks of June. However, proactive planning can make a significant difference.
When a financial check happens earlier, there is more time to make informed decisions. Whether it involves adjusting expenses, reviewing contributions, or updating records, taking action before the deadline creates more flexibility.
Working with experienced Geelong accountants and financial planners can also provide a broader perspective on your finances. Instead of focusing only on tax compliance, the conversation can expand to include business strategy, financial planning, and long-term wealth creation.
The goal is not simply to complete the financial year successfully, but to position yourself strongly for the next one.
Prepare for the new financial year with confidence with a financial check
The end of the financial year does not have to be stressful. With a simple financial check and a clear understanding of your financial position, it can become a valuable opportunity to reset and plan ahead.
Reviewing your cash flow, updating your records, checking super contributions, assessing assets, and revisiting your broader financial strategy can help ensure you finish the year on solid ground.
If you would like guidance working through your EOFY financial check, the team at LBW is here to help. Our accountants and business advisors provide clear and practical advice so you can move into the next financial year with confidence.
This blog provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
LBW Business + Wealth Advisors is an Authorised Representative of LBW Wealth Pty Ltd ABN 56 652 382 128 AFSL 534569. Please see our website www.lbwca.com.au or call 03 5221 6111 for more information on our available services.
