The Australian financial year ends on 30 June, and the weeks immediately before it represent the busiest and most critical period in the bookkeeping calendar. Transactions dated before 30 June affect the current year's tax position; transactions dated 1 July or later affect the next year. Getting the cutoff right matters.
This checklist covers the key tasks that need to be completed — or at least initiated — before 30 June for every standard business client engagement.
Bank and Account Reconciliation
Reconcile all bank accounts to 30 June. This seems obvious, but many bookkeepers process EOFY accounts with the last reconciliation date in mid-June. All bank accounts, credit cards, loan accounts, and payment platform accounts (Stripe, PayPal, Afterpay) should be reconciled to 30 June before the books are considered closed.
Reconcile accounts receivable. Match all outstanding invoices to the debtors ledger. Identify:
- Invoices paid after year-end but before the accounts were closed (these may or may not be deductible depending on the method)
- Invoices that are genuinely outstanding (aged debtors review)
- Invoices that are unlikely to be collected (bad debt write-off candidates)
Reconcile accounts payable. Match all outstanding bills to the creditors ledger. Confirm that bills received before 30 June are recorded in the year they were incurred, not the year they were paid — this is particularly important for businesses using the accruals method.
Reconcile payroll year-to-date. The payroll ledger should agree with the STP data reported to the ATO. Confirm total wages, PAYG withholding, and super contributions for the year. Any discrepancies need to be investigated and corrected before year-end finalisation.
Income and Expense Cutoff
Income cutoff. For businesses using the accruals method, revenue should be recognised when it is earned, not when payment is received. An invoice raised on 28 June but paid on 5 July is 2024-25 revenue. Confirm that all invoices dated before 30 June are included in the current year's income.
Expense cutoff. Similarly, expenses should be recognised when they are incurred, not when they are paid. A supplier invoice dated 29 June that is paid in July is a current-year expense. Check your client's accruals — particularly for professional fees (accountant, lawyer), utilities, rent, and insurance.
Prepaid expenses. Amounts paid before 30 June that relate to periods after 30 June may need to be treated as prepayments rather than expenses, depending on the amount and the relevant tax rules. Significant prepayments should be flagged to the accountant.
Inventory
For businesses that hold stock, a stocktake as close to 30 June as possible is required to value closing inventory accurately. The value of closing inventory is critical to calculating the business's taxable income — unsold stock is not a deductible expense in the year it was purchased.
If the client has obsolete, damaged, or slow-moving stock, this is the time to review it. Inventory that can be demonstrated to have a market value below cost can be written down to that lower value — a legitimate deduction that many clients miss.
Fixed Assets
Review the fixed asset register. Confirm that all assets listed are still owned and in service. Assets sold or scrapped during the year should be removed, and any gain or loss on disposal should be calculated and recorded.
Confirm new asset additions. Any significant asset purchased during the year should be on the register with its acquisition date, cost, and applicable depreciation method. This is particularly important for assets that may qualify for the instant asset write-off.
Instant asset write-off. For assets purchased before 30 June that meet the eligibility criteria, the instant asset write-off allows an immediate deduction for the full cost. Confirm with the accountant which assets are eligible and ensure they are recorded as purchased (not just ordered) before 30 June.
Super Contributions
Confirm SG contributions are paid and received. For a super contribution to be deductible in the current financial year, it must be received by the super fund before 30 June — not just paid by the employer. Allow 3–5 business days for the super fund to receipt the contribution.
Director super contributions (personal deductible contributions). If a client wants to make personal super contributions for the current year and claim them as a deduction, the contribution must be received by the fund before 30 June AND a notice of intent to claim must be lodged with the fund. Remind clients of this well before 30 June — not on 28 June.
Check for SG gaps. Review the year's payroll to confirm that super has been paid for all periods and all eligible employees. Any outstanding SG amounts trigger the SGC, which is not deductible and carries a significant penalty component.
Trusts and Distributions
Trustee resolution — 30 June hard deadline. Discretionary trust clients must have their trustee resolution signed before midnight on 30 June. Any undistributed trust income is assessed at 47% — the highest possible rate. This is a hard deadline with no grace period.
Ensure the accountant is engaged well in advance to prepare the resolution, because the trust's net income figure needs to be reliable before the resolution can be made.
PAYG Withholding and STP
STP finalisation. After 30 June, employers must finalise their STP data — confirming that year-to-date payroll figures reported through STP are correct. The ATO deadline for STP finalisation is generally 14 July. Employees cannot see their finalised income statement (and their tax agent cannot complete their return) until this is done.
Check withholding reconciliation. Total PAYG withholding reported through STP should match the amounts remitted to the ATO (via BAS or directly). Any discrepancy needs to be resolved before the annual return is lodged.
The June BAS
For quarterly BAS filers, the June quarter BAS covers 1 April to 30 June. It must include all transactions with a tax point in that period. After the year-end reconciliation is complete, the June BAS figures should be confirmed against the reconciled accounts before lodgement.
Final Review Before Closing the Year
Before treating the year-end accounts as final:
- Run a trial balance and review for any obvious anomalies (large debit balances in income accounts, credit balances in expense accounts)
- Check that GST collected and GST paid balances reconcile to the BAS lodgements for the year
- Confirm the bank reconciliation reports show zero unreconciled items
- Obtain client sign-off on the year-end accounts
A completed EOFY reconciliation that has been reviewed and approved by the client is the foundation for a clean, efficient tax return process. The time invested in getting it right before 30 June pays off repeatedly in the months that follow.