As the end of the financial year approaches, there are a few essential things all business owners should consider, whether you’ve had a great year or a challenging one.
Getting ahead of your EOFY obligations now can save you from stress, penalties, and missed opportunities later.
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Start With the EOFY Basics
If you haven’t already, now’s the time to take a close look at your profit and loss statement, review your expenses, and check whether there are any accounts you can pay in advance to legitimately reduce your taxable income.
Don’t forget to finalise and pay any outstanding employee superannuation before the end of the quarter, so it’s properly recorded.
Stay Compliant as a Company Director
Around EOFY, there’s often a spike in new business registrations — including trusts and companies. If you’re setting up a new company or already acting as a Director, you need to understand your legal obligations.
Your Duties as a Director
Company directors are legally required to act in the best interests of the company, not themselves. This includes avoiding conflicts of interest, maintaining accurate records, and following ethical and financial governance practices.
Something as simple as forgetting to update your corporate address or relying solely on an Excel spreadsheet for bookkeeping can lead to compliance issues. Using proper accounting software is essential.
The ATO Is Getting Tougher
The ATO has been cracking down on directors who delay superannuation payments or use tax obligations as a ‘free loan’. It’s issuing thousands of Director Penalty Notices (DPNs), which can make directors personally liable for unpaid tax or super.
In early 2024 alone, it’s estimated that 30,000 DPNs were issued — a clear sign that ignoring compliance responsibilities is a risky strategy. If you’re behind on payments, now is the time to act.
Planning for the Financial New Year
As the new financial year begins, use this moment to reset. Review last year’s performance, compare forecast vs actual results, and set new goals for the year ahead.
Consider finding an accountability partner — someone in a similar business or industry — to help you stay focused and supported.
Facing a Tough Year?
If high interest rates and rising costs have impacted your business, you’re not alone. Many business owners are finding this year particularly difficult.
While your accountant may not be able to fix everything, having a conversation can be a powerful first step. They can help identify cost-cutting opportunities, explore pricing strategies, and even look into restructuring loans or accessing new financial tools.
The sooner you reach out, the more options you’ll have — and you won’t be left facing financial stress on your own.
Talk to Someone Who Can Help
Whether your business is thriving or struggling, you don’t have to navigate EOFY on your own. A good accountant can help you meet your obligations, plan ahead, and keep your business on the right track.
Ready to set your financial new year resolutions? Contact JVP Advisory today and take the first step towards a stronger financial future.
