Hard as it is to believe, the end of financial year (EOFY) is almost upon us once again; it’s the time of year in business to tie up the loose ends, get the books in order, shift any surplus or miscellaneous stock, and approach a new financial year with a clean slate and with your business in the best shape it can be.
There are some fairly obvious places to start, which your accountant will take great interest in:
· EOFY sales and promotions: do you have obsolete stock cluttering your storerooms, or merchandise on the shop floor that simply isn’t selling? A sale or clearance can move these items, get the stock off the books, and add to the bottom line of the business before it reports for the year.
· What is the ATO on the lookout for? Are the fundamentals in order? Has the business met all of its compliance obligations? Are its wage roll, superannuation requirements and tax affairs up to date? Are all deductions and claims documented, legitimate, and able to be substantiated?
· How to capitalise on tax concessions: we’ll leave this one to the accountants, but as the late Kerry Packer once said, anyone who doesn’t minimise their tax needs their heads read (provided, of course, it’s legal).
· Review and update your business plan: to coin a phrase, a failure to plan is a plan to fail. EOFY is a busy time for many businesses, but it’s also an ideal time to ensure your business plan is “match fit” and suited to the anticipated opportunities, challenges and threats you expect to face in the coming financial year.
EOFY is also an easy-to-remember time to review insurances and to back up data and devices.
There are a few other tips we’d like to share: you may have already thought of these, or be actioning them as we speak, but some businesspeople (especially those who are routinely flat out) may find value here.
Settle all outstanding business matters
EOFY isn’t just about balancing books and preparing reports; it’s equally as important to use this time to address any outstanding issues, debts, liabilities or disputes that your business may be facing. By resolving these matters, you can ensure a clean slate for the new financial year, allowing you to focus on business growth, rather than being unable to move forward strongly.
Unresolved disputes can impact financial forecasting, making it more challenging to plan for the future. They can also have tax implications, affecting your business’ bottom line.
Review contracts and agreements
Employment contracts, supply agreements, service arrangements, reviewing and re-negotiating contracts and agreements that underpin your operations are paramount at the end of the financial year! These documents should be living, evolving instruments that reflect the changing needs of your business and, given constant changes in the legal world (particularly in the field of employment law), it is crucial to ensure your contracts are compliant and up-to-date.
Reflect on IP strategies
If you have been following our newsletters over the past year, you will know all about the importance of protecting your intellectual property (IP). EOFY is an ideal time to re-evaluate your business’ IP strategies to ensure that all your valuable assets such as trade mark, patent, and design rights are protected in the new year. For detailed advice on the best legal strategies to protect your business’ IP, please reach out to schedule a consultation with one of our lawyers.
Set goals
EOFY presents a unique annual opportunity to take stock of your business journey, re-strategise, and set fresh goals. Setting clear goals not only gives you a roadmap for the next year, but injects a sense of purpose and motivation into your business.
For anything legal, Rankin Business Lawyers can help: as our clients and associates prepare to rule a line under another financial year, reach out to us for guidance and advice on all commercial law matters, and let’s make 2026-27 the best year in business yet.