As the financial year draws to a close, it’s natural to focus on getting everything in order for tax time.
But the most successful businesses don’t just prepare their accounts, they use this moment to make strategic decisions that shape the year ahead.
A little proactive organisation goes a long way. But combining that with the right advice? That’s where real value is created.
Here are nine key areas to focus on before March 31, along with where the biggest opportunities often sit.
1. Give Your Accounting System a Health Check
Think of this as a financial ‘end-of-season’ clean.
Ensure:
- All transactions are recorded
- Bank accounts are reconciled
- Accounts payable and receivable are up to date
Strategic insight:
Clean data isn’t just for compliance, it’s what enables better decision-making. Without it, you’re effectively flying blind into the next financial year.
2. Gather Essential Tax Documents Early
Don’t wait until the last minute.
Bring together:
- Income statements & expense reports
- Bank & credit card statements
Strategic insight:
The earlier your accountant has this information, the more time there is to identify opportunities, not just complete filings.
3. Conduct a Year-End Stocktake
If your business holds inventory, now is the time to verify stock levels and ensure records match
Strategic insight:
Stock accuracy doesn’t just impact compliance, it directly affects profitability, pricing decisions, and working capital going into the new year.
4. Identify & Write Off Bad Debts
Review outstanding invoices and flag any that are unlikely to be recovered.
Strategic insight:
Beyond potential tax deductions, this gives you a clearer view of true revenue, and highlights where credit control processes may need strengthening.
5. Review Payroll & Prepare for Changes
Stay ahead of:
- Minimum wage increases
- ACC levy updates
- Employee entitlement changes
Strategic insight:
Year-end is also an ideal time to assess team structure, productivity and whether your payroll systems are supporting or slowing your growth.
6. Plan for Terminal Tax Payments
Terminal tax is due on April 7.
Strategic insight:
Cash flow planning here is critical, especially if you’re also considering reinvestment, hiring, or expansion in the new financial year.
7. Check Your Provisional Tax Obligations
Provisional tax is due on May 7.
If your income has changed, now is the time to review whether adjustments are needed.
Strategic insight:
Getting this right early can help avoid underpayment penalties and ensure your cash flow is aligned with actual business performance.
8. Review Fixed Assets & Depreciation
Take stock of your asset register and identify items that can be written off or replaced.
Strategic insight:
Timing matters. Strategic asset investment before March 31 can improve both operational efficiency and tax outcomes.
9. Assess Whether a Dividend Needs to Be Declared
If you operate a company, consider whether declaring a dividend before year-end makes sense.
Strategic insight:
The balance between shareholder salary, dividends, and retained earnings can significantly impact both tax efficiency and personal cash flow.
The Often-Missed Opportunity: Thinking Beyond Compliance
Most businesses stop at getting their accounts in order.
But the biggest gains often come from asking:
- Are we pricing correctly?
- Which parts of the business are most profitable?
- Where should we invest (or cut back) next year?
- What should our financial targets be for FY2027?
The businesses that outperform don’t wait until April to answer these questions.
They start now.
What This Means for Business Owners
Financial year-end isn’t just about closing the books.
It’s a strategic window, one of the few times in the year where small decisions can have a meaningful impact on:
- Tax position
- Cash flow
- Profitability
- Growth trajectory
If you are needing to talk about your EOFY situation don’t hesitate to get in touch for a free consultation.
FAQs About End of financial Year Accounting
You should ensure your accounts are up to date, review expenses, assess tax obligations, and identify opportunities to improve your financial position before March 31.
No, even in the final days, there are still opportunities to make strategic decisions that impact your tax and financial outcomes.
For most businesses, the financial year ends on March 31.
Depending on your situation, strategies like timing income, managing expenses and reviewing asset purchases may help reduce your taxable income.
Yes. Proactive advice before March 31 can help identify opportunities that are no longer available once the year closes.
