End-of-year financials

What Are End-of-Year Financials?

End-of-year financials refer to the formal review and reconciliation of a business's financial activities at the close of the financial year, typically on 30 June in Australia. This process includes the finalisation of income, expenses, payroll, superannuation, tax obligations, and reporting for compliance and strategic planning. It's a critical period where accuracy and organisation can directly affect your business’s legal standing and financial health.

For Australian employers, especially those using digital HR and payroll systems, preparing EOFY financials efficiently is essential to meeting Australian Taxation Office (ATO) deadlines and maintaining compliance with the Fair Work Act, Superannuation Guarantee, and Single Touch Payroll (STP) reporting requirements.

Key Components of EOFY Financials for Employers

End-of-year financials typically involve the following:

1. Finalising Payroll
   • Processing the final pay run for the financial year
   • Making adjustments for bonuses, commissions, and any outstanding entitlements
2. Reconciling Superannuation Contributions
   • Ensuring all super has been paid and accurately allocated
   • Verifying payments match employee entitlements (e.g. 11.5% SG rate for FY24–25)
3. STP Reporting
   • Lodging final STP reports by 14 July so employees can access their Income Statements via myGov
4. Issuing Payment Summaries (if not using STP Phase 2)
   • For closely held payees or employers still partially transitioning to STP
5. Reviewing Financial Records
   • Ensuring all wage expenses, PAYG withheld, leave accruals, and super liabilities are recorded correctly in your general ledger
6. Preparing BAS and Tax Returns
   • Lodging Business Activity Statements and preparing for annual income tax submissions
7. Assessing Fringe Benefits
   • Reviewing Fringe Benefits Tax (FBT) liabilities and declarations if applicable

Why End-of-Year Financials Matter

EOFY financials ensure that:

• You meet ATO compliance requirements and avoid penalties
• Employees receive accurate income and tax data
• Your business can close the books with clean, reconciled records
• You’re positioned to make informed business decisions in the next financial year

Poor EOFY preparation can result in ATO fines, underpayment claims, and delayed tax returns—not to mention added stress for finance and HR teams.

Common EOFY Mistakes to Avoid

• Missing STP deadlines
• Not reconciling payroll and super correctly
• Failing to back up data or maintain records
• Misreporting wages or incorrectly classifying allowances
• Overlooking updated SG rates or modern award increases

🔗 ATO – Checklist for Employers

How Microkeeper Supports EOFY Financials

Microkeeper streamlines EOFY processes through automation and compliance-ready tools built into your payroll system:

• STP Phase 2 Compliance
  All pay events are lodged in real-time, with EOFY finalisation ready in a few clicks.
• Automated Super Clearing
  Microkeeper integrates with Beam Super Clearing House, simplifying contribution reconciliation and payment deadlines.
• Payroll Reconciliation Tools
  Detailed reporting dashboards help ensure employee earnings, tax, and leave balances are accurate.
• Award Interpretation Engine
  Ensures correct wage rates and entitlements are applied throughout the year, reducing year-end surprises.
• One-click EOFY Reporting
  Generate income statements, summaries, and ATO-compliant reports with ease.

➡️ Explore Microkeeper’s Payroll Tools

Best Practices for End-of-Year Financials

1. Start Early
   Don’t wait until the last week of June. Begin reconciling payroll, leave, and super in May to allow time for corrections.
2. Communicate with Your Accountant
   Provide clean, reconciled records and discuss tax strategies like instant asset write-offs.
3. Update Employee Details
   Ensure all employee contact details, TFNs, and pay classifications are accurate before STP finalisation.
4. Check Legislative Changes
   Watch for changes to tax brackets, SG rates, and wage increases.
5. Use a Digital Payroll System
   Automating year-end tasks can save hours of manual work and ensure higher accuracy.

FAQs About End-of-Year Financials

When is EOFY in Australia?
EOFY ends on 30 June each year. All financials and STP data must be finalised shortly after, with deadlines typically in early to mid-July.

What if I make a mistake in my EOFY report?
You can submit an amended STP finalisation, but it must be done promptly to ensure your employees’ tax returns are correct.

Do small businesses have different EOFY requirements?
While reporting thresholds may vary, all employers must meet STP and super obligations regardless of size.

Final Thoughts

End-of-year financials aren’t just a compliance checkbox—they’re an opportunity to tidy up operations, plan for growth, and support your team’s financial wellbeing. With smart payroll software like Microkeeper, you can turn EOFY into a smooth, stress-free process that sets your business up for success in the new financial year.

_{Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or legal advice. Please consult a registered tax professional or the Australian Taxation Office for personalised guidance.}