Well, here we are. 30 June is almost upon us, which means it’s officially crunch time for small business owners across Australia.
EOFY 2026 is a big one. A lot of things happened in the last 12 months that affect your books, your compliance, and your obligations going forward.
We’ve covered a heap of ground together this year. So before you barrel into FY27, let’s do a quick lap of the most important things we’ve talked about, a few things you might have missed, and what you genuinely cannot afford to ignore before 30 June.
Think of this as your bookkeeper’s EOFY small business recap! The one your accountant will thank you for reading.
What FY26 Threw at Small Business Owners
It’s been a year of change. Here’s a quick hit of the big themes.
Payday Super is almost here
We wrote about Payday Super back in March, and we’ll keep saying it: this is the biggest payroll change in years.
From 1 July 2026, employers will be required to pay superannuation at the same time as wages, not quarterly. If you’re still on the old quarterly cadence, your payroll setup needs attention before FY27 kicks off.
What to do now:
- Talk to your bookkeeper about whether your current payroll process can accommodate the change
- Check your Xero payroll settings
- Make sure super is being calculated correctly on all earnings types, including bonuses and leave loading
This one has real cashflow consequences. Don’t leave it until July.
EOFY is the moment of reckoning for your financial records. Whatever’s been coded incorrectly, reconciled sloppily, or ignored for “later” will all comes to a head now.
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Reconciliation is the Thing Nobody Wants to Do (Until There’s a Problem)
Our April post on reconciliation shortcuts struck a chord. Specifically: the number of business owners running on “close enough” reconciliations and not realising the damage until EOFY.
End of financial year is exactly when those gaps show up. An unreconciled transaction from November quietly balloons into a GST error, a missed deduction, or an incorrect profit figure.
Before 30 June, run through your Xero account reconciliation for the year. If it’s been a while (or ever), now is the time.
AI Tools Are Helpful — And Not To Be Trusted Blindly
We covered this in December. Xero’s AI, Hubdoc, Dext. They’re all getting smarter, and they’re all still making mistakes.
EOFY is when miscoded transactions really matter. A personal expense coded to a business account, or an incorrect tax code on a supplier invoice, can affect your GST, your deductions, and your year-end reports.
Do a final review before you hand anything over to your accountant. “The AI did it” won’t hold up with the ATO.
The EOFY Checklist: What To Close Out Before 30 June
Right. Let’s get practical.
- Finalise your payroll in Single Touch Payroll (STP)
STP finalisation is a legal requirement, not optional. You need to confirm your payroll figures for the year through Xero before your employees can complete their tax returns.
In Xero: Payroll > Single Touch Payroll > Finalise.
Do this as soon as your last June pay run is processed. Don’t leave it to your accountant to chase.
- Review your debtors and write off bad debts
If a customer genuinely can’t pay, you may be able to write off the debt and claim a GST adjustment.
This needs to happen before 30 June to affect this financial year. Check your aged debtors report in Xero and make a call on anything that’s been sitting there for months.
- Prepay expenses where it makes sense
Prepaying certain expenses before 30 June (subscriptions, insurance, rent) can bring a deduction into this financial year instead of next. Worth a conversation with your accountant, but your bookkeeper needs to make sure those transactions are coded correctly and dated correctly in Xero.
- Do your EOFY stocktake
If you carry inventory (retail, hospitality, product-based businesses)a stocktake as close to 30 June as possible gives you the most accurate picture of your stock on hand.
Xero doesn’t automatically adjust for stock write-downs or losses. Make sure your figures are right before the end of year..
- Check your chart of accounts
EOFY is a natural time to tidy up. Accounts that are no longer relevant, duplicated suppliers, transactions sitting in the wrong category can all make your reports messy and cost you at tax time.
If your Xero file is looking chaotic, our clean up service exists for exactly this reason.
- Reconcile everything
Every bank account. Every credit card. Every loan account.
All of it needs to be reconciled to 30 June before your accountant can do their job. If you hand them a half-reconciled file, expect delays and a bigger bill.
- Don’t forget TPAR — it might apply to you
The Taxable Payments Annual Report (TPAR) is due 28 August each year, but the data comes from the financial year that just ended. If your business is in construction, cleaning, IT, road freight, or security, you may need to lodge one.
We see this missed regularly. Check if it applies to you at ato.gov.au and get your contractor payment data ready.
What You Can’t Afford To Ignore Going Into FY27
A few things are changing from 1 July that will affect your bookkeeping from day one.
Payday Super (yes, again — it’s that important)
Already mentioned, still worth repeating. From 1 July 2026, superannuation must be paid on payday, every time. Penalties for non-compliance will apply.
If you’re not sure whether your business is ready, talk to us before the new FY starts.
Minimum wage changes
Fair Work announces the annual minimum wage increase in June, with the new rate effective from the first full pay period on or after 1 July. Check the current rate at Fair Work before you process your first July pay run. Your Modern Award rate may be different again.
Super guarantee rate
The super guarantee rate has increased annually in recent years. From 1 July, the SG rate will remain at 12%. This can be verified via ato.gov.au
A word on your FY26 records
You are required to keep business records for a minimum of five years from when you lodged your tax return (or prepared the records, whichever is later). That includes invoices, receipts, bank statements, payroll records and contracts.
EOFY is a great time to make sure everything is filed and accessible. Dext and Xero make this easier than it used to be, but only if you’ve been using them consistently throughout the year.
If your records are patchy, your accountant will let you know. Your bookkeeper can help you fill the gaps.
The Big Picture: Is Your Xero Telling The Truth?
EOFY is the moment of reckoning for your financial records. Whatever’s been coded incorrectly, reconciled sloppily, or ignored for “later” will all comes to a head now.
Your profit and loss report. Your balance sheet. Your GST liability.
These need to reflect reality before your accountant can sign off on anything.
If you’re not confident in what Xero is showing you, that’s worth addressing before you hand anything over.
It’s been a big year. There’s a lot to close out, and there’s a lot coming in FY27.
You don’t have to do it all yourself. That’s what we’re here for.
Need Help Preparing for EOFY?
Its not too late!