End of financial year finance planning

The end of the financial year is the busiest time for tax conversations and a good time for finance ones too. Accounts are being finalised, purchases are being planned, and the July BAS is on the horizon. A little planning in May and June can lower your finance costs, avoid cash crunches in July and set you up for better borrowing in the year ahead.

1. Review every facility

List every loan, lease, line of credit, overdraft and card the business holds, with the limit, balance, cost, fees and end date. Then ask:

• Is each facility still doing the job it was taken for?
• Are any limits much higher than you use, costing line fees?
• Are any short-term loans that should have ended still running?
• Would consolidating or refinancing reduce cost or simplify repayments?

The business finance comparison checklist helps assess each one.

2. Plan genuine asset purchases

If the business needs equipment or vehicles, EOFY can be a sensible time to buy, especially if your accountant confirms eligibility for concessions such as the instant asset write-off under the current rules. Allow time for quotes, finance approval, delivery and installation. Our guide to the write-off and finance explains how ownership affects the claim.

3. Protect cash for July

The June quarter BAS, PAYG and, for many, income tax arrive soon after EOFY. Before discretionary spending, check your tax holding account and forecast the amounts due. Our guide to BAS and GST cash planning has the habits that make this easier.

4. Book your financial statements

Lenders often require annual financial statements or tax returns within a set time after year end. Even when they do not, updated statements can support better terms on new finance. Book time with your accountant early. The business.gov.au page on yearly financial tasks is a useful checklist.

5. Check covenants

If any facility has financial covenants, such as minimum profit or interest cover ratios, check whether year-end results will meet them. If not, talk to the lender before reporting. Lenders respond far better to early conversations than to surprises.

6. Clean up records

Tidy loan records: statements, fee schedules, payout figures for anything closed and evidence of how borrowed funds were used. Your accountant needs these to claim interest and borrowing costs correctly.

7. Plan finance for the year ahead

Look at the next twelve months. Are there seasonal peaks, contracts, hires or purchases coming? Arranging facilities before you need them is usually cheaper and calmer than arranging them in a rush. A twelve-month forecast, which the cash flow gap calculator can start, makes the conversation with a lender easier.

What not to do

• Do not buy assets the business does not need just for a deduction.
• Do not empty the tax account on EOFY specials.
• Do not take high-cost short-term finance in June to fund discretionary purchases.

An illustrative example

A made-up dental practice reviews its finance in May. It finds an unused overdraft limit costing line fees, a lease ending in August that it wants to renew with an upgrade, and a covenant requiring financial statements within four months of year end. It reduces the overdraft limit, plans the equipment upgrade with its accountant for July delivery, books the accountant for August and sets aside cash for the July BAS before any other spending.

Talking to your lender after year end

Once statements are ready, consider a short conversation with your main lender, even if nothing is wrong. Share the results, outline plans for the year and ask whether any facility terms could be improved. Lenders value borrowers who communicate, and a good year on paper is the best moment to ask for a lower fee, a higher limit or a release of security that is no longer needed.

Super and payroll at year end

With Payday Super in place from 1 July 2026, super is paid close to each payday rather than in a quarterly lump. That changes the year-end picture for employers who used to time super payments around 30 June. Check with your accountant how deductions for super contributions apply under the new timing, and make sure your payroll system and cash forecast reflect it.

Planning for the July quarter

July is often quiet for many businesses while tax bills arrive. If that pattern applies to you, make sure a buffer or facility is in place before June ends rather than discovering the gap mid-July. A modest line of credit, arranged in advance and left undrawn unless needed, can be a useful safety net for this period.

Reviewing insurance tied to finance

Many loans require assets to be insured with the lender’s interest noted. Year end is a good moment to check that policies are current, values are right and the lender is listed, so a claim never becomes a dispute.

Thinking about finance for the new financial year?

If EOFY planning has shown you need a facility, a refinance or equipment finance, make one enquiry. There is no credit check when you first enquire, a real person reviews it and your details go to one lending partner rather than many. Mention any timing deadlines, such as delivery before 30 June, in your enquiry.