As Quarter 3 (January–March) of the Australian financial year comes to a close, businesses should take proactive steps to assess their financial position and prepare for the final quarter before June 30. A well-planned approach now can help maximise tax benefits, improve cash flow, and ensure compliance, setting your business up for long-term success.
1. Review Your Financial Performance
With three-quarters of the financial year behind you, it’s crucial to evaluate your profit and loss statement, balance sheet, and cash flow. This helps identify trends, potential issues, and opportunities for improvement. Are your revenue and expenses on track? Do you need to adjust your budget or pricing strategies? A clear financial snapshot allows you to make informed business decisions before EOFY.
2. Ensure BAS and Superannuation Compliance
By the end of April, businesses registered for GST must lodge and pay their Business Activity Statement (BAS) for Q3. At the same time, don’t overlook superannuation contributions for employees, which must be processed by April 28 to remain compliant. Late payments can result in penalties and lost deductions, so staying ahead of deadlines is essential.
3. Implement Strategic Tax Planning
With only one quarter remaining, now is the time to implement tax-saving strategies, including:
- Maximising deductions through eligible business expenses and asset purchases.
- Reviewing instant asset write-offs to determine if it’s beneficial to invest in new equipment.
- Assessing superannuation contributions to optimise tax efficiency.
A tax planning review can help reduce your tax liability and ensure your business is making the most of available concessions before EOFY.
4. Strengthen Cash Flow and Budgeting
Quarter 4 can bring seasonal fluctuations, so reviewing your cash flow forecast is essential. Identify upcoming expenses, assess outstanding invoices, and determine if you need to adjust spending. If cash flow challenges arise, consider renegotiating supplier terms or exploring financing options to maintain stability.
5. Align Business Goals with Financial Strategy
Beyond compliance and tax planning, Q3 is a great time to assess whether your business is on track with its broader financial and operational goals. Are your growth plans, marketing strategies, and staffing needs aligned with your financial position? Making adjustments now can drive stronger performance in Q4 and beyond.
6. Get Ready for EOFY Reporting
End-of-financial-year reporting can be time-consuming, so organising financial records now will make the process smoother. Ensure you have accurate documentation of:
- Income and expenses
- Payroll records
- Asset purchases and depreciation
- Outstanding invoices and liabilities
Need Expert Guidance? Let’s Talk.
Quarter 3 is the perfect time to fine-tune your financial strategy and ensure your business is prepared for the final stretch of the financial year. At Savvy Profit Advisory, we provide expert tax planning, bookkeeping, and compliance support to help businesses navigate their financial obligations with confidence.
Get in touch today to ensure your business is on track for a successful EOFY.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation, and needs.
