Key Takeaways
- Proactive planning helps avoid tax-time stress and financial surprises
- Quarterly reviews keep your business aligned with goals and cash flow
- Smart decisions early in the year give you more control over your tax outcome
- Superannuation, deductions, and asset purchases should be planned ahead
- Work with your accountant each quarter—not just at the end
For many small and trade business owners, the end of the financial year feels like a mad rush—chasing invoices, sorting receipts, and scrambling to make sense of the numbers. But it doesn’t have to be that way.
Smart businesses start EOFY planning well before June. In fact, the most successful operators review their financial position quarterly and make strategic moves throughout the year to reduce tax, improve cash flow, and stay in control.
Here’s what you should be thinking about each quarter to avoid last-minute headaches and keep your business financially healthy.
Q1: July to September – Set the Foundation
- Review last year’s results: Understand what worked and what didn’t. Identify areas of improvement and set goals for this financial year.
- Update your budget and cash flow forecast: Use fresh numbers to predict income, expenses, and tax liabilities.
- Ensure compliance: Lodge your June BAS, finalise Single Touch Payroll (STP) reports, and issue payment summaries if applicable.
- Check superannuation contributions: If you claimed deductions last year, ensure your super was paid before June 30 to qualify. Start early this year.
This is your chance to reset and build a strong foundation. If you fell short last year, don’t wait to correct course.
Q2: October to December – Optimise and Plan Ahead
- Assess performance against your budget: Are you on track or falling behind? Adjust your spending, pricing, or resourcing as needed.
- Review tax strategies: Talk to your accountant about ways to minimise tax while there’s still time to act—such as prepaying expenses or reviewing asset purchases.
- Consider asset upgrades: If you’re planning to upgrade tools, vehicles, or equipment, check if it’s better to purchase this side of Christmas or wait until the second half of the year.
- Check GST and PAYG: Review your quarterly obligations and make sure your records are clean. Late payments can lead to unnecessary penalties.
Quarter 2 is also a good time to reassess staffing, training needs, and potential subcontractor arrangements ahead of busy periods like summer and early autumn.
Q3: January to March – Take Advantage of Time
- Review your income projections: Based on year-to-date performance, do you expect a profit or loss this year? This informs your tax strategy.
- Explore tax planning strategies: This is a key window to act. Can you bring forward expenses, defer income, or maximise deductions?
- Top up super: If you have extra cash flow, consider personal super contributions for potential tax offsets or deductions.
- Start succession or growth discussions: If you’re considering expansion, selling, or stepping back, now’s the time to model different scenarios with your advisor.
This quarter gives you time to implement changes before the financial year closes. Don’t leave it to May or June when your options are more limited.
Q4: April to June – Execute Your Plan
- Finalise any key purchases: If you’re claiming instant asset write-offs or need new equipment, now’s the time to act—before June 30.
- Pay superannuation early: Super needs to be paid before June 30 to be deductible this year, and clearing houses can take days to process.
- Write off bad debts: Identify any outstanding invoices that won’t be paid and write them off before year-end to reduce taxable income.
- Do a stocktake: If your business holds inventory, count stock and assess what needs to be written down or cleared.
- Meet with your accountant: Review your final tax position and ensure all necessary documentation is ready for year-end lodgements.
Q4 is all about execution. Make sure all your efforts during the year are locked in and that nothing slips through the cracks in the rush to EOFY.
Why Quarterly Planning Works
EOFY is not a single date on the calendar—it’s the result of 12 months of business activity. Planning in quarterly chunks allows you to:
- Make informed decisions with current data
- Stay compliant and avoid late fees
- Smooth out cash flow
- Take advantage of tax savings before it’s too late
By breaking EOFY into four strategic phases, you reduce the stress of year-end crunch time and give your business the best shot at growth, profitability, and long-term sustainability.
Final Thoughts
For tradies and small business owners, time is a precious resource. The last thing you want is a tax surprise or financial issue that could have been avoided with a bit of planning.
Work with your accountant each quarter—not just at tax time. This proactive approach will help you stay ahead of obligations, reduce tax, and give you more confidence in your decisions all year round.
EOFY may seem far away, but in business, every quarter counts. Start planning now, and finish the year strong.
