What is the Australian standard for retaining business records?

The Australian Taxation Office (ATO) generally requires businesses to keep records for five years from the date of lodgement of the relevant tax return. For employee records, the Fair Work Ombudsman mandates a seven-year retention period, which includes payroll, superannuation, and leave details. Always store records securely, whether digitally or physically.

How does Single Touch Payroll (STP) impact EOFY reporting for tradies?

Single Touch Payroll (STP) streamlines EOFY reporting by sending payroll information directly to the ATO each pay run. This means employers no longer need to provide payment summaries for employees via myGov. Your payroll software should finalise STP data by 14 July each year, ensuring all wages, PAYG withholding, and superannuation are correctly reported to the ATO.

Can I claim tools and equipment immediately at EOFY?

Yes, eligible businesses can claim an immediate deduction for the full cost of tools and equipment under the instant asset write-off. For the 2023-24 income year, the threshold is $20,000 ex GST per asset. This applies to assets first used or installed ready for use between 1 July 2023 and 30 June 2024. Always check the ATO website for the latest thresholds and eligibility criteria.

How do I prepare my bookkeeping for EOFY in Australia?

Skill level: General guidance
Time: Varies
Trade: Bookkeeping & Cashflow
Updated: 4 November 2026

Why is EOFY bookkeeping crucial for Australian tradies?

Getting your bookkeeping ready for EOFY is about more than tidying up the numbers — it helps you lodge accurately, understand how the year really performed, and avoid a scramble when your accountant or tax agent asks for missing information. For Australian small business owners, sole traders and contractors, a clean EOFY file can also make BAS, payroll, super and cash flow issues easier to spot before they become expensive problems.

What are the essential steps for EOFY bookkeeping accuracy?

EOFY bookkeeping is mainly about accuracy, completeness and evidence. In practice, that means your bank accounts, credit cards, loans and payment platforms should be reconciled, with transactions coded consistently and supporting documents kept for business expenses, asset purchases and owner drawings.

Payroll needs to match what has actually been reported and paid. If you employ staff, EOFY often involves checking wages, PAYG withholding, super and leave balances against your payroll system, STP reporting and payment records. The ATO’s STP requirements and Fair Work’s pay and entitlement rules both matter here.

Your profit figure is only useful if the underlying coding is right. Common EOFY clean-up work includes reviewing the chart of accounts, clearing suspense or uncategorised items, separating private and business spending, and making sure income and expenses are recorded in the correct period as far as your bookkeeping method allows.

Accounts receivable and payable can affect both cash flow and year-end accuracy. Unpaid customer invoices, supplier bills, credits and old balances should be reviewed so you know what is genuinely outstanding versus what should be written off, followed up or corrected.

Software reports are only as good as the setup behind them. Xero, MYOB and QuickBooks can all produce useful EOFY reports, but if GST codes, payroll settings, bank feeds or account mappings have been wrong during the year, the reports may need review before your accountant relies on them.

What A Specialist Would Review For Your Situation

Whether your reconciliations are complete and reliable, including bank accounts, loan balances, merchant facilities, clearing accounts and any differences between software balances and real-world statements.

How your business structure affects EOFY treatment, such as whether you are a sole trader, company, trust or contractor arrangement, and what that means for drawings, wages, director transactions and records.

Payroll and super compliance touchpoints, including STP finalisation, PAYG withholding, super payment timing, leave balances and whether employee versus contractor treatment has been handled correctly under ATO and Fair Work guidance.

Balance sheet items that often need year-end attention, such as GST clearing accounts, loans, asset purchases, hire purchase or finance agreements, and transactions your accountant may want identified separately.

The handover to your accountant or tax agent, including which reports, reconciliations and source documents will help them prepare year-end accounts and tax returns efficiently, without unnecessary back-and-forth.

Common Costly Mistakes

Leaving unreconciled transactions, duplicate entries or uncoded bank feed items until the last minute.

Mixing personal and business expenses, then trying to sort them out from memory at EOFY.

Assuming payroll is correct because staff were paid, without checking STP, super and entitlement records.

Writing off old debtor or creditor balances without understanding what they relate to or how they affect the accounts.

When To Get Professional Help

DIY EOFY preparation usually stops making sense when payroll, super, GST, loans, asset purchases or messy historical transactions are involved. If your file is behind, the numbers do not match your bank or ATO records, or you want confidence before your books go to your accountant, a registered BAS agent or experienced bookkeeper can usually spot issues much faster than trying to troubleshoot everything yourself.

Talk To A Specialist

If you want your EOFY bookkeeping reviewed before it goes to your accountant or tax agent, a bookkeeping health check can help identify gaps, clean-up priorities and reporting issues. If you’d like to talk it through with a specialist, you can enquire here: /finance/enquire?service=bookkeeping

Frequently Asked Questions

What should be finalised in my books before EOFY?

Generally, you want your bank and credit card reconciliations up to date, income and expenses coded consistently, and key balance sheet accounts reviewed for anything unusual. If you run payroll, wages, PAYG withholding, super and STP reporting should also be checked against your records before year-end reporting is treated as complete.

Do I need to reconcile every bank account before giving my books to my accountant?

As a rule, yes — unreconciled accounts make it harder to trust the reports and can create delays or extra clean-up work later. This includes business bank accounts, credit cards, loan accounts and payment platforms if you use them for business transactions.

How do I know if my payroll is EOFY-ready?

A good general check is whether your payroll reports agree with what was actually paid to employees and reported through STP, and whether super and leave records look reasonable. Because payroll also intersects with ATO reporting and Fair Work obligations, it is worth having anything unusual reviewed rather than assuming the software has handled it correctly.

Can I do my EOFY bookkeeping myself as a sole trader?

Many sole traders can handle basic EOFY preparation if their records are simple, separated from personal spending and kept up to date during the year. But if there are GST issues, mixed-use expenses, asset purchases, contractor questions or a backlog of uncategorised transactions, getting a bookkeeper involved can save time and reduce errors.

What does a registered BAS agent help with at EOFY?

A registered BAS agent can assist with bookkeeping work connected to BAS, GST, payroll and other permitted services within the Tax Practitioners Board framework. They can also help prepare accurate records and reports for your accountant or tax agent, but the exact support depends on your business setup and the condition of your books.

Important — General Information Only

This information is general in nature only and is not personal bookkeeping, cash flow, tax or payroll advice. It does not take into account your objectives, financial situation or needs, so you should consider your own circumstances and seek advice from an appropriately licensed or registered professional before acting. For authoritative guidance, refer to the ATO for STP, PAYG withholding and super obligations, Fair Work for pay and entitlement rules, and the Tax Practitioners Board for information about registered BAS agents.

Frequently asked questions

What should be finalised in my books before EOFY?: Generally, you want your bank and credit card reconciliations up to date, income and expenses coded consistently, and key balance sheet accounts reviewed for anything unusual. If you run payroll, wages, PAYG withholding, super and STP reporting should also be checked against your records before year-end reporting is treated as complete.
Do I need to reconcile every bank account before giving my books to my accountant?: As a rule, yes — unreconciled accounts make it harder to trust the reports and can create delays or extra clean-up work later. This includes business bank accounts, credit cards, loan accounts and payment platforms if you use them for business transactions.
How do I know if my payroll is EOFY-ready?: A good general check is whether your payroll reports agree with what was actually paid to employees and reported through STP, and whether super and leave records look reasonable. Because payroll also intersects with ATO reporting and Fair Work obligations, it is worth having anything unusual reviewed rather than assuming the software has handled it correctly.
Can I do my EOFY bookkeeping myself as a sole trader?: Many sole traders can handle basic EOFY preparation if their records are simple, separated from personal spending and kept up to date during the year. But if there are GST issues, mixed-use expenses, asset purchases, contractor questions or a backlog of uncategorised transactions, getting a bookkeeper involved can save time and reduce errors.
What does a registered BAS agent help with at EOFY?: A registered BAS agent can assist with bookkeeping work connected to BAS, GST, payroll and other permitted services within the Tax Practitioners Board framework. They can also help prepare accurate records and reports for your accountant or tax agent, but the exact support depends on your business setup and the condition of your books.
What is the Australian standard for retaining business records?: The Australian Taxation Office (ATO) generally requires businesses to keep records for five years from the date of lodgement of the relevant tax return. For employee records, the Fair Work Ombudsman mandates a seven-year retention period, which includes payroll, superannuation, and leave details. Always store records securely, whether digitally or physically.
How does Single Touch Payroll (STP) impact EOFY reporting for tradies?: Single Touch Payroll (STP) streamlines EOFY reporting by sending payroll information directly to the ATO each pay run. This means employers no longer need to provide payment summaries for employees via myGov. Your payroll software should finalise STP data by 14 July each year, ensuring all wages, PAYG withholding, and superannuation are correctly reported to the ATO.
Can I claim tools and equipment immediately at EOFY?: Yes, eligible businesses can claim an immediate deduction for the full cost of tools and equipment under the instant asset write-off. For the 2023-24 income year, the threshold is $20,000 ex GST per asset. This applies to assets first used or installed ready for use between 1 July 2023 and 30 June 2024. Always check the ATO website for the latest thresholds and eligibility criteria.

Written by Tally, the Bookkeeping & Cashflow specialist at Aus.Tools.