The end of the financial year (EOFY) is often associated with tax returns and compliance, but it’s also one of the best opportunities to step back and evaluate the overall health of your business. A thorough financial review can uncover opportunities to improve profitability, strengthen cash flow, and set realistic goals for the year ahead.
Rather than simply closing the books, use EOFY as a chance to ask the right questions.
1. Did My Business Meet Its Financial Goals?
Start by comparing your actual performance against the goals you set at the beginning of the year. Consider:
- Did revenue increase as expected?
- Were profit targets achieved?
- Which areas exceeded expectations?
- Where did performance fall short?
Understanding what worked—and what didn’t—provides valuable insights for future planning.
2. How Healthy Is My Cash Flow?
Revenue doesn’t always tell the full story. Review your cash flow to ensure your business has enough working capital to meet its ongoing obligations.
Ask yourself:
- Are customers paying on time?
- Are there outstanding debts affecting cash flow?
- Do I have sufficient cash reserves?
- Could expenses be managed more effectively?
3. Are My Business Expenses Still Appropriate?
Business costs naturally change over time. EOFY is an ideal opportunity to review every expense and determine whether it continues to provide value.
Look at areas such as:
- Software subscriptions
- Insurance policies
- Utilities
- Professional services
- Marketing expenditure
- Supplier agreements
Even modest savings across multiple expenses can improve profitability.
4. Is My Pricing Still Profitable?
Many businesses fail to review their pricing regularly despite increasing operating costs. Review whether your pricing still reflects:
- Rising supplier costs
- Labour expenses
- Inflation
- Market demand
- The value you provide
Small pricing adjustments can have a significant impact on your bottom line.
5. Is My Business Structure Still Suitable?
As your business grows, your original structure may no longer be the most effective from a tax or operational perspective.
It may be worth reviewing whether your current structure continues to support:
- Tax efficiency
- Asset protection
- Business growth
- Future succession planning
Professional advice can help determine whether any changes would be beneficial.
6. Am I Using Technology Effectively?
Modern accounting software and cloud-based systems can save time while providing greater visibility over your finances.
Consider whether your current systems allow you to:
- Access real-time financial reports
- Automate repetitive tasks
- Manage payroll efficiently
- Monitor cash flow
- Generate meaningful business insights
Technology should support better decision-making, not create additional work.
7. Have I Planned for the Year Ahead?
A successful business doesn't simply react to challenges—it plans ahead. Take time to establish goals for the next financial year, including:
- Revenue targets
- Profit objectives
- Hiring plans
- Investment opportunities
- Cash flow improvements
Having a clear financial roadmap makes it easier to measure progress throughout the year.
8. Do I Have the Right Professional Support?
An accountant should do more than prepare tax returns. The right advisor can provide strategic guidance throughout the year, helping you identify opportunities, minimise tax, improve financial performance, and make informed business decisions.
Working with an experienced accounting team gives you access to insights that can support sustainable long-term growth.
Build a Stronger Financial Future
An EOFY financial health check isn’t just about reviewing the past—it’s about preparing for what’s next. By regularly assessing your financial position and seeking professional advice, you can make confident decisions that support the continued success of your business.
At McHenry Partners, we work with businesses across Geelong to provide practical accounting, taxation, business advisory, and cloud accounting services that go beyond compliance. Our team helps business owners understand their numbers, identify opportunities, and plan for long-term success.
Ready to start the new financial year with confidence? Contact McHenry Partners today to book a financial health check and discover how strategic advice can help your business thrive.