What to Do from 1 July: Kick off the New Financial Year with a Bang!

The start of a new financial year presents the perfect opportunity to reset, refocus, and set your business up for success. 

As your accountant, we recommend treating 1 July not just as a date on the calendar, but as a strategic launchpad for the year ahead.

Here’s how to make the most of it:

1. Update Your Financial Records and Systems

Start fresh by ensuring your accounting software is rolled over to the new financial year.

Reconcile your books, clear any outstanding transactions, and archive your end-of-year records. This helps avoid confusion and ensures clean, accurate reporting from day one. 

Review your chart of accounts and reporting categories — they may need tweaking to reflect your business’s current goals better.

2. Review and Reset Your Budget

Take the time to review your past performance and set a realistic, informed budget for the new financial year. Factor in both fixed and variable costs, expected revenue, and any anticipated growth or investment areas. 

A well-prepared budget helps you track progress, make timely decisions, and avoid unnecessary cash flow pressures.

3. Revisit Your Business Plan and Strategy

Is your business still moving in the direction you want it to? 

Use this opportunity to revisit your goals, marketing strategies, and growth plans. If you’ve been operating without a documented business plan, now is the time to formalise it.

4. Check Compliance and Key Thresholds

From 1 July, various tax thresholds, award rates, and superannuation rules may change. For example, the super guarantee rate will increase to 12% from 1 July 2025. Ensure your payroll systems are updated to reflect this and any other relevant legislative changes. Review your obligations for PAYG withholding, BAS lodgements, and STP reporting.

5. Set KPI Targets

Establish measurable key performance indicators (KPIs) for your business, such as profit margins, customer retention, lead generation, or productivity. Setting targets early keeps you focused and helps you identify issues before they grow.

6. Assess Your Staffing and HR Needs

Evaluate whether your current team structure supports your goals. Are you looking to hire? Do your current team members need training or development? Review award changes and ensure all employment contracts and leave balances are up to date.

7. Update Your Risk Management

Ensure all business insurances (including public liability, cyber, and professional indemnity) are current and still appropriate for your risk profile. Review your data security and privacy procedures, especially if you store customer or employee information.

8. Engage with Your Accountant Early

Don’t wait for tax time to ask questions. Discuss tax planning, cash flow forecasting, business structure, or financing options with us early on. Getting proactive advice now can lead to significant savings and smarter decisions in the future.

By acting early in the financial year, you give your business the best possible chance to thrive. 

Taking a proactive, strategic approach from 1 July helps build momentum, keeps your financials in order, and sets the tone for a strong and prosperous year ahead. 

As always, we’re here to help you every step of the way. Start a conversation with us to find out how.