End of financial year checklist for accounting firms

Introduction:

The end of the financial year is one of the busiest times for accounting firms. Every report, reconciliation, and compliance task must be completed accurately and within the deadline. Clients rely on your team to manage this process thoroughly and without delay.

How this period is handled can shape how your service is perceived. A well-managed close reinforces trust and helps set clear expectations for the year ahead. This checklist outlines the key actions your firm should take to stay organised, reduce last-minute stress, and deliver consistent, high-quality outcomes across every client file.

EOFY 2025 checklist: 6 tasks every accountant should cover

Get your clients' records organised and verified

Before diving into reports or advisory work, make sure your clients’ core records are accurate, complete, and ready for review.

Key steps for your team:

• Gather essential documents: Collect reports on income, cash activity, outgoings, and reconciliations through to 30 June.
• Confirm data is entered and up to date: Check that all transactions are recorded in the client’s system and categorised correctly.
• Organise receipts and supporting items: Ensure unusual or high-value transactions are well documented and easy to locate, with consistent file naming.
• Flag any missing or unclear items early: Don’t wait until review time, follow up with clients on gaps or inconsistencies as soon as they’re spotted.

Taking the time to organise records upfront saves hours of cleanup later, especially when onboarding new clients close to EOFY or dealing with complex files.

Reconcile all your client accounts

Maintain the accuracy of books of accounts by performing thorough and consistent reconciliation across all key accounts. Prioritise the following areas:

• Bank and credit card accounts: Match transactions to general ledger entries to identify discrepancies or missing data.
• Loans and long-term liabilities: Confirm outstanding balances and ensure correct classification and amortisation.
• Accounts receivable and payable: Review for overdue invoices, disputes, or unrecorded transactions.
• Clearing and control accounts: Reconcile payroll, GST/BAS, and intercompany accounts to ensure completeness and compliance.

End-of-year reconciliation isn’t just a technical task, it’s an opportunity to identify underlying issues like duplicate entries, unposted transactions, or client-side input errors. Any inconsistencies should be corrected using appropriate journal adjustments and documented in detailed reconciliation reports.

Review and analyse financial statements

Once client accounts are reconciled, the next step is to review the data with a focus on insights and strategy. Go beyond standard checks to help clients make informed decisions. Focus your review on the following areas:

Profit and loss statement

• Assess revenue and expense patterns.
• Identify trends, budget variances, and irregular fluctuations.
• Ignition to automate client engagement letters, proposals, and recurring billing.
• Highlight areas where income or spending has shifted significantly.

Balance sheet

• Ensure assets and liabilities are correctly classified as current or non-current.
• Confirm accurate valuation methods and review owner’s equity.
• Examine solvency and liquidity indicators for long-term stability.

Cash flow statement

• Evaluate whether the business is generating enough cash from operations.
• Review investment activity for growth opportunities or risks.
• Examine financing movements to understand how the business is funding itself.

Help your clients make sense of what the numbers mean for their business. For example, if a client’s revenue is increasing but profit margins are tightening, consider advising on cost control or pricing strategies. Present your findings in clear summaries or visual dashboards to support planning discussions.

By taking this approach, you strengthen your role as a strategic advisor, helping clients grow and adapt, not just manage compliance.

Prepare for tax compliance obligations

Tax preparation

• Collect income reports, expense records, bank statements, and receipts to support deductions and credits.
• Review PAYG/PAYE installments made during the year.
• Finalise Single Touch Payroll (STP) or payday filing as required.
• Remind clients about payment summaries and employee declarations.

Compliance review

• Check that all licences, permits, and industry obligations are current.
• Prepare for annual ASIC filings or company statements.
• Update corporate records, including board minutes.
• Confirm insurance policies are valid and appropriate.
• Lodge TPAR for clients who engage contractors.

Finalise adjustments and lock the books

Once all client and internal transactions have been reviewed, move to closure. Finalisation involves:

• Posting all adjusting journal entries (accruals, reclassifications, depreciation, prepayments)
• Closing temporary accounts (income, expenses, dividends)
• Locking prior periods in accounting software to prevent further edits
• Backing up the final file sets and creating a permanent audit trail
• Delivering final reports to stakeholders and securing necessary sign-offs

This step ensures that accounting records remain tamper-proof and audit-ready. Locking the books provides control, prevents future changes, and ensures clarity for the next financial year. Backup policies should include both cloud and local options to ensure redundancy.

Plan for the new financial year

EOFY is the perfect opportunity to look ahead both for your firm and your clients. Prioritise:

• Helping clients build realistic budgets and cash flow forecasts
• Aligning business goals with available resources and growth capacity
• Reviewing your firm’s KPIs, such as turnaround time, revenue per staff, or gross margins
• Identifying new service opportunities (e.g., business advisory, outsourced CFO, ESG reporting)
• Improving engagement models through fixed fees or value-based pricing

Planning isn’t just about targets, it’s about setting the tone for how your firm adds value in the new year. With clean data and fresh insights from EOFY, you’re in the best position to guide clients toward decisions that support long-term stability and growth.

Final thoughts

Hope this checklist helps you lead a more organised and efficient end-of-financial-year process. If your firm is experiencing capacity challenges or increased demand, AccountGlobal provides dedicated support.

Our experienced virtual accountants and bookkeepers work alongside your team to manage reconciliations, reporting, tax preparation, and a range of ongoing accounting and bookkeeping tasks. This helps you stay on top of your workload while maintaining high standards across every file.

Book a call with us today to explore more about how we can support your firm through EOFY and into the new financial year