Accounting
EOFY always seems to come around quickly. There are lodgements to finish, accounts to reconcile, questions to answer and plenty of loose ends to close off.
For scaling and venture-backed companies, it is easy to treat that as a compliance exercise and move on. But EOFY is also a good time to tidy up the records that may matter later, especially if the business is preparing for a raise, exit, board review or due diligence process.
That includes the usual finance admin: payroll, BAS and GST, super and STP, R&D support, director loans, related-party balances, contractor records and any unresolved tax positions.
Most of the time, these things sit quietly in the background.
But when investors, boards or advisors start asking questions, they matter. They help show whether the business has a handle on its obligations, its risks and the details behind the numbers.
Clean records make those conversations easier. Messy records create more work, more questions and more time spent digging through old issues when the team should be focused on what comes next.
Why EOFY matters for scaling companies
EOFY is not just about getting the numbers ready for tax.
For a scaling company, it is a useful time to step back and ask whether the business is ready for what comes next.
That does not mean every record needs to be perfect. Growing companies are rarely tidy in every corner. But investors and boards will usually expect the business to know where things stand.
Are payroll records accurate? Do BAS and GST match the accounts? Are super and STP up to date? Is the R&D claim properly supported? Have contractor arrangements been reviewed? Are director loans and related-party balances clear? Are unresolved tax positions documented?
These are not the most exciting parts of building a company, but they matter.
When the answers are clear, due diligence is easier. When they are not, small issues can quickly become distractions.
7 EOFY checks investors may look for before the data room
Here are the key areas worth reviewing before the new financial year begins.
1. Payroll hygiene
Payroll is one of the first places to look.
As a company grows, payroll usually becomes more complex. There may be new hires, salary changes, bonuses, leave balances, payroll tax exposure, contractor arrangements and different state-based considerations.
EOFY is a good time to check whether payroll records are complete, current and easy to reconcile.
That means reviewing employee records, wages and salary changes, leave balances, bonuses and commissions, PAYG withholding, payroll tax exposure, payroll journals and contractor classifications.
The goal is simple: if someone asks how people have been paid, what has been withheld and whether the records match the accounts, the answer should be easy to find.
Payroll issues can create friction because they are rarely isolated. They can affect PAYG, STP, super, payroll tax, employee entitlements and contractor risk.
That is why payroll hygiene is more than an admin exercise. It is a foundation for clean reporting.
2. BAS and GST
BAS and GST records should be complete, consistent and easy to reconcile. This sounds basic, but small issues can build up over time. Late lodgements, unusual adjustments, mismatched GST treatment, coding errors or unreconciled balances can all create questions later.
At EOFY, check whether BAS lodgements are complete, whether GST collected and GST paid reconcile to the accounts, whether adjustments are documented and whether GST treatment is consistent across revenue streams.
It is also worth reviewing overseas revenue or expenses, old liabilities or credits sitting on the balance sheet, and whether the BAS position matches management accounts.
The aim is not just to lodge. It is to make sure the BAS position makes sense when compared to the accounts. This becomes especially important during due diligence. If a company is raising or preparing for a sale, advisors will often look at whether tax reporting matches the financial records. If it does not, the team may need to explain or fix historical positions.
3. Super and STP
Super and Single Touch Payroll are easy to treat as routine because they sit inside the payroll process. But for investors, boards and advisors, they are part of the basic hygiene of the business.
EOFY is a good time to check that super contributions have been calculated, paid and recorded correctly, and that STP reporting reflects the payroll position.
Review whether super contributions are up to date, whether they match payroll records, whether employee fund details are accurate, whether late or missed payments have been identified and whether STP data has been finalised correctly.
It is also worth checking whether payroll categories are mapped correctly and whether contractor arrangements create any super exposure. If there are issues, it is better to understand them early. Super or STP errors can create cost, admin and risk. They can also raise questions about whether the business has the right payroll controls in place.
4. R&D support
For many startups and scaleups, the R&D Tax Incentive can be an important part of the cash flow and funding picture. But the claim needs to be supported.
Before EOFY, review whether the business has clear records for eligible R&D activities, project descriptions, technical uncertainty, experimentation, staff time, contractor costs, supporting invoices, project notes and how R&D expenditure has been calculated.
A number in the accounts is not enough on its own. If investors, advisors or regulators ask about the claim later, the business needs to be able to explain what was claimed, why it qualifies and where the supporting evidence sits. For venture-backed companies, this matters because R&D can affect cash flow, runway and investor confidence. If the claim is material, it needs to be defensible.
5. Director loans and related-party balances
Director loans, founder reimbursements and related-party transactions should be easy to explain.
In early-stage and scaling businesses, it is common for founders or directors to move money in and out of the company. There may be reimbursements, short-term funding, expenses paid personally, amounts owed to directors or amounts borrowed from the company.
Related-party balances may also exist between group entities, founders, directors, shareholders, trusts, family entities or other related businesses. The issue is not always the existence of these balances. The issue is when they are unclear, undocumented or left sitting for too long.
At EOFY, review amounts owed by or to directors and founders, founder reimbursements, personal expenses paid by the company, expenses paid personally on behalf of the company, intercompany balances, shared costs between entities and any related-party loans or service arrangements.
Director loans and related-party balances can become awkward in a board or investor conversation if no one can explain what they relate to, why they exist or how they will be resolved.
Clear records make the position easier to manage.
6. Contractor records
Contractor classification is one of the most common areas where fast-growing companies can create risk without meaning to.
Early on, contractor arrangements can feel flexible and practical. But as the business grows, some contractor relationships may start to look more like employment in practice.
EOFY is a good moment to review whether contractor arrangements still match reality.
Consider whether the contractor controls how the work is done, whether they work independently or under direction, whether they are paid for outcomes or time worked, whether they are integrated into the team, whether they use their own tools and systems, and whether they work for other clients.
It is also worth checking whether the contract reflects the actual working relationship, and whether invoices, agreements and payment records are easy to locate.
This is not just a legal technicality.
If someone is treated as a contractor on paper but looks like an employee in practice, the business may face questions around PAYG, super, payroll tax, leave entitlements and employment risk.
During diligence, contractor classification can become a bigger issue because it may point to hidden liabilities.
7. Unresolved tax positions
Not every tax issue can be resolved immediately. But unresolved tax positions should not sit in the background without a plan.
EOFY is a good time to identify open issues and decide what needs to happen next.
That may include old liabilities, uncertain tax treatments, outstanding ATO correspondence, payroll tax exposure, GST treatment questions, R&D uncertainty, contractor-related exposure, private company loan issues or unclear related-party positions.
The goal is not perfection. It is visibility.
If there is an issue, the business should know what it is, how material it is, whether advice is needed and what the plan is.
That is far better than discovering the issue during a raise, board review or transaction process.
EOFY compliance checklist
Before closing off the year, scaling companies should consider whether they have reviewed:
- Payroll records and reconciliations
- PAYG withholding
- BAS and GST reconciliations
- Superannuation payments and records
- STP reporting and finalisation
- R&D claim support
- Director loans and founder balances
- Related-party transactions
- Contractor classification
- Open or unresolved tax positions
This is not about creating unnecessary process. It is about making sure the business is not carrying avoidable issues into the new financial year.
The real value of EOFY readiness
EOFY readiness is not just a compliance exercise.
For a scaling company, the real value is knowing where things stand before someone else asks.
Can you explain the numbers? Are the key records easy to find? Are old issues still sitting in the background? Has the business kept up with its obligations as it has grown?
Those details matter. They help investors, boards and advisors build confidence in the way the company is being run.
Clean records will not remove every question from a capital raise, exit process or due diligence review. Questions are part of the process. What clean records can do is make the answers easier to find.
That means less back and forth, fewer avoidable distractions and more time spent on the opportunity ahead.
Need help getting your EOFY records in better shape?
Getting your EOFY records in order can feel like one more thing on the list. It is also one of those jobs that pays off later.
LUNA works with startups, scaleups and venture-backed companies to bring more structure to their accounting, tax and financial foundations.
Whether you are preparing for a raise, heading into a board review, planning for an exit or simply trying to start the new financial year with cleaner records, our team can help you work out what needs attention.
We can review your EOFY position, identify gaps and help clean up the records that matter most.
If you’d like a hand getting your EOFY records in better shape, our team is here to help!
FAQ
What should a scaling company review at EOFY?
EOFY is a good time to review the records most likely to create questions later.
For scaling companies, that usually includes payroll, PAYG withholding, BAS and GST, superannuation, STP reporting, R&D support, director loans, related-party balances, contractor arrangements and any unresolved tax positions.
The goal is not just to close the year. It is to make sure the business can answer questions clearly if investors, boards, advisors or buyers ask.
Why does EOFY matter for venture-backed companies?
For venture-backed companies, EOFY is a chance to get the business investor-ready from a records perspective.
Clean records make board reporting, capital raises, due diligence and exit planning easier. They also help the company look more organised when external parties start reviewing the numbers, contracts and compliance history.
What is payroll hygiene?
Payroll hygiene means keeping payroll records accurate, current and easy to reconcile.
The business should be able to show who was paid, what was withheld, what leave has accrued, whether superannuation has been handled correctly and whether payroll records match the accounts.
Good payroll hygiene reduces the risk of messy questions later, especially during due diligence or a board review.
Why is contractor classification important?
Contractor classification matters because the contract is only one part of the picture.
A person may be called a contractor on paper, but the day-to-day working arrangement may look closer to employment. That can create exposure around PAYG, superannuation, payroll tax, leave entitlements and employment obligations.
For scaling companies, this can become a bigger issue during due diligence if investors or advisors identify potential hidden liabilities.
Why does R&D support matter at EOFY?
If a company is claiming the R&D Tax Incentive, it needs records to support the claim.
A number in the accounts is not enough. The business should be able to explain what was claimed, why it qualifies and how the costs were calculated.
Useful records may include project notes, technical evidence, staff time records, contractor costs, invoices and calculations that connect the R&D claim back to the accounts.
How can LUNA help with EOFY compliance?
LUNA can review your EOFY records, identify gaps and bring more structure to your accounting, tax and finance processes.
This support is useful for companies preparing for a capital raise, board review, exit process or due diligence review, as well as for teams that want to carry cleaner records into the new financial year.