The start of a new financial year is the perfect time to reset and refresh your business operations. 

Whether you’re a sole trader or run a growing enterprise, reviewing and updating key processes ensures your business stays compliant, competitive, and on track for growth.

Here are the essential business processes to update at the beginning of the financial year:

1. Payroll and Employee Records

• Update PAYG withholding rates: Ensure you’re using the latest tax tables and payroll software settings.
• Review superannuation obligations: Check for any increases to the Superannuation Guarantee rate or changes to thresholds.
• Check award wage updates: If you employ staff under a modern award, the Fair Work Commission usually adjusts minimum wage rates on 1 July.
• Update employee leave balances and entitlements: Make sure carry-over balances are correctly accounted for. 

2. Budgets and Cash Flow Forecasts

• Set your annual budget: Use insights from the previous year to guide your new financial goals.
• Update your cash flow forecast: Plan for seasonal highs and lows, expected expenses, and upcoming investments.
• Review pricing: Factor in rising costs or market changes to ensure your pricing remains sustainable and competitive. 

3. Accounting and Bookkeeping Systems

• Close off the previous financial year: Reconcile accounts, lodge final BAS/IAS, and prepare for tax lodgement.
• Set up your ledger for the new year: Ensure your software is ready to record income and expenses from 1 July.
• Review Chart of Accounts: Clean up or reorganise account codes to improve financial reporting. 

4. Tax and Compliance Requirements

• Check for tax changes: Stay updated on any changes to small business concessions, company tax rates, or thresholds.
• Review GST registration and BAS cycles: Confirm your reporting obligations and update contact details with the ATO if needed.
• Book a tax planning session: Get tailored advice on deductions, depreciation, and forward planning strategies. 

5. Business Insurance and Risk Management

• Review insurance policies: Ensure your coverage reflects any business changes, new assets, or staffing levels.
• Update risk management procedures: Check workplace safety compliance and emergency procedures.

6. Team and Workflow Planning

• Set team goals and KPIs: Align your staff with business objectives and performance targets for the new year.
• Review internal systems: Evaluate your tech stack and consider automation or training to improve efficiency.

Use this opportunity to schedule an appointment with your accountant or business advisor. A fresh set of eyes can help you spot missed opportunities or risks, and give your business a stronger start to the year ahead.