EOFY is the Perfect Time to Review your Business Performance and Plan for the Year Ahead
Congratulations on taking the time to review your business performance and think about what you’d like to achieve in the next financial year.
For many business owners, the end of financial year becomes focused on tax returns, compliance obligations and finalising accounts.
However, EOFY can also be one of the best opportunities to step back from the day-to-day pressures of running a business and assess:
- what worked well,
- what created pressure,
- and where improvements can be made for the future.
The businesses that regularly review their financial and operational performance are generally better positioned to improve profitability, strengthen cash flow and make more confident business decisions.
At CFO On-Call, we work with business owners across a wide range of industries and have found there are several key areas that are important to review before starting a new financial year.
1. Do You Understand What Drove This Year’s Results?
Revenue growth does not always lead to stronger profits or healthier cash flow.
EOFY is a good time to review:
- sales performance,
- gross profit margins,
- overhead growth,
- and net profit trends.
Understanding what contributed positively to profitability — and what reduced it — helps you make better decisions moving forward.
It’s important to identify:
- which activities generated strong returns,
- which areas underperformed,
- and where costs may have increased faster than expected.
This provides a clearer picture of how the business actually performed during the year.
2. Have You Reviewed Pricing And Profit Margins?
Many businesses experience rising costs over time without adjusting pricing accordingly.
Labour, supplier costs, freight, utilities and overheads can all gradually reduce profit margins if pricing is not reviewed regularly.
EOFY is an ideal time to assess whether:
- your pricing remains commercially sustainable,
- margins are being maintained,
- and your products or services are generating acceptable returns.
Regular pricing reviews are often one of the simplest ways to improve profitability.
3. Do You Know Which Customers, Products Or Services Are Most Profitable?
Not all revenue contributes equally to business success.
Some customers or service lines:
- generate higher margins,
- pay more reliably,
- require less management time,
- and create stronger long-term opportunities.
Others may consume excessive resources for limited financial return.
Reviewing customer and service profitability can help you:
- focus future growth efforts,
- improve resource allocation,
- and make more strategic business decisions.
4. Has Cash Flow Improved Or Become More Difficult?
Cash flow continues to be one of the biggest challenges for many SMEs.
A business can appear profitable while still experiencing cash pressure because of:
- slow customer payments,
- increasing stock levels,
- project delays,
- rising expenses,
- or debt commitments.
EOFY is a valuable time to assess:
- how cash moved through the business during the year,
- where pressure points occurred,
- and what improvements can be made moving forward.
Businesses that proactively manage cash flow generally experience less stress and greater financial control.
5. Are Your Team And Systems Ready For The Next Stage Of Growth?
As businesses grow, operational challenges often become more visible.
This may include:
- staff capacity issues,
- inefficient systems,
- reporting limitations,
- workflow bottlenecks,
- or over-reliance on key people.
EOFY is an opportunity to review whether your current business structure can support future growth efficiently and sustainably.
Even relatively small operational improvements can have a significant impact on productivity, profitability and business owner workload.
6. Do You Have A Clear Plan For The Next Financial Year?
Many business owners enter the new financial year without:
- a realistic budget,
- cash flow forecasts,
- financial targets,
- or clear business goals.
Without a roadmap, decision-making often becomes reactive rather than proactive.
A well-prepared financial plan helps businesses:
- measure performance,
- anticipate challenges,
- improve accountability,
- and make decisions with greater confidence.
EOFY is one of the best times to put those plans in place.
EOFY Business Review Checklist
Before starting the new financial year, consider whether you have reviewed the following areas:
✔ Financial performance and profitability
✔ Pricing and gross profit margins
✔ Overheads and operating costs
✔ Cash flow performance
✔ Customer and service profitability
✔ Team structure and operational capacity
✔ Systems and business efficiency
✔ Key business risks and opportunities
✔ Goals for the next financial year
✔ Budgeting and cash flow forecasting
Final Thoughts
The end of financial year is not only about reviewing historical results.
It’s also an opportunity to improve the future performance of your business.
The businesses that regularly review performance, identify issues early and plan proactively are generally:
- more profitable,
- more resilient,
- and better prepared for growth.
Even small improvements in profitability, cash flow or operational efficiency can create meaningful long-term results.
Complimentary EOFY Business Review
CFO On-Call is offering a complimentary one-hour consultation to discuss your business performance, profitability, cash flow and planning for the next financial year.
If you’d like to have a discussion with one of our CFOs, please contact us to arrange a time.
