Mid-Financial-Year Checklist for Business Owners

JH Bookkeeping Solutions
Jan 2
3 min read

Two quarters down. Two to go. Now’s the time to reset — not panic.

If you’re running a small to medium business, the middle of the financial year is one of the best times to pause, take stock, and make small changes that can make a big difference by 30 June.

You don’t need a full overhaul — but you do need visibility. This checklist is designed to help you understand how your business is really tracking, using the tools you already have (hello, Xero), and to set yourself up for a far smoother EOFY.

1. Review your Profit & Loss (not just your bank balance)

Your bank balance tells you what cash you have today. Your Profit & Loss tells you how your business is actually performing.

At mid-year, take the time to:

review income and expenses year to date
compare results to last year
spot any costs that have quietly crept up

In Xero, run a year-to-date Profit & Loss and use it as a decision-making tool, not just a compliance report.

2. Start provisioning for BAS and tax (if you haven’t already)

One of the biggest stress points for business owners isn’t tax — it’s surprise tax.

If you don’t already have one, set up a separate BAS & tax savings account and start putting money aside regularly. This helps smooth cashflow and avoids the shock of large BAS or tax bills landing unexpectedly.

Accurate, up-to-date bookkeeping in Xero makes this far easier to manage.

3. Understand your tax position

Tax doesn’t just appear out of nowhere — but it can feel like it if you’re not prepared.

Once prior-year tax returns are lodged, the ATO may add Pay As You Go (PAYGI) instalments to your quarterly BAS. This catches many business owners off guard, especially if they’re budgeting only for GST.

Mid-year is the ideal time to:

check whether PAYG instalments apply (or are likely to)
understand what they’re based on
start setting money aside gradually rather than scrambling later

Clean books and reliable reports mean fewer surprises and better planning.

4. Look closely at subscriptions and recurring expenses

Subscriptions are one of the most common places money quietly leaks.

Mid-year is a great time to:

cancel software you no longer use
identify duplicate tools
review price increases that may have gone unnoticed

Running clean reports in Xero makes recurring expenses much easier to spot and review.

5. Review your pricing

If your costs have increased but your prices haven’t changed, your margins are shrinking — even if sales still look healthy.

Ask yourself:

are my prices still sustainable?
am I charging appropriately for my time and expertise?
do my numbers support the lifestyle I want from the business?

Your Profit & Loss holds the answers.

6. Make sure payroll and super are clean and up to date

Payroll issues tend to snowball if left unchecked.

Mid-year is a good point to:

confirm wages have been processed correctly
ensure super is up to date
check whether your payroll setup still suits your business

Sorting this now reduces compliance risk and stress later in the year.

7. Use your Xero dashboard as a business tool

Your Xero dashboard isn’t just for your bookkeeper or accountant.

Use it to:

monitor cash coming in and going out
keep an eye on overdue invoices
understand short-term cashflow trends

If you’re not looking at it regularly, you’re making decisions without the full picture.

8. Lean on your bookkeeper for clarity (not just compliance)

A good bookkeeper does more than lodge BAS.

They help ensure:

your data is accurate
your reports actually make sense
your numbers reflect reality

That clarity gives you confidence to make better business decisions — not just meet deadlines.

9. Book tax planning before 30 June

This one is critical.

Meeting with your accountant before EOFY (not after) means:

no rushed decisions
fewer missed opportunities
no nasty surprises once the year is over

Clean books plus early tax planning give you options — and peace of mind.

Final thought

You don’t need everything to be perfect by mid-year — but you do need visibility.

A small amount of time spent now, supported by good bookkeeping and the right conversations, can make the second half of the financial year far less stressful — and far more profitable.

If you’re unsure what your numbers are really telling you, mid-year is the perfect time to ask.