Navigating the Next Chapter: EOFY Strategic Focus for Australian Leaders

As June 30 approaches, the end of the financial year (EOFY) for Australian businesses isn't just about ticking compliance boxes. For CEOs, founders, boards, and executive leaders, it’s a critical inflection point – a moment to pause, reflect, and strategically reposition your organisation for the coming 12 months. In an environment marked by ongoing economic and geopolitical uncertainty, a thoughtful transition from one financial year to the next isn't just good practice; it’s essential for sustained success.

Business dashboard

I've always viewed the EOFY as less of a finish line and more of a strategic pit stop. It’s a chance to recalibrate, much like a well-oiled machine needs regular servicing to perform optimally. The past few years have certainly taught us the value of agility and resilience. We’ve collectively navigated disruptions from global pandemics to supply chain instabilities and shifting consumer behaviours. So, as we close out this financial year and prepare for a new one, what should our priorities be?

Closing Out the Current Financial Year: More Than Just Numbers

While meeting financial obligations and optimising your tax position are certainly important components of EOFY, thinking beyond immediate adjustments can unlock far greater value. This period offers a unique opportunity for a holistic review of your business's health and trajectory.

Here are some areas I encourage leaders to deeply examine:

• Financial Health Check and Performance Review: Go beyond the standard profit and loss statement. Dig into your balance sheet and cash flow reports. Were your financial targets met? If not, what were the underlying reasons? This isn't about assigning blame but understanding drivers. Look at key performance indicators (KPIs) relevant to your sector. For instance, in retail, it might be average transaction value and customer churn; in technology, perhaps user acquisition cost and lifetime value. Understanding these metrics provides a clear picture of what worked and what didn't, setting the stage for more informed decisions.

• Operational Efficiency and Asset Optimisation: Review your operational workflows. Are there areas of inefficiency that could be streamlined? For businesses with physical assets or inventory, a thorough review is crucial. Identify slow-moving or underutilised assets that could be redeployed or divested. This not only frees up capital but can also improve overall operational leaness.

• Talent Strategy and Employee Engagement: Beyond ensuring all employee obligations are met, consider this a chance to review your talent strategy. In a tight labour market, retaining your best people is paramount. Are your remuneration strategies competitive? Are there professional development opportunities that could enhance your team's capabilities and engagement? A highly skilled and motivated workforce is a significant competitive advantage.

• Customer and Supplier Relationships: Examine your accounts receivable and payable. Are there long-standing debts that need active pursuit? Conversely, assess your supplier relationships. Can you negotiate better terms or strengthen partnerships that benefit both parties? Strong relationships with customers and suppliers underpin long-term stability and growth.

  
  

Setting the Stage for the New Financial Year: Strategic Agility

The start of a new financial year isn't just a reset; it’s an opportunity to implement lessons learned and plan with deliberate agility. In times of economic volatility, a rigid, multi-year plan can quickly become outdated. Instead, I advocate for a flexible, scenario-based approach.

• Revisit Your Strategic Plan (with a Flexible Lens): This isn't about discarding your long-term vision, but rather reviewing it in light of current realities and projected uncertainties. What are the macroeconomic forecasts for Australia and globally?  How might interest rate movements, inflation, or geopolitical shifts impact your sector? Deloitte suggests that in unpredictable times, “planning and agility are critical… Businesses need a robust plan that covers iterative milestones towards their goals” (Mintrix Business Advisory, 2025). This means breaking down big-picture goals into smaller, adaptable steps.

• Scenario Planning: The "What If" Game: One of the most powerful tools in an uncertain environment is scenario planning. Instead of a single forecast, develop a few plausible scenarios – a "best case," "worst case," and "most likely" for the next 12-18 months. What would each scenario mean for your revenue, costs, and cash flow? How would your business react? This exercise helps identify potential vulnerabilities and allows you to develop contingency plans proactively, rather than reactively.

• Cash Flow Forecasting and Contingency Funds: While not a tax focus, maintaining robust cash flow projections is vital. Project your cash inflows and outflows for at least the next 3-6 months, ideally longer. If a shortfall appears likely, you have time to act – whether that means re-negotiating terms, delaying non-essential investments, or exploring financing options. Maintaining a healthy cash reserve, even a month or two of operating costs, provides a vital cushion against unexpected shocks.

• Customer and Market Responsiveness: Consumer behaviour can change rapidly. During the pandemic, for instance, many businesses quickly pivoted to online models or contactless delivery. This new financial year is a good time to re-engage with your customers. What are their evolving needs? Are there new opportunities for product or service development? Staying close to your customer base ensures your offerings remain relevant and compelling.

• Technology and Digital Advancement: The past few years have underscored the importance of digital capability. CPA Australia's annual Asia-Pacific Small Business Survey consistently highlights a strong correlation between technology adoption and business growth. Is your technology infrastructure robust enough to support your strategic goals? Are you leveraging data analytics to inform decision-making? Are there new digital tools that could enhance efficiency or open up new markets?

  
  

Leadership in the Face of the Unknown

Finally, as leaders, our role in uncertain times extends beyond financial and strategic planning. It's about clear communication, building trust, and maintaining a steady hand. Being transparent with your team about the challenges and opportunities ahead can strengthen internal cohesion and motivation. The journey into a new financial year, particularly in our current climate, demands not just diligence but also a healthy dose of adaptability and forward-thinking courage. By strategically addressing the close of the current financial year and embracing a flexible approach to the next, Australian leaders can position their organisations not just to survive, but to truly thrive.

Author of ‘Meaningful Work: Unlock Your Unique Path to Career Fulfilment’, Nina Mapson Bone is a people strategist, consultant, chair and keynote speaker. She consults with boards, CEOs, founders and executives on bridging the disconnect between strategy and the needs, motivations and capabilities of their people. Nina’s executive career has spanned three continents and diverse sectors. She was previously the Managing Director of Beaumont People, where she led a period of significant growth for the organisation, during which it was recognised with multiple awards. For more information visit www.nmbpeoplestrategy.com.au