As the End of Financial Year (EOFY) approaches, non-profit organisations across Australia are busy finalising their books, preparing reports, and ensuring compliance with the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Taxation Office (ATO). But without expert EOFY accounting support, this period can be overwhelming—and mistakes can be costly.
We have identified the five most common pitfalls that charities and not-for-profit organisations face this time of year. Here’s how to avoid them and set your organisation up for long-term success.
1. Leaving EOFY Preparation to the Last Minute
The Mistake: Non-profits often focus so much on service delivery that EOFY preparations are left until June—leading to errors, missed deadlines, and stress.
How to Avoid It: Start planning your EOFY non-profit reporting at least two months ahead. Create a detailed checklist: review financial records, reconcile bank statements, update donor and grant records, and book in a session with your accountant. Early preparation means fewer surprises and more time to make strategic EOFY decisions, such as tax concession claims or financial planning for the new year.
2. Incomplete or Inaccurate Financial Records
The Mistake: Poor record-keeping makes it harder to generate accurate financial reports and comply with ACNC and ATO standards.
How to Avoid It: Use a cloud-based accounting system designed for non-profits and maintain it throughout the year. Record donations, grants, expenses, volunteer hours, and in-kind contributions accurately. Schedule quarterly internal reviews or work with a qualified accountant to ensure your books are always audit-ready.
3. Misunderstanding Tax Obligations and Concessions
The Mistake: Many non-profits miss out on key tax concessions or mistakenly assume full exemption from tax obligations, leading to lost financial benefits or compliance risks.
How to Avoid It: Understand your eligibility for non-profit tax exemptions and rebates such as GST concessions, FBT rebates, and income tax exemptions. Ensure your charity registration is current with both the ACNC and ATO. Regularly review your status with a qualified non-profit accountant in Australia who can help you navigate complex tax legislation and identify potential savings.
4. Overlooking Governance and Reporting Obligations
The Mistake: Financial compliance is just one part of EOFY. Many charities forget to meet governance reporting requirements, including annual reports for the board or compliance submissions to the ACNC.
How to Avoid It: Treat EOFY as a governance checkpoint. Prepare complete financial statements, a forward-looking budget, and an impact-driven annual report. Make sure your board signs off on all documents and that your ACNC report is prepared well in advance of the due date.
5. Failing to Plan Strategically for the Year Ahead
The Mistake: Treating EOFY purely as a compliance deadline rather than a strategic opportunity can hinder your non-profit’s financial growth.
How to Avoid It: Once your books are closed, take time to analyse your organisation’s financial health. Did you meet your budget goals? Were any funding sources unstable? Were any programs under- or over-funded? Use these insights to develop a stronger financial strategy aligned with your mission and impact goals.
Need Expert EOFY Accounting for Your Non-Profit?
Avoiding these common EOFY mistakes isn’t just about compliance—it’s about empowering your non-profit to thrive.
At Hopscotch Accounting we provide specialist accounting services for not-for-profits across Australia, from EOFY preparation and financial reporting to strategic planning and tax advice, we’re here to support your mission.
Contact us today to schedule a consultation and take the stress out of EOFY – 📞 1300 HOP 123 or www.haccounting.com.au.
