EOFY Cash Flow: How to Finish Strong and Start the New Year Fresh

EOFY is a double-edged sword for Australian small business cash flow. On one side, it’s a chance to collect outstanding debts, push final sales, and set up a strong July. On the other, it’s a time when cash goes out: tax bills, super payments, GST, new equipment purchases: all at once.

Getting your cash flow right around June 30 is one of the most practical things you can do for your business. Here’s how AI helps.

The EOFY Cash Flow Challenge

The cash flow crunch around June 30 is predictable: which means it’s manageable if you plan ahead. The businesses that struggle are the ones that don’t see it coming until it’s too late.

The typical EOFY cash outflows:

• Q4 super guarantee contributions (due 28 July, but smart businesses pay by mid-June)
• Q4 BAS / GST payment (due 28 July)
• Income tax instalments or final tax payment
• Equipment purchases to maximise instant asset write-off
• Prepaid expenses to bring deductions forward

None of these should be surprises. The goal is to have the cash ready for them: which means collecting what you’re owed before June 30, not after.

Step 1: Collect Your Outstanding Invoices Now

Run your aged receivables report right now. Any invoice over 30 days is a problem. Any invoice over 60 days is urgent.

AI makes collections faster:

Use ChatGPT to write professional, firm follow-up emails that don’t damage client relationships but actually get results.

Prompt to try:

“Write a polite but firm payment reminder email for an invoice that’s now 45 days overdue. The client is a long-standing customer. Include the invoice number, amount, and a request for payment by [date]. Keep it professional and warm, but make it clear payment is needed now.”

Prompt for a more urgent situation:

“Write a final payment demand email for an invoice that’s 90 days overdue. Include a 7-day deadline before we refer to a debt collection agency. Keep it professional but leave no room for ambiguity.”

AI-generated collection emails consistently outperform ad-hoc messages because they’re structured, clear, and don’t carry the emotional charge of writing them yourself when you’re frustrated.

Step 2: Forecast Your EOFY Cash Position

Before you make any decisions about prepaying expenses, buying equipment, or paying super early, you need to know your cash position for the next 8 weeks.

Tools that do this automatically:

• Xero Analytics Plus: built-in short-term cash flow forecast, updated in real time as you reconcile
• Float: visual cash flow forecasting, connects to Xero/MYOB, excellent for scenario planning
• Fathom: more sophisticated forecasting and reporting, popular with accountants

DIY with AI:

“Create a simple 8-week cash flow forecast template for a Google Sheet. Include: opening balance, expected income by week, known outgoings by week (wages, rent, supplies, super, BAS), closing balance, and a traffic light indicator for weeks where balance drops below $[X].”

Step 3: Review Your Pricing Before July 1

July 1 is the most natural and accepted time to raise prices in Australia. Clients expect it: minimum wages go up, award rates change, super goes up, inflation compounds. Most clients will accept a reasonable price increase with very little pushback if it’s communicated professionally and in advance.

How AI helps:

• Calculate the revenue impact of a 5%, 10%, or 15% price increase
• Draft the client communication
• Build new rate cards or service packages
• Review your current pricing against market rates

Prompt to try:

“My current annual revenue is $220,000. I’m planning a 10% price increase from 1 July. Assuming 80% of clients accept the increase, what’s my projected revenue impact in the first full year? Also calculate the impact of losing 10% or 20% of clients who don’t accept.”

Step 4: Plan Your July Cash Flow

The first two weeks of July are critical. You have:

• STP finalisation due 14 July
• Q4 BAS due 28 July
• Q4 super due 28 July (if not paid in June)
• New award wages kicking in from 1 July
• First pay runs of the new year at the higher super rate

Make sure you’ve invoiced enough before June 30 to have cash in the bank for these obligations. If your business has a slow July (many do), this is particularly important.

Step 5: Set Up Better Cash Flow Visibility for FY2026–27

The single best thing you can do for next year’s EOFY is set up proper cash flow visibility now, so you’re never surprised again.

The three-layer approach:

• Daily: Bank balance plus outstanding invoices. Xero’s dashboard shows this automatically.
• Weekly: Expected payments in vs. payments out over the next 30 days. Review every Friday.
• Quarterly: Full 90-day forecast with BAS, super, tax instalments as fixed items. Review at the start of each quarter.

Once this is set up, cash flow stops being a source of anxiety and becomes a planning tool.

EOFY Cash Flow Checklist

• ☐ Run aged receivables: chase everything over 30 days
• ☐ Build an 8-week cash flow forecast
• ☐ Identify EOFY cash outflows (super, BAS, tax) and confirm you have the cash
• ☐ Decide whether to prepay deductible expenses before June 30
• ☐ Decide whether to pay Q4 super early (to claim June 30 deduction)
• ☐ Review pricing: is July 1 the right time to increase rates?
• ☐ Invoice any outstanding work before June 30 (or delay if timing is strategic)
• ☐ Set up cash flow forecasting tool for the new year

The Businesses That Survive Are the Ones That Plan

Cash flow is the number one killer of small businesses in Australia: not lack of profit, lack of cash. Most cash flow crises are predictable and preventable. EOFY is an annual reminder of that.

Use this EOFY to collect what you’re owed, know your numbers, and set up the visibility you need to never be surprised by your own cash position again.

Related guides:

• 👉 EOFY AI Checklist for Australian Small Business
• 👉 New Financial Year Planning with AI: July 2026 Guide
• 👉 How to Use AI to Reduce Your Tax Bill (Legally)

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Sources & Further Reading

• business.gov.au. Cash Flow Management
• ATO. Activity Statements and BAS
• ATO. Writing Off Bad Debts
• AFCA. Banking, Credit and Finance Complaints
• ABS. Business Conditions and Sentiments
• ASBFEO. Small Business Counts

This guide is for general information only and does not constitute financial or tax advice. Consult a registered accountant or financial adviser for advice specific to your situation.

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