July provides a rare opportunity. The financial year has closed, your results are becoming clear, and you have fresh data to guide the next 12 months. Businesses that use this period effectively tend to make better decisions, manage cash flow more confidently, and avoid tax surprises later in the year.

Here are the key actions every business should be taking in July.

1. Review What the Numbers Are Actually Telling You

Most business owners look at revenue first, but revenue growth alone doesn’t tell the full story. The better question is whether the business became more profitable.

With EOFY reports available, now is the time to assess:

• Gross profit margins
• Net profit performance
• Expenses that increased unexpectedly
• Areas where revenue grew but profitability didn’t
• Cash flow trends throughout the year

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We’ve seen businesses increase turnover only to discover profits remained flat due to rising labour, supplier, or operating costs. This is something to watch out for now more than ever, as we’re experiencing a tightening of economic conditions across industries.

2. Update Your Budget Based on Reality

Budgets should be revisited regularly. The beginning of a new financial year is the perfect time to create your annual forecast and set clear financial targets for the months ahead. However, strong businesses don’t rely solely on a yearly budget; they maintain rolling 12-month, 6-month and quarterly forecasts.

Things to consider in a budget review:

• Expected sales volumes
• Changes in staffing costs
• Supplier price increases
• Rent, utilities and operational expenses
• Planned investments in equipment, technology or marketing

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By integrating business advisory with accounting expertise, The Co can help you make the most of this financial data to set realistic budgets that function as ongoing benchmarks for measuring performance.

3. Check Your Cash Flow Position

This time of year, many businesses face a combination of:

• Outstanding debtor balances
• Upcoming BAS obligations
• Superannuation commitments
• Tax payments
• Slower winter trading periods

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Together, these can quickly put pressure on available cash. Review what money is expected to come in, what commitments are due, and whether there are any periods where cash may become tight.

4. Prepare for Upcoming Tax and Compliance Obligations

July is an important month for ensuring records are complete and upcoming lodgements are planned for. Depending on your business structure, this may include:

• BAS preparation
• Payroll reconciliations
• Payroll tax
• WorkCover 
• Superannuation obligations

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Waiting until deadlines approach often creates unnecessary pressure and increases the risk of errors. This year, proactive tax planning is especially important given significant structural tax reforms are taking effect.

Read More: Our Guide to Tax Planning

5. Review Debtors and Outstanding Invoices

One of the fastest ways to strengthen cash flow is by focusing on money already owed to your business. If overdue invoices or outstanding customer payments carried over from the last financial year, now is the perfect time to review your collections process and assess:

• Overdue invoices
• Long-standing debtor balances
• Clients with recurring late payment patterns
• Credit terms and payment processes

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Many businesses discover significant working capital tied up in receivables that could be recovered through improved follow-up procedures.

6. Reassess Pricing and Profit Margins

EOFY reporting often highlights products, services or clients that are less profitable than expected. With increasing costs across wages, utilities, software and suppliers, many businesses are operating on margins that no longer reflect current market conditions.

July is an appropriate time to review:

• Pricing structures
• Service profitability
• Product margins
• Client profitability
• Cost recovery strategies

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Small pricing adjustments implemented early in the financial year can have a significant impact on annual profitability.

7. Set Clear Financial Targets

Businesses that consistently achieve growth typically have measurable targets rather than broad ambitions. Instead of aiming to “grow revenue”, consider establishing targets around:

• Monthly revenue
• Gross profit percentage
• Net profit
• Cash reserves
• Debtor days
• Labour efficiency
• Business development activities

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Clear financial goals provide accountability and allow performance to be monitored throughout the year.

Related Reading: Financial Metrics Every Business Should Track

8. Meet With Your Advisor Before Problems Arise

Many business owners only speak with their tax accountant this time of year, but the most successful businesses use July as a broader strategy planning period, and not just a compliance checkup.

A comprehensive review can help identify:

• Opportunities to improve profitability
• Tax planning strategies
• Cash flow risks
• Growth opportunities
• Operational inefficiencies
• Investment decisions for the year ahead

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The earlier issues are identified, the more options are available to address them. Not sure if you should invest in an advisor? Here are ten benefits of business advisory.

The EOFY insights you get from your accountants provide valuable information, but the real value comes from what happens next. The most successful businesses perform business health checks regularly, even if it seems like things are going well.

July is a great time to analyse results, refine plans, and set the tone for the financial year ahead.

If you’re unsure what your EOFY results are telling you or want to create a practical plan for the future, seeking professional advice early can help turn financial data into meaningful business decisions.