When Should You Start Legal Planning for the End of Financial Year?
As the end of financial year (EOFY) approaches, many business owners focus on accounting and tax matters—but legal planning is just as critical. Delaying legal review until the final weeks can expose your business to unnecessary risks and missed opportunities.
So, when should you start EOFY legal planning? Ideally, several months before 30 June—because thorough preparation takes time and expert input, especially if contract negotiations are required.
Here are four key areas where legal aspects play a crucial role in EOFY planning:
Are Your Contracts, Leases and Employment Agreements Up to Date?
EOFY is a great time to review your legal documents and agreements. This includes:
- Commercial contracts nearing renewal or termination
- Lease agreements with upcoming deadlines or rent review clauses
- Employment contracts, especially if roles or remuneration structures have changed
Outdated or ambiguous terms can lead to disputes, compliance breaches or financial exposure. Early legal review helps you renegotiate, update or terminate agreements with minimal disruption.
Do Your Contracts require action?
For example:
- are you entitled to increase pricing on certain contracts?
- some contracts may automatically roll over resulting in another year of engagement which may not necessarily suit your business.
- alternatively, some contracts may be about to expire and require action to avoid loosing a critical customer or service.
Are Your Legal and Accounting Strategies Aligned?
EOFY is not just a numbers game—it’s a strategic opportunity. Legal and accounting planning should go hand in hand, particularly when:
- Restructuring your business or consolidating entities
- Reviewing contract pricing, both from a supplier and customer perspective
- Transferring assets or managing director loan accounts
Without legal input, even well-intentioned accounting decisions can trigger unintended legal consequences. Alignment ensures your business is protected across the board.
What Role Should Legal Play in Your EOFY Planning?
Legal isn’t a ‘set and forget’ area—it affects all areas of your business from risk management to growth strategy. Whether you’re preparing for an audit, seeking investment, or entering new agreements in the next financial year, legal oversight is essential.
EOFY legal planning also allows you to address ongoing obligations, such as updating your company’s constitution or reviewing compliance with privacy, consumer and employment laws.
Don’t leave legal planning to the last minute—talk to us today to get ahead.
EOFY can be stressful, but with the right legal guidance, it doesn’t have to be. The team at Gladwin Legal understands the commercial and compliance pressures businesses face. We’re here to help you stay one step ahead.