3 things you MUST have on your end-of-financial year business checklist

Your FY2026 budget may already be drafted, but before year-end, take a deeper look under the hood.

It’s not just about revenue figures — it’s about the confidence you can place in the assumptions behind them:

• Are top-line forecasts relying on unrealistic stretch or aggressive project timelines or client ramp-ups?
• Are there macroeconomic factors (interest rates, investment appetite, policy changes) that could shift your outlook?
• Has recent performance data revealed any soft spots in pipeline conversion or renewal cycles?

As CFOs it’s our job to stress-test the forecast before the new year begins. If there are cracks in the assumptions, it is better to address them now, rather than defend missed targets six months in.

EOFY is a critical time for cash and capital planning — especially if your business is navigating investment cycles, capital returns, or shifting funding environments.

Ahead of 30 June 2025:

• Run a short-term liquidity analysis, factoring in tax obligations, superannuation, and any bonus accruals or provisioning.
• Revisit your working capital posture — can you shorten receivables or renegotiate terms without straining relationships?
• Ensure debt facilities and covenants are reviewed, particularly if you expect market conditions to tighten in FY2026.

At Ark Capital, we operate in commercial real estate debt — a sector where capital is always moving, and access to liquidity is fundamental. But this advice holds true across industries: year-end is the time to ensure you’re entering the new year with a resilient cash position and no surprises.

It’s tempting to treat June as the end of a sprint, but it’s also a valuable strategic moment. The best CFOs use EOFY to influence business planning, not just sign off on reports.

Three things I do during this time:

• Reflect on what drove real performance in FY2025 — was it margin discipline, market timing, internal execution?
• Document the major challenges — and the actions that created resilience or course correction.
• Align with the executive team on 2–3 strategic priorities for FY2026, supported by clear financial levers.

This is also when we reassess reporting and forecasting tools — are they giving us what we need to lead the business, or just satisfy compliance?

At Ark Capital, our main strategic focus is commercial real estate debt (CRED), so one major task for us is to prepare for any potential challenges, like a more competitive lending landscape, in the property and lending markets for the new financial year. So, for FY2026 we’re refining our internal models and reviewing our exposure scenarios before 1 July. It’s all about making sure the strategy is informed, realistic, and flexible enough to adapt as conditions evolve.

As we approach 30 June 2025, challenge yourself and your team to use this time wisely. EOFY isn’t just a reporting finish line — it’s a springboard into FY2026.

Whether you’re already in the CFO seat or preparing for it, the way you close this year can set the tone for how you lead into the next.