What is EOFY (End of Financial Year)?

EOFY – End of Financial Year (Definition)

EOFY is the abbreviation for end of financial year or end of fiscal year. A financial year is for a period of 12 months of trading and is used for tax purposes. This is a time when all businesses are required to finalise their books for a 12-month period and report all income and claim any deductions available to the business. This helps to determine how much tax the business must pay to the government or how much tax the government owes the business. There is usually a grace period in which you must prepare and lodge your tax return without incurring any penalties. Depending on where you’re located, the end of financial year could be June 30, March 31, September 30, or December 31. Some countries run off other dates, such as April 5 in the UK.