EOFY 2025: A construction business guide to staying ahead

As we approach the end of the 2024–25 financial year, the Australian construction sector finds itself at a crossroads. Industry-wide challenges like material price hikes, regulatory change, and labour shortages continue to mount — but so too do the opportunities.

For construction business leaders, EOFY is more than just a tax deadline. It’s a chance to take stock, forecast smarter, and set the foundation for a resilient and profitable year ahead.

Here’s how to wrap up FY24 effectively, and get ready to build even stronger in FY25.

The big picture: Where the construction industry stands in 2025

There’s no denying the past few years have been turbulent for the construction sector. Inflation, material costs, and workforce shortages are still biting, but technology adoption is helping the most adaptable businesses stay afloat — and even thrive.

While major cities are experiencing different rates of growth, there’s a consistent theme: projects are taking longer to complete and cost more than in previous years. Combined with continued supply chain constraints and regulatory shifts, it’s creating a highly complex operating environment.

But challenges breed innovation. From smarter procurement and AI-powered design tools to modular construction and digital twins, there’s a noticeable shift toward efficiency and resilience. For EOFY planning, this means more than just reporting — it means strategic thinking.

1. Get your financial house in order

EOFY is your chance to review the numbers — but it shouldn’t be about box-ticking. Conduct a full audit of your financials, including:

• Revenue recognition: Ensure all project milestones are accurately invoiced.
• WIP (Work in Progress) analysis: Are you overcapitalising or underbilling on key jobs?
• Cash flow forecasting: Do you have clear visibility of income and outgoings for the next 6–12 months?

Good financial hygiene also means making sure your compliance is watertight — from PAYG withholding to superannuation contributions. If you’re not already working with an accountant experienced in construction, now’s the time to engage one.

2. Review project performance (not just profits)

EOFY is a great time to assess which projects performed well — and why. Go beyond the P&L and look at:

• Delivery timelines: How accurate were your estimates versus actuals?
• Resourcing: Were you adequately staffed, or stretched too thin?
• Supply delays: What slowed you down, and how can you mitigate it next time?

This type of project-level analysis helps refine bidding strategies and improves margin protection in the new financial year.

3. Stay ahead of industry shifts

Rising environmental standards and green building practices are fast becoming non-negotiable. Clients expect lower carbon footprints, while regulators are demanding better waste and energy management.

Staying ahead means being proactive:

• Factor sustainability into tenders and proposals.
• Consider upskilling your team on green compliance.
• Explore smart materials or prefab methods that reduce waste.

4. Embrace technology (if you haven’t already)

Technology adoption isn’t about being flashy — it’s about efficiency, risk management, and profitability. Construction software tools like project tracking, quoting, and workforce management platforms are now essential.

Some trends to watch:

• Digital twins: These allow real-time simulation of buildings under construction, minimising errors before physical work starts.
• AI and machine learning: Used for site scheduling, predictive maintenance, and safety monitoring.
• Cloud-based job costing tools: Give you up-to-the-minute visibility on profitability across multiple sites.

5. Audit your workforce and labour strategy

The skills shortage isn’t going away anytime soon. Industry operators agree that retention and attraction strategies are just as important as recruitment. EOFY is the perfect time to:

• Review subcontractor agreements and performance.
• Check your payroll compliance — especially superannuation and award interpretations.
• Consider succession planning and career pathways for junior staff.

Investing in workforce tech, like digital time tracking and scheduling platforms, can also reduce admin burden and help manage costs more effectively.

6. Plan for growth — but be strategic

While growth is on the agenda for many construction firms in FY25, it needs to be balanced with caution. The next 12 months will be shaped by rising insurance premiums, tougher lending conditions, and volatile material pricing.

A few things to consider:

• Reassess your insurance policies — are they still appropriate for your level of risk?
• Build cost buffers into your pricing to allow for unforeseen supplier increases.
• Explore new verticals or smaller-scale developments that align with your core capabilities.

EOFY: Not just an ending, but a strategic reset

In a sector that’s always on the move, EOFY provides a unique opportunity to slow down, reflect, and reset. The best-performing construction businesses aren’t just financially compliant — they’re strategic, agile, and prepared for what’s next.

Whether that means embracing digital platforms, rethinking team structures, or investing in compliance and training, EOFY is your launch pad for a smarter FY25.

So before you close the books, ask yourself: is your construction business building for the future, or just getting through the present?

Want a clearer view of your profitability site-by-site? Learn how MYOB Acumatica helps construction firms build smarter.

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