Running a small business in New Zealand is no small feat. Between keeping customers happy, managing staff, and staying on top of compliance, Bookkeeping often slips through the cracks. Unfortunately, even small errors in financial record-keeping can lead to unnecessary stress, lost deductions, or penalties from Inland Revenue (IRD).
At CB Solutions, we work with Kiwi businesses every day and see the same bookkeeping mistakes pop up time and again. The good news? With the right systems, tools, and support, these common errors are easy to avoid.
Here are the top 7 bookkeeping mistakes NZ small businesses make - and practical ways to steer clear of them.
1. Mixing Personal and Business Finances
The mistake: Using one bank account for both personal and business transactions. This makes it harder to track expenses, calculate GST, and stay compliant with NZ tax requirements.
The fix: Open a dedicated business bank account. Separating your finances makes GST returns in New Zealand easier, provides a clearer picture of your cashflow, and keeps you audit-ready.
2. Not keeping Receipts and Records
The mistake: Relying solely on bank statements. Without proper records, you could miss out on legitimate deductions or face challenges in an IRD audit.
The fix: Use cloud-based tools like Xero, MYOB, or apps like Hubdoc to scan, store, and organise receipts digitally. This helps Kiwi businesses stay tidy, compliant, and stress-free.
3. DIY Bookkeeping without the know-how
The mistake: Managing your books without understanding GST in NZ, PAYE obligations, or Inland Revenue compliance rules.
The fix: Either invest in bookkeeping training or partner with a qualified NZ Bookkeeper. A professional ensures accuracy, saves you time, and gives peace of mind that you’re meeting all IRD requirements.
4. Skipping regular Bank reconciliation
The mistake: Waiting until year-end to reconcile. This often leads to errors, duplicate transactions, or overlooked income.
The fix: Reconcile weekly using your accounting software. Many Bookkeepers recommend this practice to keep your records in line with your actual cash position.
5. Missing GST deadlines
The mistake: Forgetting GST filing dates in New Zealand. This can lead to late penalties from IRD.
The fix: Mark GST deadlines in your calendar or outsource this task to a professional NZ bookkeeping service. At CB Solutions, we manage GST returns directly with IRD so Kiwi businesses never miss a deadline.
6. Misclassifying expenses
The mistake: Recording costs in the wrong category or accidentally claiming personal expenses as business ones. This distorts your Profit & Loss statement and could raise red flags with IRD.
The fix: Set up a clear chart of accounts in your accounting software or hire a Bookkeeper to correctly code expenses.
7. Not reviewing Financial Reports
The mistake: Making decisions based only on your bank balance. Without reviewing reports like Profit & Loss, Balance Sheet, or Cash Flow, you’re missing crucial insights.
The fix: Review financial reports monthly. These reports help Kiwi business owners plan for growth, manage cash flow, and make smarter decisions.
Final thoughts
Bookkeeping mistakes are common among small businesses, but they don’t have to hold you back. With the right systems, tools, and support, you can keep your finances accurate, compliant, and stress-free.
At CB Solutions, we specialise in helping New Zealand businesses with Bookkeeping, GST, Payroll, and IRD compliance. Whether you’re just starting out or looking to streamline your financial processes, we’re here to help.
👉 Ready to simplify your bookkeeping? Contact CB Solutions today and keep your Kiwi business on track.
FAQs
Do small businesses in NZ need a bookkeeper?
Not always, but many Kiwi business owners find it saves time and reduces errors. A NZ Bookkeeper ensures compliance with IRD requirements and keeps financial records accurate.
What’s the best accounting software for New Zealand small businesses?
Top choices include Xero, MYOB, and QuickBooks Online. Xero is often the most popular with Kiwi business owners due to its strong local support and easy GST features.
How often should I reconcile my bank account?
Weekly reconciliation is best practice. This keeps your records in line with your actual business cashflow and helps you avoid surprises at year-end.
Can I claim personal expenses as business expenses in New Zealand?
No. Only legitimate business-related expenses can be claimed. Mixing personal and business costs could trigger extra attention from IRD.
How do I avoid missing GST deadlines in NZ?
Use reminders in your accounting software, set up alerts, or outsource to a Kiwi bookkeeping service like CB Solutions to handle it for you.
