End of Financial Year Checklist for New Zealand Businesses
End of the financial year (EOFY) is a crucial time for Kiwi businesses. Whether you’re a small business, Soletrader, or Contractor in New Zealand, ensuring your Cccounts, Payroll, and tax obligations are in order is essential to avoid IRD penalties and start the new financial year on the right foot.
Here’s a practical EOFY checklist designed specifically for New Zealand businesses.
1. Review Your Financial Records
Accurate records are essential for IRD compliance and smooth tax filing.
Make sure you have all:
Bank statements for all business accounts
Sales and purchase invoices
Receipts and expense claims
Payroll records, including PAYE, KiwiSaver, and ACC contributions
Need help keeping your records organised? CB Solutions offers expert Bookkeeping services to simplify this process.
2. Reconcile Bank Accounts
Ensure your accounting software, like Xero or MYOB, matches your bank statements. Bank reconciliation helps spot missing transactions, errors, or potential fraud before filing taxes.
3. Finalise Payroll and Employee Obligations
If you have staff, make sure:
PAYE and KiwiSaver contributions are up to date
Annual leave, sick leave, and holiday pay are accurately recorded
All employee PAYE summaries are prepared
4. Review Debtors and Creditors
Send reminders to customers with outstanding invoices
Confirm that all supplier invoices are accounted for
Consider writing off bad debts if they are uncollectible
5. Check Fixed Assets and Inventory
Update your asset register
Depreciate assets according to IRD depreciation rules
Count and adjust inventory records for loss, damage, or wastage
6. Prepare Financial Statements
Prepare the following for your business:
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
These statements are essential for IRD reporting and for assessing your business performance. CB Solutions provides Accounting services to prepare accurate EOFY reports.
7. Review Tax Obligations
File provisional tax or terminal tax if applicable
Ensure GST returns are up to date
Check for any other industry-specific taxes
8. Plan for Next Financial Year
Set budgets and financial goals
Review business processes and software
Plan for upcoming tax changes or IRD updates
9. Backup Your Records
Create a secure backup of all financial records. This ensures easy access for audits, tax filing, or future reference.
FAQs
When does the financial year end in New Zealand?
Most New Zealand businesses have a financial year ending 31 March, although some businesses can request a different balance date from the IRD.Do I need an Accountant for EOFY?
While not mandatory, an Accountant can help you maximise deductions, ensure IRD compliance, and reduce errors. CB Solutions offers professional Accounting and Bookkeeping services tailored for Kiwi businesses.What is provisional tax, and do I need to pay it?
Provisional tax is a prepayment of your income tax. Businesses exceeding certain income thresholds must pay it, based on your previous year’s earnings.How should I handle outstanding invoices at EOFY?
Send reminders, reconcile your accounts, and write off any uncollectible debts. Accurate records will reflect these adjustments in your financial statements.Can business losses be carried forward to the next financial year?
Yes. Losses can usually be carried forward to offset future taxable income, according to IRD rules.
Make your EOFY stress-free with CB Solutions. Our experienced team in Bookkeeping, Payroll and Accounting will help your New Zealand business stay compliant, organised, and ready for the new financial year.
Get in touch today.
