How to Prepare for the End of the Financial Year

Gina Gambitsis • January 30, 2025

A little work now will make next year much easier......

As we approach the end of the financial year (EOFY), it’s time to get your finances in order before the deadline hits on March 31st. Whether you’re a business owner, freelancer, or an individual taxpayer, preparing ahead will save you time, stress, and potentially some money. Plus, making our job easier will help ensure your tax return is filed smoothly and accurately. Here’s how you can gear up for EOFY and assist GCOL with a streamlined process.

On 1 April we will email out links to our electronic questionnaire system and make PDF questionnaires available on our website for completion. In preparation for this here are a few steps to make the process faster and easier.

1. Get Your Financial Records Sorted

One of the most important steps in preparing for EOFY is to ensure all your financial records are accurate and up to date. This includes:

Bank statements: Ensure all bank transactions, business or personal, are categorized correctly in your accounting software or spreadsheets or downloaded from your bank.
Invoices and receipts: Gather all your invoices and receipts for any income or expenses. Make sure you have copies of all sales, purchases, and any transactions that may be deductible (e.g., business expenses).
Employee records: If you have employees, make sure all payroll information is correct, including salary, wages, deductions, and KiwiSaver contributions.

2. Reconcile Your Accounts

Take the time to reconcile all your accounts, including:

Bank and credit card accounts: Match your bank statements with your accounting records to ensure everything is accounted for. If there are any discrepancies, now is the time to address them.
GST returns: If your business is registered for GST, check that all GST returns are filed correctly and up to date. This includes making sure the right amount of GST has been collected and paid.

Reconciliation helps avoid errors and makes our job far easier.

3. Review Your Business Expenses

If you're a business owner, it’s crucial to assess your expenses for the year. Double-check all business-related deductions, as they can lower your tax liability. Consider things like:

Office supplies
Equipment purchases
Travel expenses
Professional development costs (courses, seminars, etc.)
Home office expenses (if applicable)

Don’t forget to keep track of any assets that may have been depreciated during the year and consider whether there are any items you can write off for tax purposes.

4. Understand Your Tax Obligations

New Zealand has different tax rates and obligations depending on your income or business structure. Here are some key things to review:

Income tax: Check whether you have received any income that needs to be declared. For businesses, this also includes dividends, sales income, and other revenue streams.
PAYE: If you employ others, make sure all PAYE (Pay As You Earn) tax payments are up to date. Your accountant will need accurate PAYE records for their calculations.
KiwiSaver: Ensure that any contributions made to your own KiwiSaver (or for employees) are accurate and up to date.

If you are unsure about any deductions or obligations, don’t hesitate to ask us for guidance. The earlier you ask, the better.

5. Check for Any Pending Tax Credits or Losses

If your business has experienced a loss in a previous year, you may be able to carry forward those losses to offset your current year's income. This can significantly reduce your taxable income, so it's important to check with us whether you're eligible.

Additionally, review any tax credits you can apply for, such as the Research and Development (R&D) Tax Incentive if applicable to your business.

6. Get Your Tax Payments Organized

If you’ve received a provisional tax bill or are due for a final tax payment, make sure you’ve budgeted accordingly. You can pay your tax in instalments throughout the year, but it’s essential to set aside the funds so you aren’t hit with a large sum when filing your tax return.

If you're uncertain about your payment amount, we can help you calculate your liability and advise on payment options. Once calculated we will notify you as payments fall due and also advise on payment options timings mean funds are not readily available.

7. Communicate with GCOL Early

Don’t leave everything to the last minute. Contact us well in advance and set up a meeting or provide us with your financial records. This allows us time to review your records, make any necessary adjustments, and advise you on anything you might have missed.

By keeping open lines of communication, you ensure that your tax filing is accurate and timely.

8. Consider Tax Planning for the Next Financial Year

The end of the financial year isn’t just about wrapping up last year—it’s also a great opportunity to plan for the future. Meet with Tony to discuss ways to minimize taxes for the upcoming year. This could include strategies like:

Structuring your business to maximize tax advantages
Making additional contributions to your KiwiSaver
Exploring potential tax credits or incentives
Adjusting your provisional tax payments based on predicted income

9. Set Up Good Systems for Next Year

One of the best things you can do is to set up systems to track your finances more easily for the next financial year. Implementing accounting software or a simple filing system for your receipts and invoices will save you time and effort when EOFY rolls around again. It also helps keep everything organised, which is a huge relief for both you and us.

10. Don’t Forget About Personal Finances

For individuals, the EOFY isn’t just about business income. It’s also a time to review personal finances and ensure you’re making the most of any available tax deductions. This could include:

Charitable donations
Student loan repayments
KiwiSaver contributions (if you haven’t maxed out your annual contributions)

Keep an eye on the KiwiSaver limits and consider contributing more if you haven’t hit the annual maximum. Every little bit helps when it comes to saving for retirement.

Preparing for the end of the financial year in New Zealand may feel like a daunting task, but with the right steps in place, you can make the process much smoother. By organizing your financial records, reviewing your expenses, and proactively communicating with your accountant, you’ll ensure a hassle-free EOFY. Plus, a little preparation goes a long way toward minimizing your tax liability and setting yourself up for success in the year ahead.

As always, if you’re unsure about anything, don’t hesitate to reach out to the team at GCOL—we are here to help guide you through the process and make your tax filing as easy as possible.

Happy EOFY!

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Sunshine, Good Food & a Smooth End to the Year 🎅

By Gina Gambitsis • November 30, 2025

As we head into Christmas, the team at GCOL Chartered Accountants wants to wish you all a relaxing break filled with sunshine, good company, and hopefully a moment or two where your inbox is blissfully silent

Summer, Sunshine and Still on top of things

By Gina Gambitsis • November 20, 2025

A Light-hearted guide to balancing Business and a Break

What Can Your Business Claim ...

By Gina Gambitsis • November 20, 2025

Navigating the ins and outs of business expenses and tax deductions can feel overwhelming for many New Zealand business owners. However, understanding what expenses you can claim can significantly reduce your taxable income, ensuring you don’t pay more tax than necessary. Fortunately, the New Zealand tax system is clear about which business expenses are deductible, and with the help of professionals like GCOL Chartered Accountants, you can make sure you’re maximizing your claims. What Are Business Expenses in New Zealand? In simple terms, business expenses are the costs incurred in the day-to-day running of your business. These expenses are essential to generating your business income and are therefore deductible, meaning you can subtract them from your revenue to determine your taxable income. The New Zealand Inland Revenue (IR) Department has guidelines to help business owners understand what expenses are claimable. Here's a breakdown of the most common claimable business expenses: 1. Operating Expenses These are the costs involved in keeping your business running. Examples include: Rent and Utilities : The cost of renting office space or premises, as well as utilities like electricity and water, are claimable. Insurance : Premiums for business insurance (e.g., property, liability, and vehicle insurance) are deductible. Advertising and Marketing : Costs associated with promoting your business, such as online ads, print advertising, and marketing campaigns, can be claimed. Office Supplies : Items such as paper, pens, computers, and other office-related expenses are eligible for deduction. Bank Fees and Interest : Fees for business accounts and interest on business loans are deductible. 2. Vehicle and Travel Expenses If you use your vehicle for business purposes, you can claim a portion of the vehicle expenses, which may include: Fuel, Repairs, and Maintenance : If your vehicle is used for business, you can claim the costs proportionate to business use. Travel Expenses : Airfares, accommodation, and meals while traveling for business purposes are deductible. Remember, personal use of the vehicle or travel expenses cannot be claimed. You will need to apportion these costs based on business use. 3. Employee and Contractor Costs If you have employees or contractors, the following are claimable expenses: Salaries and Wages : Payments to employees, including bonuses, holiday pay, and KiwiSaver contributions, are deductible. Contractor Fees : If you hire independent contractors, their fees are also claimable. Training and Development : Costs associated with training and developing your team are deductible, so long as they are relevant to your business. 4. Depreciation Some business assets, such as equipment, vehicles, or buildings, lose value over time. Instead of claiming the full cost in one go, you can claim depreciation on these assets. The IRD provides depreciation rates for various asset types. 5. Professional Services If you hire professionals to assist with your business, their fees are claimable, including: Accountant and Legal Fees : Fees for financial advice, tax preparation, or legal assistance related to business activities can be deducted. Consulting Fees : If you engage business consultants for services such as market research or business planning, these expenses are also claimable. 6. Home Office Expenses Many small business owners or sole traders work from home. If this applies to you, you can claim a portion of your home-related expenses, such as: Mortgage Interest or Rent : If you work from home, you can claim a percentage of your mortgage interest or rent based on the portion of your home used for business. Electricity and Internet : You can also claim a portion of your electricity, phone, and internet costs based on the percentage of time you use them for business. How GCOL Chartered Accountants Can Help While the list of claimable business expenses might seem straightforward, many business owners find the nuances of the tax system difficult to navigate. That's where GCOL Chartered Accountants comes in. Our team of experts is here to help you maximize your tax deductions while staying compliant with the IRD’s guidelines. Here’s how we can assist you: Maximizing Deductions : We’ll ensure you claim every allowable business expense to minimize your tax burden. Tax Planning : Our team can help with strategic tax planning, offering advice on how to structure your expenses and income to maximize tax efficiency. Accurate Record-Keeping : We help you maintain accurate and organized financial records, making it easier to file your returns and defend your claims if needed. Depreciation and Asset Management : We provide advice on depreciating assets properly to ensure you're getting the maximum allowable claim over time. Compliance with IRD : Our team stays up to date with the latest tax regulations and ensures your claims are compliant with New Zealand tax laws, so you can avoid penalties or audits. Get In Touch with GCOL Chartered Accountants Today Managing business expenses and understanding tax deductions can be complicated, but with GCOL Chartered Accountants on your side, you can rest assured that your business is in good hands. Whether you're just starting out or you've been in business for years, we offer expert guidance tailored to your specific needs. Contact us today to learn more about how we can help you optimize your tax situation and ensure your business’s financial success. Let us take the guesswork out of managing your business expenses so you can focus on growing your business! By staying informed and seeking professional advice, you can make the most of your claimable business expenses under the New Zealand tax system. Let GCOL Chartered Accountants help you navigate the complexities of tax deductions with ease.