As the financial year draws to a close, it’s crucial for every New Zealand business to get its accounts in order. The end of the financial year (EOFY) isn’t just about filing tax returns — it’s a golden opportunity to review your financial health, optimise your tax position, and set your business up for success in the year ahead.

At Ace Accounting, we’ve helped hundreds of businesses across New Zealand simplify their year-end accounting process. Whether you’re a sole trader, small business, or company, our step-by-step checklist ensures you stay compliant with the Inland Revenue Department (IRD) and avoid costly last-minute errors.

Here’s your complete end-of-year accounting checklist to keep your finances clean, compliant, and ready for a smooth start to the new year.

Organise Your Financial Records

The foundation of any successful year-end process is well-organised financial data. Gather all your income statements, expense receipts, invoices, and bank statements. Ensure all transactions are recorded correctly in your accounting system.

Check for missing receipts or invoices and reconcile your accounts to ensure that your bank balance matches your records. This step not only saves time during tax filing but also gives you a clear picture of your cash flow.

Pro Tip: Use accounting software or hire experts like Ace Accounting to automate reconciliation and minimise human error.

Reconcile Bank Accounts and Credit Cards

Before closing your books, verify that every bank account, loan, and credit card transaction is reconciled. Compare your statements with your accounting records to ensure accuracy. Unreconciled transactions can lead to reporting discrepancies that affect your tax return and financial reports.

Review Accounts Receivable and Payable

Go through all outstanding invoices (money owed to you) and bills (money you owe to suppliers).

• For receivables: Send reminders to clients who haven’t paid yet and write off debts that are genuinely uncollectible.
• For payables: Pay any overdue bills to avoid interest or late fees.

Keeping your receivables and payables up-to-date ensures your balance sheet reflects an accurate financial position.

Conduct a Stocktake (If Applicable)

If your business sells physical products, you must conduct a stocktake at the end of the financial year. This involves counting your inventory and recording its current value.

The IRD requires accurate inventory valuation for tax purposes. Be sure to note damaged, obsolete, or unsellable stock items — these can often be written off to reduce taxable income.

Review Fixed Assets and Depreciation

Your fixed assets — such as vehicles, machinery, and office equipment — depreciate over time. Review your asset register and ensure all purchases and disposals during the year are recorded.

Calculate depreciation correctly for tax deductions and remove any obsolete or sold assets from your list. Ace Accounting can help you determine the appropriate depreciation method to comply with IRD standards while maximising deductions.

Verify Payroll and Staff Expenses

If you employ staff, ensure all wages, bonuses, leave payments, and deductions (like PAYE and KiwiSaver) are correctly recorded.

Double-check that all payroll-related taxes have been filed and paid to the IRD on time. Keep records of any reimbursements or fringe benefits provided to employees, as these may have additional tax implications.

Pro Tip: Schedule a payroll audit before EOFY to confirm compliance with employment and tax laws.

Prepare and Review Financial Statements

Your financial statements — Profit & Loss, Balance Sheet, and Cash Flow Statement — give a snapshot of your business performance.

• Profit & Loss Statement: Summarises income and expenses to show net profit.
• Balance Sheet: Displays assets, liabilities, and equity.
• Cash Flow Statement: Highlights how money moves in and out of your business.

Review these reports to assess performance trends, identify areas for improvement, and prepare for tax filing. Ace Accounting helps businesses interpret financial data to make informed, strategic decisions.

Claim All Eligible Deductions

Many New Zealand businesses miss out on valuable deductions simply because they’re unaware of what’s claimable. Ensure you claim:

• Office rent and utilities
• Business travel and vehicle expenses
• Professional services (like accounting or legal fees)
• Software subscriptions
• Depreciation on business assets

Ace Accounting can help you identify every deduction you’re entitled to — ensuring you only pay what’s necessary and nothing more.

Check Your GST Returns

If your business is GST-registered, ensure all returns for the year are filed correctly. Review all input and output tax claims for accuracy.

Double-check that GST is applied correctly on invoices and receipts — errors in GST reporting can trigger IRD penalties or audits.

Plan for the Next Financial Year

Once you’ve finalised your current year’s accounts, it’s time to plan ahead. Review your cash flow forecasts, budgets, and upcoming investments.

Ask questions like:

• How did my business perform financially this year?
• Can I improve cash flow management next year?
• Should I adjust my pricing, spending, or growth strategy?

Working with Ace Accounting helps you build a proactive plan for tax efficiency, financial health, and business growth.

Bonus Tip: Consult a Professional Accountant

EOFY can be time-consuming and complex, especially for businesses juggling multiple revenue streams. Partnering with a trusted accounting firm like Ace Accounting ensures your year-end tasks are completed accurately, efficiently, and on time.

We handle everything from reconciliations and financial reporting to tax filings and planning, so you can focus on running your business confidently.

Final Thoughts

Preparing for the end of the financial year is more than just ticking boxes — it’s about strengthening your business foundation. A well-executed EOFY checklist ensures compliance, maximises tax benefits, and positions your company for a successful year ahead.

At Ace Accounting, we’re dedicated to helping New Zealand businesses streamline their year-end accounting, save money, and stay compliant. With our expert support, you can step into the new financial year with clarity, confidence, and control.