Getting ready for the End of Financial Year (EOY) might not be the most exciting part of running a business, but it’s essential.

Being prepared ensures your financial records are accurate and your income tax return reflects how your year has gone. Plus, it makes life much easier for you and your McIntyre Dick accountant.

For most New Zealand businesses, the financial year runs from 1 April to 31 March. To meet Inland Revenue requirements, you’ll need to file an income tax return to determine how much tax you owe. Preparing throughout the year saves time, reduces stress and sets you up for a smooth EOY process.

How to Make EOY a Breeze

Staying organised throughout the year is key. Keeping your records in order not only helps you stay on top of your finances but also makes the EOY process straightforward for you and your accountant.

Before we kick into how to best maintain your records, here's a reminder that our clients complete a tailored checklist based on their individual situations at EOY. You can find the options below:

Annual Financial Statements & Tax Returns Checklists

We also supply our clients with a 'Green Folder' if their preference is to provide us with paper records. In the front of the Green Folder, you will find a list of instructions of what to put in during the year.

Here are some important records you’ll want to maintain to be able to provide to us whether they are electronic or paper based:

Financial Records to Keep on Hand

• Bank Statements and Reconciliations
• Make sure you’ve noted your closing bank balances at balance date.
• Reconcile all bank transactions by this date.
• If you’re not using live bank feeds in Xero, hold onto bank statements for all business accounts for the full financial year.

Loan and Finance Information

• Keep details of any new loans, hire-purchases, or investments during the year.
• Note if business funds or assets were used for personal purposes.
• Record the balance of any loans at the end of the financial year.

Credit Card Records

• Reconcile business credit cards in Xero, or have statements ready.
• If you’ve used a personal credit card for business expenses, highlight those transactions so they’re easy to spot.

Receipts and Invoices

• Regularly upload receipts and invoices to Xero. This keeps things organized and helps us prepare your accounts faster.
• Hang on to key invoices, such as those for large purchases over $1,000, legal fees and insurance.

Accounts Receivable (Owed to you)

• Check these are all owing at balance date. If you’re using Xero, this data is typically already there.

Payroll Records

• Ensure your payroll system is up to date and accurate.

Transactions to be Verified

• Take note of any transactions you weren’t sure how to handle during the year, including any related invoices.

Cash Records

• Keep a record of petty cash receipts and the balance at year-end.

Stock Valuations

• Complete a stocktake by balance date to ensure your stock records are current.

Vehicle Records

• If needed, log mileage and keep vehicle-related records throughout the year.

Other Records You Might Need

Superannuation Contributions

• Record any private superannuation payments received.

Additional Income

• Keep track of extra income from dividends, interest, rental properties (including management fees and mortgage interest), or overseas sources.
• While New Zealand doesn’t have a Capital Gains Tax, some transactions, like selling certain shares or property, might be taxable.

Check your provisional tax due dates here.

Preparing for EOY might seem like a daunting task, but with the right steps and support, it can be a smooth and stress-free process. Staying organised throughout the year, maintaining accurate records and completing your tailored checklist will set you up for success. At McIntyre Dick, we’re here to make this time of year as easy as possible for you.

If you have any questions or need guidance, don’t hesitate to reach out. Whether it’s reconciling transactions, clarifying records, or navigating your checklist, our team is ready to help. Let’s work together to wrap up your financial year with confidence and start the next one on the right foot. Get in touch with us today to ensure you’re fully prepared for EOY!