As the summer sun begins to dip a little lower in the sky and the kids settle back into school, those of us running small businesses in New Zealand start to feel that familiar “March 31st” energy. It’s a bit like a New Year’s resolution for your professional life—a time to clear the decks, reflect on the wins, and perhaps tidy up those piles of receipts that seemed so manageable back in July.
While the end of the financial year (EOFY) can sometimes feel like a daunting mountain of paperwork, it doesn’t have to be a stressful climb. Think of it more as an annual “well-being check” for your business. With a few thoughtful steps and some strategic planning, you can walk into April feeling organised, relaxed, and perhaps even with a tax refund on the horizon.
Here is a supportive roadmap to help you navigate the next few weeks with confidence.
- Getting the foundation right
Before we get into the fun stuff like asset incentives, it’s usually a great idea to make sure your day-to-day data is feeling loved. If you’ve been using Xero or similar cloud-based software, you’re already halfway there.
It might be helpful to set aside a quiet afternoon—perhaps with a good coffee—to ensure all your bank feeds are fully reconciled. Checking that every transaction has a corresponding home helps ensure that when it comes time to file your tax return, you aren’t leaving any deductible expenses behind.
If you find a few transactions that have you scratching your head, don’t worry. It happens to the best of us. This is the perfect time to reach out to your accountant to help categorise those “mystery” items. They’ve seen it all before, and they’re usually more than happy to help you get things straight.
If you’re not using an application such as Xero for your accounting, then now is an ideal time to get set up. These platforms are continually evolving and have powerful analysis tools, using the latest technologies, to help you fully understand your business.
- A Final Polish for Your GS T
Since many businesses find their final GST period of the year aligns with the March 31st cut-off, it’s a wonderful opportunity to do a bit of “financial spring cleaning.”
It would be a good idea to double-check that you’ve claimed GST on all your valid business expenses. On the flip side, it’s also worth making sure you haven’t accidentally claimed GST on things like bank fees, interest, or residential rent, which are typically exempt. Taking a moment to get this right now can save you the minor headache of making adjustments later in the year.
- The 2025 Business Boost
One of the most exciting developments for New Zealand small businesses recently was the “20% Business Boost” policy, which came into effect on May 22, 2025. This change was designed specifically to help us invest in the tools we need to thrive.
If you are considering buying new equipment, technology, or machinery for your business, it’s worth noting how this new rule works. Essentially, the government now allows you to claim an immediate 20% of the cost of a new asset as an expense in the year you buy it.
How the 20% Boost works in practice:
Imagine you decide your team needs a new specialized piece of equipment costing $10,000 (excluding GST). Under the rules established in 2025:
* Immediate Expense: You can claim 20% ($2,000) as an immediate expense right away.
* The Remaining Balance: The remaining 80% ($8,000) is then treated as the “book value” of the asset.
* Standard Depreciation: You then claim your usual depreciation on that $8,000 balance based on the IRD’s standard rates.
This is a significant shift in financial planning. By opting for new assets rather than second-hand ones, you can essentially front-load your tax deductions. It’s a lovely way to reduce your taxable profit in the current year while upgrading your business’s capabilities. If you’ve been on the fence about a major purchase, talking to your accountant about how this 20% boost fits into your specific business strategy could be very beneficial.
- Navigating the Asset Thresholds
Beyond the 2025 Business Boost, it’s also helpful to keep the “Low-Value Asset” threshold in mind.
Currently, for items that cost $1,000 or less (excluding GST), you can generally claim the entire cost as an expense in the year of purchase. If you’ve been meaning to replace an old office chair, grab a new monitor, or update your toolkit, doing so before March 31st allows you to include that full cost in this year’s accounts.
It’s just one more way to ensure your tax return accurately reflects the investment you’re putting into your daily operations.
- Cleaning Out the “Financial Cupboards”
Just as we might declutter a pantry, the EOFY is a great time to declutter your balance sheet. There are two areas where a little bit of attention can go a long way:
Addressing Bad Debts:
It’s an unfortunate reality of business that sometimes an invoice goes unpaid. If you have debts that you’ve genuinely tried to collect but have realized are unlikely to ever be paid, it might be a good idea to formally “write them off” in your system before March 31. By doing this, you ensure you aren’t paying tax on income that never actually made it into your bank account.
The Annual Stocktake:
If you hold physical stock, performing a stocktake as close to March 31st as possible is usually the best approach. It’s a chance to identify anything that’s become damaged or obsolete. If you value your stock at the lower of “cost” or “market value,” writing down the value of that old stock can help ensure your profit figures are realistic and fair.
- The Value of Partnership
While modern software like Xero makes the numbers side of things much clearer, the human element is still incredibly important. Think of your accountant not just as someone who files forms, but as a partner in your financial planning.
A quick pre-EOFY meeting can be a great way to:
* Confirm you’re using the correct depreciation rates (including that new 20% boost!).
* Check if you’re eligible for any specific tax credits.
* Discuss your provisional tax for the coming year so there are no surprises.
* If you don’t have an advisor, please get in touch: Better Business and Tax
When your records are tidy and your strategy is sound, the process of filing your tax return becomes much smoother. And should you find that you’ve contributed a little too much tax over the year, your accountant will be the first to help you secure that welcome tax refund.
- Looking Forward
Once the “compliance” part of the year is tucked away, you have a beautiful blank canvas for the year ahead. This is the perfect moment to shift from looking backward to looking forward.
It would be a great idea to use the reports from the past year to set a few strategic goals for the next twelve months. Are there areas where you could reduce costs? Are there specific months where you’d like to see a bit more cash flow?
Planning for a better business future isn’t just about the numbers; it’s about creating a business that supports the life you want to lead. Whether that means investing in new technology to save time or refining your margins to increase your take-home pay, a little bit of planning now makes the rest of the year feel much more intentional.
In Conclusion
The lead-up to March 31st doesn’t need to be a time of high stress. By taking some small, manageable steps—reconciling your accounts, considering your asset purchases under the 2025 rules, and having a friendly chat with your advisor—you can turn the EOFY into a moment of clarity and empowerment.
You’ve worked hard all year. Taking these final steps is simply about making sure that your hard work is reflected accurately and that you’re keeping as much of your hard-earned money as possible to reinvest in your future.
(Disclaimer: This article provides general information only and does not constitute specific financial or tax advice. Tax laws change often. Always consult with a qualified New Zealand accountant or tax advisor regarding your specific business circumstances before making significant financial decisions.)
