Lessons for NZ Small Businesses Post-31 March.
The 2025 End of Financial Year (EOFY) has come and gone, but for many small business owners across New Zealand, the real work is just beginning — reviewing financials, filing returns and planning better for the year ahead.
If you found EOFY stressful or rushed this year, you’re not alone. Here are some of the most common EOFY mistakes small Kiwi businesses make and how you can avoid them moving forward.
1. Leaving EOFY Prep Too Late
If March felt like a scramble to find receipts, reconcile accounts or meet last-minute deadlines, it’s a sign your record keeping might need some structure.
How to improve:
Put systems in place now to avoid the same crunch next year. Regular monthly bookkeeping, using tools like Xero or MYOB, and scheduling a pre-EOFY check-in with your accountant early in the year (February or earlier) can save major headaches.
2. Incomplete Bank Reconciliations or Expense Records
Unreconciled accounts and undocumented expenses delay the filing process and can lead to over or underpaying tax.
What to do now:
Double-check your bank and credit card reconciliations for the year ended 31 March. Ensure all business expenses are coded correctly. Going forward, set a recurring task to reconcile monthly and store digital receipts in one place.
3. Blurring Business and Personal Spending
Many sole traders and small business owners still mix personal and business expenses – unintentionally reducing clarity and increasing the chance of IRD scrutiny.
Fix this going forward:
Open a dedicated business bank account and use it consistently. If you’ve already filed your return and noticed crossover expenses, talk to your accountant about how they were handled and improve the setup this year.
4. Missing Legitimate Deductions
Have you claimed for home office use, mileage, software subscriptions or asset depreciation? Many businesses miss out on deductions that could lower their tax bill.
Now’s the time to:
Review your submitted tax return (if filed) or raise these with your accountant if you're still finalising. Start tracking things like home office expenses or vehicle usage now. It’s much harder to backdate these accurately later.
5. Overlooking Provisional Tax Obligations
With income growth often comes provisional tax obligations. Missing these payments triggers IRD penalties and interest.
What to do:
If your income increased in FY2025, now is the time to check whether you’ll be required to pay provisional tax for 2026. Mark upcoming instalment dates (28 August, 15 January, 7 May) and speak to your advisor about budgeting for these payments.
Final Thoughts: EOFY is a Learning Opportunity
The end of the financial year is more than a compliance deadline. It’s a chance to assess how well your systems are working and plan for smarter tax management in the year ahead.
Need a post-EOFY review?
Whether you're finalising your return or looking to get ahead in FY2025, we’re here to help. Contact us today for a personalised business review and practical advice for the year ahead.
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this article; always see your professional advisor before taking any action that you are unsure about.
JOHNSTON ASSOCIATES, Level 1, One Jervois Road, Ponsonby, T: 09 361 6701, www.johnstonassociates.co.nz
