The end of the financial year can feel like a race to the finish line, but with the right preparation, you can breeze through tax time with confidence. Whether you’re fine-tuning your expense claims, wrapping up your accounts in Xero, or simply managing the stress that comes with it all, here are some tips to help you along.
Claiming business expenses: what you don’t want to miss
By now, you know that you can claim business expenses to reduce your taxable income. But are you maximising your deductions? Here are a few key things to check:
- Home office expenses – If you work from home or have a home office, make sure you’re claiming a portion of your household costs like internet, power, and rent.
- Vehicle and travel costs – If you use your vehicle for work, ensure you’re keeping accurate records of business-related travel.
- Subscriptions and memberships – Professional subscriptions and industry-related memberships are often deductible.
- Depreciation on assets – Larger purchases like laptops and machinery may need to be claimed over time rather than as a single expense.
- Rental property expenses – If you own rental properties, make sure you’re claiming deductible costs such as property management fees, maintenance, rates and insurance where applicable.
Make sure you have tax invoices to support your claims. The IRD can ask for these records up to seven years after filing.
For more details, check out Business.govt.nz’s guide on claiming expenses.
Wrapping up the year in Xero
Using Xero makes EOFY tasks a lot easier, but you still need to ensure everything is in order before handing things over to us. Here’s a quick checklist:
- Reconcile all transactions – Go through your bank feeds and ensure every transaction has been categorised correctly.
- Review unpaid invoices and bills – Chase any overdue payments and confirm what’s still outstanding.
- Check payroll – Make sure all wages, PAYE, and KiwiSaver contributions are recorded correctly.
- Run key financial reports – Profit and loss, balance sheet, and trial balance reports help you (and us) get a clear picture of your business finances.
For a step-by-step guide, watch Xero’s EOFY preparation video.
Managing stress at tax time
With good planning and clear processes, you can make tax time easier on yourself. Here are three key strategies:
- Don’t leave things to the last minute – Create a routine to update your financial records throughout the year. Set reminders and use a record-keeping system that works for you so everything is neatly documented when tax time comes around.
- Get everything in order – Spend some time finding out what you need to do for your business and create a year-end checklist. Key tasks include checking who owes you money, reviewing your business expenses, ensuring GST returns are up to date, and gathering all necessary tax documents.
- Reset for the new financial year – Take time to reflect on what’s working in your business and set realistic goals for the year ahead. Good financial habits throughout the year will make next year’s tax time even easier.
For practical stress management tips, visit Business.govt.nz’s guide on managing stress at tax time.
Closing EOFY with confidence
EOFY doesn’t have to be a stressful scramble. With a solid plan in place, you can get through it smoothly and set yourself up for success in the next financial year. Take advantage of your accounting software, stay on top of your records, and don’t be afraid to ask for help when you need it. Need a hand? Get in touch with us to make EOFY a breeze!
