2026 EOY Tax Tips and Annual Checklist

As we approach the end of another financial year, it's a good opportunity to take stock and prepare for the year ahead.

To help make the transition into the new financial year as smooth as possible, we’ve put together some key end-of-year tax tips along with our annual checklist and authorisation form. This will help ensure we have everything needed to prepare your financial statements and tax returns efficiently.

We’ve also shared a brief insight into changing views on property investment, along with some things to consider when reflecting on the past year and planning for the next.

END OF YEAR TAX TIPS

Debtors/Bad Debts

Review your debtors and determine if any are unlikely to be recovered and should be written off. For unrecoverable income to not be taxable, it must be physically written off your ledger prior to 31 March 2026.

Log Book / Vehicle Expenses

If you use a personal vehicle for business purposes, ensure you are keeping a logbook or record of your vehicle expenses. If you drive an E.V, a portion of your power costs may also be claimable. Please include these details when compiling your year-end information, or get in touch to discuss this further if you have any questions.

Fixed Assets

Do you have any assets that are no longer in use or are surplus to requirements? Now is a good time to review your fixed asset schedule, and write off or sell your obsolete assets. Please contact us if you would like a copy of your asset schedule.

Investment Boost

You may be eligible for a 20% deduction on new (or new to NZ) business assets purchased on or after 22 May 2025. If you have purchased assets during the year, please ensure you provide the asset details  & invoices.

Stock Take

As a reminder, if you hold stock of more than $10,000, a stock take will be required at 31 March 2026. When completing the stock take please provide us with the GST exclusive figure. 

Pre-pay expenses

Think about any upcoming business expenses you may have, such as a re-stock of office supplies or new equipment. Depending on their value, if purchased prior to 31 March we can claim these costs now to help minimise your tax bill.  

Home Office

If you work from home, a portion of your household expenses can be claimed as a business expense. If this is the case for you, please complete our annual home office template and include it with your EOY information.

Donations

If you are planning to make charitable donations, consider doing so before 31 March. This allows us to claim a tax deduction of 33% of your total donations. Please remember to keep your receipts.

ANNUAL CHECKLIST AND AUTHORISATION

Please click here for a checklist to assist you in assembling the records and documents necessary for the preparation of a full and correct set of Financial Statements, Taxation, Statistical and Statutory Returns for the year ending 31 March 2026.

Once you have completed the checklist for each entity, please insert your entity’s name where indicated, assemble the necessary records and documents, then either contact us or forward them to our office. 

Due to the Privacy Act we are required to have written authority to access your information each year. Please read the authorisation section, insert your entities’ names and IRD numbers, sign where indicated, and return with the above information.

ECONOMIC UPDATE: CHANGING VIEWS ON PROPERTY INVESTMENT

Property has long been viewed as one of the primary pathways to wealth creation in New Zealand. However, we are beginning to see a shift in how the next generation views property investment.

During the Covid period, we experienced an unprecedented housing boom driven by low interest rates, strong demand and limited housing supply. Property values rose rapidly through 2020-2022, reaching its peak in early 2022. Since then, the market has corrected, with values easing before stabilising more recently, as shown in the graph above.

At the same time, investing in other areas has become far more accessible. Platforms such as Sharesies have made it easier for people to enter the share market, and many younger investors have also seen strong long-term growth in their KiwiSaver funds. As a result, some are beginning to question whether property is the only investment option.

Will this change in thinking alter the way the housing cycle works in New Zealand? After all, prices are driven by supply and demand. One key factor that sets property apart, however, is the ability to leverage. Investors can purchase property using borrowed funds, meaning any increase in value applies to the full property price, rather than just the cash invested.

Time will tell how this shift in thinking plays out, but what we are hearing from economists is that the significant gains seen in previous cycles may not be repeated to the same extent in the future.

REFLECTING ON THE YEAR AND LOOKING AHEAD

The end of the financial year isn’t just about compliance. It’s a useful opportunity to review how your business is performing and make small improvements for the year ahead.

Many business owners spend most of their time working in their business, managing day-to-day operations, staff and customers. The end of the financial year can be a great chance to step back and take some time working on your business.

Questions worth asking

• What worked well over the past year?

• Where did the biggest challenges arise?

• Are my pricing and margins still appropriate?

• Are there systems or processes that could make the business run more efficiently?

Alongside these broader reflections, having a clear understanding of a few key numbers can make decision-making much easier throughout the year.

Three numbers worth keeping an eye on

1. Cashflow Understanding what cash is coming in and going out of the business helps ensure essential payments and opportunities can be taken up when they arise.

   
   

2. Gross Margin This measures the difference between your sales and the direct costs of delivering your goods or services. Monitoring this helps ensure pricing remains appropriate as costs change.

   
   

3. Debtors (money owed to you) Keeping track of how long invoices remain unpaid can have a significant impact on cashflow. Prompt invoicing and regular follow-ups can help reduce delays in receiving payment.

Often small improvements, whether that’s tightening processes, reviewing your pricing or improving cashflow visibility, can make a meaningful difference over time. Taking the time to reflect now can help position your business for a stronger and more sustainable year ahead.

If you have questions regarding any of the areas covered above, or if you'd like a hand in getting ready for the new financial year, please feel free to get in touch. We'd love to help.