Can you believe it's almost that time again? The end of the financial year is just around the corner and we wanted to share some handy tips to help you prepare and ensure a smooth transition into the new financial year.
Tips to Prepare Your Business for 2025 Filing:
End of Year Questionnaires: You should have received your End of Year Questionnaires around mid-February. If not, please let us know email Charlotte support@mytwocents.nz. Start working through these promptly, ensuring to attach and include as much information as possible, especially in the sections on 'other income' and 'significant changes'.
Schedule Your Stocktake: Aim to conduct your stocktake as close to 31 March as possible.
Reconcile Xero: Make sure your Xero accounts are reconciled up to date.
Enter Sales Invoices and Bills: Input all sales invoices and bills into your accounting system.
Request Loan Statements: Obtain loan statements from any finance providers.
Compile Home Office Running Costs: Gather details of utilities, rates, insurance, mortgage interest, and rent for your home office.
Manual Records: If you maintain manual records, compile and upload them into the annual questionnaire.
Early Questions: Please ask any questions, as early on in the process as you can.
Book an Annual Accounts Review: We will send through draft financials and tax returns for your review, we recommend booking in with your client manager to do an annual accounts review – this session will make sure you understand what is in the returns, make sure nothing has been missed, and provide you with your tax position and what payments are to be expected.
The earlier you submit your questionnaire the earlier we can get you filed.
Remember, we file on a first-come, first-served basis. The sooner you complete and submit your information, the sooner we can file your returns. We do hold limited spots for urgent returns, if you require an early return for any reason, please reach out to our team at support@mytwocents.nz. There is a fee for urgent filing – this is $180 + GST per return.
Getting Your Business Ready for the New Financial Year - 2026:
Looking ahead to the new financial year (2026, feels very strange saying that!), here are some steps to make sure you kick-start the year on the right foot:
Early Business Planning: Do you know where your business is headed and how you will get there? Schedule a business planning session early to help set the scene for your business, set SMART goals and identify crucial KPIs to drive your business forward.
Accountability Coaching: Who will hold you accountable to achieve goals and KPI’s? Accountability coaching is key to continued success. We help you keep that motivation going, achieve goals and stay on target.
Review Business Structure: Review your current business structure; is it working in your benefit or inhibiting growth. We're here to help you navigate this process and make any necessary changes.
Improve Record Keeping: Are you keeping manual records? Consider transitioning to accounting software like Xero for more efficient record keeping. If you prefer manual records, ensure they are kept up to date each month with bank statements, receipts, invoices, GST records etc. We recommend setting up a Google Drive or Dropbox and share it with us.
Motor Vehicle Expenses: Always a hot topic for IRD.
If your vehicle is used exclusively for business purposes, you can include it in your business expenses. However, you must confirm that you also have access to another vehicle for personal use.
For vehicles used for both business and personal purposes, you can claim up to 25% of the motor vehicle expenses without maintaining a logbook.
To claim more than 25%, you'll need to keep a logbook for a continuous period of three months. This logbook will remain valid for three years.
Payroll and Staffing: If you're bringing on staff in 2025, determine your payroll software needs and consider training options. Let us know if you’d like our help.
New in Business? If you're a new business owner, we highly recommend you schedule a session with our team to discuss your business plans, expectations and compliance requirements, and get started on the right track.
Our team is committed to empowering you as a business owner, saving you time, holding you accountable, and supporting you in creating a successful business.
If you have any questions or need assistance with any aspect of your financial affairs, don't hesitate to reach out. We're here to help!
