The End of Financial Year (EOFY) can feel a little overwhelming, especially if numbers aren’t your thing. But with the right preparation, you can get everything sorted for your tax return without the last-minute panic.
At Conduit Business Solutions, we help small and medium-sized businesses across Northland and New Zealand make EOFY simple and stress-free. Getting organised now means more money in your pocket, more time to grow your business, and fewer headaches when it comes to filing with IRD. And to make things a little more fun, we’ve put together an EOFY Bingo Card! ✅ Tick off what you’ve already done and see how close you are to a full house—find it at the end of this blog!
Your Simple EOFY Preparation Checklist
1. Chase Up Any Outstanding Payments
Before the financial year wraps up, make sure you’re paid for the work you’ve done. If you have outstanding invoices, now’s the time to follow up.
Send a friendly reminder to any overdue customers.
Pick up the phone! A quick call can reveal that the invoice got lost, or it’s sitting in the wrong inbox.
Use automation tools like Xero or PaidNice to send polite reminders so you’re not chasing invoices manually.
Getting those payments in before EOFY helps boost your cash flow and tidy up your accounts.
2. Organise Your Financial Records
The more organised your records, the easier it is for your bookkeeper or accountant to prepare your tax return.
Go digital: Store important documents in cloud-based systems like Xero Files, Google Drive, or Dropbox.
Use tools like Hubdoc or Dext to scan and store receipts automatically—no more lost paperwork!
Categorise your transactions: Label expenses properly (e.g. rent, utilities, office supplies) so they’re easy to find.
Review everything monthly: Stay on top of your numbers so you’re not scrambling at the last minute.
Keep digital copies of key documents like tax returns, GST filings, and payroll reports for easy reference.
A little EOFY preparation now saves hours of frustration when it’s time to file your tax return.
3. Payroll Check: Stay on Top of Employee Wages & Tax Updates
The End of Financial Year (EOFY) is the perfect time to review your payroll systems, check compliance, and make sure everything is running smoothly for the new financial year. Getting it right now will save you headaches down the track and help you avoid costly mistakes.
Here’s what you need to check before 1 April 2025:
✅ Employee Wages, Tax Codes & Leave Balances
Make sure all employee wages, PAYE tax codes, and leave balances are up to date. Keeping accurate records is essential for compliance and helps with financial planning for the year ahead.
🚨 Upcoming Payroll Changes for the 2025/2026 Financial Year
From 1 April 2025, a few key updates are coming into effect. Make sure your payroll software is updated to reflect the latest changes, including:
ACC Earners' Levy Increase → Rising from $1.60 to $1.67 per $100 of liable earnings.
Maximum Liable Earnings Threshold → Increasing to $152,790 (previously $142,283). Earnings above this amount aren’t subject to ACC levies.
Minimum Wage Changes →
Adult minimum wage → $23.50 per hour (up from $23.15).
Starting-Out & Training Wage → $18.80 per hour (80% of the adult rate).
Student Loan Repayment Threshold → Remains at $24,128 per year ($464 per week).
Employer Superannuation Contribution Tax (ESCT) Updates →
$0 – $18,720 → 10.5%
$18,721 – $64,200 → 17.5%
$64,201 – $93,720 → 30%
$93,721 – $216,000 → 33%
$216,001 and above → 39%
Tax on Extra Pay (Bonuses & Termination Pay) is Changing →
From 1 April 2025, tax on extra pay will be based on the last two paid pay periods instead of the previous four weeks of earnings.
What to do now:
✔️ Communicate with Employees – Let them know how changes (like ACC levies and wage increases) will affect their pay.
✔️ Review Employment Agreements – Check that contracts comply with the new minimum wage rates.
💡 Managing Annual Leave at EOFY
Accrued annual leave is money owed to employees, so it's a financial liability for your business. At EOFY, it’s crucial to:
Calculate how much annual leave employees have accrued but haven’t taken.
Make sure records are accurate—payroll software makes this easier!
Encourage staff to take leave within 63 days after the financial year ends (by 2 June). This leave is counted as part of the previous financial year for accounting purposes. Adjusting for it can reduce the business’s overall annual leave liability, as the leave cost is recognised in the previous year instead of carrying over into the new one.
📜 Annual Earnings Summaries
In New Zealand, employers don’t have to provide an earnings summary (like a PAYE certificate), because employees can access their earnings through myIR. But many businesses still provide one as a courtesy, making it easier for employees and their accountants at tax time.
✔️ If you're using Xero Payroll, generating an Annual Earnings Certificate is quick and easy. While not required, it’s a great way to support your team with their Tax Return.
⏳ Thinking About Upgrading Your Payroll System?
Still managing payroll manually or using outdated software? EOFY is the perfect time to switch. A good payroll system helps you:
✔️ Stay compliant with NZ law
✔️ Automate tax & wage updates
✔️ Reduce admin time so you can focus on business growth
As Xero & payroll experts, we help small businesses set up payroll systems that save time, cut down errors, and keep things running smoothly.
📞 Need help getting payroll sorted for the new financial year? Let’s chat!
4. Get Ready for Tax Time
Maximise your deductions and save money on your tax return:
Check for deductible expenses:
Home office use
Business use of your personal vehicle
Business travel
Subscriptions or software paid personally but used for business
Set aside funds for your tax payments early so you’re not caught off guard.
Talk to your bookkeeper or accountant about extra deductions you might be eligible for.
5. Perform a Stocktake
If you hold inventory, a stocktake at EOFY ensures your financial records are accurate.
✅ Count your stock and match it to your records.
✅ Clear out slow-moving stock to improve cash flow.
✅ Write off unsellable items for possible tax deductions.
6. Maximise Your KiwiSaver Contributions
Boost your retirement savings before 30 June to take advantage of the government’s $521 contribution.
Contribute at least $1,043 to your KiwiSaver account before the deadline.
If you’re self-employed, consider setting up an automatic payment to make regular contributions easier.
7. Switch to Online Accounting Software
Still using spreadsheets or old-school accounting systems? EOFY is the perfect time to upgrade to Xero.
✅ Automate invoicing and payments to speed up cash flow.
✅ Track expenses in real time and keep your books tidy.
✅ Get instant financial insights with easy-to-read reports.
As Xero Certified Advisors, we can help you make the switch with zero stress.
8. Watch for Financial Warning Signs
EOFY is a great time to check your financial health. Look out for:
⚠️ Ongoing losses or reduced profit margins
⚠️ Late customer payments affecting cash flow
⚠️ Mounting debt or difficulty covering expenses
If cash flow is tight, act early. Work with a bookkeeper or accountant to review your numbers and create a plan.
9. Improve Your Cash Flow
A strong cash flow strategy helps keep your business running smoothly:
💰 Invoice quickly—don’t wait until month-end.
💰 Offer early payment discounts to encourage on-time payments.
💰 Make it easy to pay—accept bank transfers, credit cards, and online payment options.
💰 Negotiate better supplier terms to ease cash flow pressures.
💰 Follow up on overdue invoices quickly.
10. Use Simple, Clear Reports
EOFY is the perfect time to review your financial performance.
📊 Profit & Loss Report—Understand your earnings and spending.
📊 Cash Flow Statement—See where your money is going.
📊 Balance Sheet—Check the overall health of your business.
📊 Custom Xero Reports—Track the numbers that matter most to you.
Regular reporting keeps you informed and makes tax time a breeze!
Important EOFY Deadlines
7 July 2025 – Deadline to file your tax return (if you don’t have an accountant or tax agent).
7 April 2025 – Deadline to pay your 2024 tax bill (if you don’t have an accountant or tax agent).
Let’s Make EOFY Easy! EOFY doesn’t have to be stressful! With a little planning, you can stay ahead of deadlines, save money, and start the new financial year strong.
At Conduit Business Solutions, we’re here to make EOFY simple. Whether you need help getting your records in order, managing payroll, or switching to better accounting software, we’ve got your back.
📞 Book a free consultation today—let’s make EOFY easy together!
EOFY Bingo!
To make it a little more fun, we’ve put together an EOFY Bingo Card! ✅ Cross off what you’ve already done and see how close you are to a full house. (Check out the bingo card below and share your progress with us!)
