Do’s and don’ts for the end of financial year

From the mammoth task of gathering up a year’s worth of records, to filing the company tax return, the end of the financial year (EOFY) is a busy period for Kiwi business owners.

To help you get a head start, we’ve collected our top do’s and don’ts for tax time, so you won’t miss a thing.

The ‘Do’s’

Do… check the latest legislative changes

It’s crucial for anyone with employees to stay across all the latest updates to NZ employment law, especially at the end of financial year. Missing an update to leave entitlements or the minimum wage, for example, can cause serious compliance headaches.

Many previously announced changes tend to come into force at the start of the new tax year, too, so it’s crucial to make sure your pay and leave entitlements are correctly set up before then.

Psst: We publish a comprehensive summary of NZ employment updates every quarter. Check out the latest issue.

Do… ensure your records are easy to access

When it comes to submitting a tax return at the end of the financial year, there can be a lot involved even before you’re in a position to submit your tax return.

It can take some time to sift through last year’s documents and data, let alone to calculate your taxes. The process can take extra time if your records are disorganised, hard to find, incomplete or worse…non-existent.

Whether you’re a business of two or a team of 100, take some time to hunt down all your relevant records and keep them in a safe, reliable place in the lead up to the end of financial year. Make sure the relevant people know where they are and how to access them, so there aren’t any surprises or delays when it comes to crunch time.

Did you know? Our payroll software acts as a home for all your crucial data. No more searching, just generate the reports you need and download them in a few clicks. Check it out.

Do… review your payroll processes and systems

If every payday filing day arrives in a flurry of admin and paperwork, it might be time to consider streamlining your processes.

The end of financial year is a great time to do a thorough audit of your payroll processes and systems. Do you need a better way to record payroll information? More time for each pay run? A better way to track leave balances?

Software like Employment Hero Payroll can automate IRD reporting with every pay run, while simultaneously storing records in a safe, searchable place for when you need it later.

Do… use this time as a chance to plan ahead

Much as the end of the traditional calendar year brings with it new resolutions, the end of financial year can be a good time to assess your business.

Is there anything you could do now to strengthen your financial performance in the next tax year? Now is a great opportunity to consider new investments and initiatives, from innovative performance review structures to improved feedback loops.

The ‘Don’t’s’

Don’t… leave it to the last minute

If you’re a serial procrastinator, this one might hit a little too close to home.

The end of financial year can be complicated and time consuming – so don’t underestimate how much time you have. The sooner you can get started, the better off you’ll be.

Factor in enough time for any potential delays, and don’t leave it until the last minute to submit your return. The penalty for filing late can be up to $500 NZD.

For most businesses in the 2024-2025 tax year, income tax returns must be completed and submitted to IRD before 8 July 2025. That gives you just over three months from the end of the tax year to the tax return deadline to get everything in.

Don’t… just copy last year’s figures

As much as it may be tempting to assume your business hasn’t changed much from last year, using previous figures without thoroughly checking them can be risky. There’s always some variation, so make sure you treat this end of financial year as a fresh new tax return.

Don’t… submit without double checking your calculations

We get it – you’re on your third coffee of the afternoon and you really, really want to get this tax return sent off after a couple of days’ work.

However, making a mistake on your submission to IRD can take far more time to remedy. It’s possible, but it’s frustrating and requires more work than a simple double check would. Make sure to take time to go back over the figures and ensure that everything is accurate.

Do…make tax time easy with Employment Hero

Our payroll software is built to help make employment easier – both at the end of the financial year and beyond. Get payroll right every time, from factoring in public holiday pay, leave deductions, complicated wage variations and everything in between. And that’s not all we can help with.

Our Employment Operating System incorporates more than just payroll software – it’s an all-in-one HR, payroll and benefits platform that makes record-keeping, reporting and workforce management easy at EOFY and beyond. Learn more about how we can help you at tax time by speaking with one of our business specialists today.

Looking for more support? Check out our free EOFY payroll and HR checklist.

Disclaimer: The information in this article is current as at 18 February 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.