NZ end-of-financial-year checklist 2026 — what to do before 31 March

Most NZ businesses have a 31 March balance date. The actions you take in the last quarter of the year — before the books close — materially affect your taxable income and your year-end tax bill. This checklist walks through every step, with the IRD source for each.

1. Stocktake — count what's on the shelves

If you carry trading stock, you must take a physical count at year-end and value it at the lower of cost or market selling value. The closing stock figure feeds directly into your taxable income, so accuracy matters. Slow-moving or obsolete stock can be written down to net realisable value.

Source: IRD — trading stock.

2. Low-value asset write-offs — anything under $1,000

Assets costing $1,000 or less (GST exclusive) can be fully expensed in the year of purchase rather than depreciated. Buying that printer, monitor, or piece of tooling before 31 March means a full deduction in the current year. Buying it on 1 April means depreciating it over years.

Source: IRD — low-value asset write-off.

3. Depreciation roll-up

Run your depreciation schedule for the year. Each asset class has its own rate set by IRD Determination DEP1. Common categories: computer hardware, computer software, motor vehicles, office furniture, plant and equipment. Check whether any asset has been scrapped or sold during the year (gives rise to a depreciation recovery or loss).

Source: IRD — general depreciation rates (DEP1).

4. Bad debts — write off the genuinely uncollectable

To claim a bad-debt deduction you must:

• Have previously included the income in your tax return,
• Have taken reasonable steps to recover the debt, and
• Write the debt off in your books before 31 March.

The write-off must be a formal accounting entry — making the decision is not enough. If you wait until April to write it off, the deduction lands in next year's return.

Source: IRD — bad debts.

5. Prepayments — what you can claim now

Some prepaid expenses can be claimed in the year you pay them rather than spread over the period they cover. The rules differ by expense type (insurance, rates, subscriptions, rent). Material prepayments above thresholds set in IRD's Determination are usually time-apportioned across the period.

6. Asset purchase timing

Capital purchases (above the $1,000 LVA threshold) start depreciating from the month the asset is first available for use, not the date you paid for it. Bringing the purchase date forward to before 31 March means an extra month of depreciation in the current year — the dollar value depends on the asset's IRD Determination DEP1 category and the DV / SL rate applied.

Source: IRD — general depreciation rates (Determination DEP1).

7. Bonus / dividend / salary planning (companies)

If you operate through a company, the decisions about director shareholder salary, dividend declarations and bonus accruals all affect both the company's taxable income and your personal tax position. The bonus must be a binding obligation by 31 March and paid within 63 days of year-end to be deductible in the current year. Dividend declarations have separate timing rules under the Companies Act and imputation credit rules.

8. Final GST reconciliation

Reconcile your GST control account to the last GST return for the year. Any difference between the GST account balance and the return often reveals: unaccrued GST on year-end invoices, GST on barter or non-cash transactions, or GST mis-categorised on zero-rated supplies. Identifying and correcting these now beats discovering them during an IRD review.

9. Payroll close-out

Your last PAYE filing for the year should reconcile to the year's total wages. Confirm:

• All payday filings have been submitted
• KiwiSaver employer contributions match the schedule
• ESCT has been calculated on the correct rate for each employee
• FBT has been declared for any non-cash benefits (motor vehicles, low-interest loans, entertainment over the de minimis)

10. Provisional tax check

If you're a provisional taxpayer, the P3 instalment for the 2026 income year was due 7 May 2026. Check whether the standard-method amount you paid will leave you with a UOMI or refund position at year-end. If your income has dropped sharply, consider switching to estimation for the 2027 year. See our provisional tax explainer and the UOMI calculator.

11. Records — pull everything together

The Tax Administration Act 1994 requires you to keep records for seven years (s.22 — see legislation.govt.nz). Essential year-end records:

• Bank statements for every account (business + personal accounts used for business)
• Invoices received (receipts for any expense over $50)
• Invoices issued (debtor ledger)
• Vehicle logbooks (if claiming actual costs)
• Stocktake records and methodology notes
• Asset register with purchase dates and disposal records
• Employment records (employment agreements, payslips, KiwiSaver elections)
• Contracts and major agreements

Source: Tax Administration Act 1994, s.22.

12. Book the accountant call

April is your accountant's busiest month. The earlier you can supply year-end information, the earlier your IR3 or IR4 gets prepared. Tax-agent-linked clients have until 31 March of the following year to file under the extended-due-date arrangement, but doing it in April means you know your tax position for the year and can plan terminal-tax cash flow.

Related on TaxAccountants.co.nz

• NZ tax deadlines 2026 — IR3, IR4, GST, provisional tax dates.
• Small business tax deductions — what you can claim, sourced from IRD.
• Provisional tax 2026 — standard / estimation / AIM methods.
• NZ tax calculator — work out the year-end RIT.
• UOMI calculator — estimate interest on a shortfall.