Critical Year-End Checks Before 31 March
- Apex Accountancy
- Mar 17
- 2 min read
As we approach 31 March, we want to ensure we are guiding you through the critical year-end checks your business should complete before balance date. For most New Zealand businesses, 31 March is the standard balance date, so this is the time to ensure your income, expenses, tax, payroll, and records are accurate.
Please review the following areas where relevant to your business:
Financial & Transactional Accuracy
Reconcile all bank accounts and credit cards: Ensure all transactions are coded correctly and there are no missing transfers, duplicates, or unexplained balances. If your bookkeeping is incorrect, your year-end accounts and tax returns will also be incorrect.
Review accounts receivable: Check your outstanding debtors and follow up on overdue balances. Clean up old receivables and consider whether any bad debts should be written off before year-end.
Review accounts payable: Confirm that supplier invoices, contractor costs, and other expenses relating to the current year are recorded in the correct period. This is especially important if you use the invoice basis for GST.
Check GST coding and reserves: Review whether GST has been coded correctly and confirm that you have set aside funds for your next GST payment.
Payroll & Internal Accounts
Review PAYE, wages, and contractor payments: Ensure wages, PAYE, KiwiSaver, ESCT, and schedular payments have been processed correctly and that your payroll records are complete. Check the schedular taxes.
Review shareholder drawings and current accounts: Check for overdrawn shareholder current accounts and personal spending through the business, as these often create tax issues if left unresolved.
Assets & Operations
Review stock, work in progress, and job profitability: Where applicable, confirm your stock on hand, incomplete jobs, and margins to ensure your business is generating real profit.
Review fixed assets and equipment purchases: Confirm that asset purchases are recorded properly and identify any items that should be capitalised rather than expensed.
Review loans and finance arrangements: Confirm loan balances, interest charged, repayments, and whether business and personal borrowings have been mixed.
Tax & Compliance
Check for FBT exposure: Motor vehicles and other benefits provided to employees or shareholder-employees may trigger Fringe Benefit Tax, so these should be reviewed.
Estimate income tax and provisional tax exposure: Review your expected profit and estimate tax early so you understand your upcoming obligations.
Confirm record keeping is complete: Ensure your invoices, receipts, agreements, payroll records, and loan documents are organised and accessible.
Review whether your current business structure is still appropriate: Your status as a sole trader, company, or trust, and your GST registration, should still align with how your business operates.
