New Zealand’s EOFY: The Ultimate Guide for Trade Industries

When is the EOFY in New Zealand?

For Aotearoa, New Zealand, the financial year begins on 1 April and ends on the following 31 March. This is called the standard balance date and is set by the Inland Revenue Department (IRD).

Tip: EOFY dates are different around the world. Learn about Australia’s EOFY dates.

It’s good to know if the balance date falls within your peak trading period, you may apply to the IRD to change your balance date.

But there’s more to the EOFY than 31 March. With repayment deadlines and filing due dates, it is crucial to know all of the IRD’s key dates. To make it easier, add these deadlines to your calendar.

EOFY checklist for trade and field service businesses

As the end of the financial year approaches, businesses and individuals must fulfil their accounting and tax obligations. For field service businesses, this means ensuring all financial records are accurate, up-to-date, and compliant with New Zealand tax laws.

Here are the main items you’ll need to check off:

Submit annual tax returns for service-based income and expenses

Businesses are required to submit an annual tax return (IR4 for most companies, IR3 for individuals or the self-employed) detailing their service-based income and expenses. Be sure to accurately record all income from completed service jobs and related expenses.

Cash flow reports and automated invoicing systems can help keep finances on track throughout the year, making the preparation of your annual tax return much smoother and less time-consuming.

Prepare your GST returns

If your business is registered for GST, you'll need to file a GST return. It's essential to reconcile your GST records against your sales and purchases, ensuring you make any necessary adjustments before filing. Discrepancies can lead to delays or penalties, so accuracy is critical.

Many businesses use financial reports to track their GST balance throughout the year, helping them identify opportunities to manage spending and reduce GST repayments.

Review business assets and record depreciation

As a field service business, assets such as equipment, vehicles, and materials are essential to your daily operations. Proper depreciation management can significantly reduce your taxable income and help you optimise your deductions.

To simplify asset management and ensure accurate depreciation accounting, maintain an up-to-date log. For any vehicles or equipment you've purchased, make sure you've accounted for their depreciation.

Simpro’s strategies for a successful EOFY

For a seamless EOFY, staying on top of tasks throughout the year means the process runs smoothly when March comes around. Here are some strategies you can implement throughout the year to stay compliant and maximise potential benefits.

Organise financial records for service jobs

Begin by ensuring all service job records are up to date. Review invoices and payments for completed jobs to ensure accuracy. Using invoicing software can streamline the process, reduce the need for invoice chasing, and help identify discrepancies early to avoid delays.

Industry insider tip

“You can ensure all jobs are accounted for at the end of the year by using Simpro's Job Work in Progress (WIP) Report. This tool provides a clear overview of all open jobs, sorted oldest to newest, helping you invoice completed jobs and claim progress payments for ongoing work. Better yet, run this report weekly to help improve cash flow, prevent forgotten jobs, and keep your operations running efficiently!”

• Kelly Green, CEO at Modus Operandi

Review tax deductions for inventory and purchases

Run through assets and any business-related purchases to see if there are potential tax deductions you can claim. Whether it's tools, supplies, or equipment, ensuring everything is documented will help lower your taxable income. Implement a proactive system for identifying which purchases should be recorded as assets for depreciation. One effective way to do this is by providing different departments with access to a digital tool, such as a field service mobile app, where they can upload purchase history on the go and flag assets and inventory for easy tracking.

To reduce your taxable income, purchase any upcoming expenses, like postage or printer ink, before 31 March to claim them as early as possible.

Track vehicle expenses for service fleets

Tracking vehicle and fuel expenses is essential for field service businesses that rely on a fleet. You can claim tax deductions on fuel, repairs, and maintenance costs for the vehicles you use in your service operations. This can have a significant impact on your tax return.

Keep accurate records of your fuel purchases and any fleet-related expenses. A fleet tracking tool can help field staff quickly input their records and connect them to the office to generate reports.

Record training costs for field technicians and office staff

Don’t overlook training expenses for your field technicians and office team. These expenses may be tax-deductible if you’ve invested in training programs, certification courses, or professional development.

Address any legislation changes

Throughout the year staying informed on any legislative changes that could impact your tax filing and compliance is vital. New tax laws or adjustments to deductions may affect your financial reporting. Review these updates so you're prepared and maximise any new opportunities for your business.

Kick start future planning

EOFY is a perfect opportunity to reassess your business plan and make adjustments to stay on track for the year ahead. Make use of the work you’re required to do and use the fiscal reports and tax filing to inform broader business discussions, such as:

• benchmarks,
• KPIs, and
• performance against budgets.

Take the time to review your progress and set a strong foundation for the upcoming year.

Field service management tools to support EOFY

Business management software like Simpro can streamline many aspects of your operations, from invoicing and payroll to job management and reporting. By connecting the field to the office and streamlining your processes, Simpro helps businesses:

• track payments and invoices in real-time,
• automate tax calculations for job costs, expenses, and GST, and
• generate financial reports to streamline EOFY reporting and future planning.

Taking a proactive approach and using field service management software can set you up for success in the new financial year, making it easier to stay organised and compliant with tax regulations.

Simpro features to support your EOFY efforts:

EOFY glossary

Here are common words and phrases to know for the financial year:

EOFY (End of Financial Year)

The official date marking the end of the New Zealand financial year, which runs from 1 April to 31 March of the following year.

Tax Return

A document filed with tax authorities that reports income, expenses, and other relevant financial information, enabling the Inland Revenue Department (IRD) to prepare your tax returns.

GST (Goods and Services Tax)

A consumption tax applied to most goods and services. If the business is GST-registered, you must report the GST earned and paid. Businesses that expect to earn over $60,000 in 12 months must register for GST in New Zealand.

Depreciation

The reduction in the value of assets, such as computers or vehicles, over time, which you can claim as a deduction for business purposes. Depreciation needs to be reported each financial year.

Assets

Resources owned by a business or an individual used for business purposes, such as equipment, vehicles, and property that may be subject to depreciation and tax reporting if they have an expected life of more than 12 months and cost more than $1,000.

Liabilities

Debts or obligations a business owes, such as loans or unpaid invoices, which must be accounted for at EOFY.

Financial Statements

Reports detailing the financial activities of a business, including balance sheets, profit and loss statements, and cash flow statements.

Reconciliation

The process of ensuring financial records, including bank statements, accounts payable (i.e. expenses) and receivable (i.e. invoices) match and are accurate before EOFY.

Tax Deductions

Expenses that can be subtracted from gross income to reduce taxable income, such as business expenses, depreciation, and specific operational costs. Check with the IRD to see eligible tax deductions. Field service management tools like Simpro can be an eligible business expense.

Inland Revenue Department (IRD)

The government agency in New Zealand responsible for managing, processing and collecting taxes, including income tax, business tax and GST. The IRD ensures compliance with New Zealand tax laws.