The end of financial year (EOFY) in New Zealand falls on March 31, 2026. For many small and medium enterprises (SMEs), it is one of the most financially demanding periods of the year.

Tax obligations, GST, payroll and supplier invoices can all fall due at the same time. The goal is not to overhaul your business overnight. It is to focus on the actions that protect cash flow and create a steady start to the new financial year.

Here are six practical steps to help you close out EOFY smoothly and set your business up for success.

1. Know your numbers

Before making any decisions, take a clear look at your current position.

Understand how much cash is available, what payments are due in April and May, and whether recent revenue levels are consistent.

If there are pressure points ahead, identifying them early gives you more flexibility in how you respond.

2. Organise key documents

EOFY becomes stressful when paperwork is all over the place.

We’ve put together a handy checklist to show you a breakdown of the documents and statements you might need for EOFY:

Category Required documents
1. Financial statements ☐ Profit and loss
☐ Balance sheet
2. Tax documents ☐ Income tax return
☐ GST returns
☐ PAYE records
3. Business records ☐ Invoices
☐ Receipts
☐ Bank statements
☐ Loan and assets etc.
4. Employee records ☐ Payroll summaries
☐ KiwiSaver contributions
☐ Leave balances
5. Other supporting docs ☐ Stocktake
☐ Expense claims
☐ Dividends

Don’t forget to double check with your accountant or tax professional before you submit.

3. Maximise your deductions

No business wants to pay more tax than necessary. EOFY is a good time to review your business expenses and ensure you are capturing all eligible deductions.

This may include day-to-day operating costs such as software, equipment and other business expenses. If you’re purchasing eligible new or new to New Zealand depreciable assets before March 31, the Investment Boost allows a 20 per cent upfront deduction on qualifying items, subject to Inland Revenue criteria.

For a detailed breakdown, read our guide to NZ’s Investment Boost and how it works.

You can also refer to the official guidance on claiming expenses for a broader overview of deductible costs.

4. Reduce outstanding invoices

Chasing unpaid invoices is rarely enjoyable, but neither is feeling cash flow tighten at the end of the financial year.

If clients are slow to pay, now is a good time to follow up and bring accounts up to date before March 31. Even a small reduction in overdue invoices can make a difference.

You might consider:

  • Offering early payment incentives, where appropriate
  • Applying agreed late payment terms
  • Reviewing or automating your invoicing process.

Reducing overdue invoices gives you a clearer view of your financial position heading into the new financial year.

5. Review upcoming purchases

If your business is planning to upgrade equipment, vehicles or technology, EOFY is a practical time to review what is genuinely required.

While end-of-financial-year specials can be appealing, the focus should remain on purchases that add real value to your business.

Make sure the timing works for your cash flow rather than adding pressure. If extra flexibility is needed, exploring funding options early can help you step into the new financial year with confidence.

6. Plan the first 90 days

Instead of focusing only on the year behind you, look forward. Mapping the first quarter of the new financial year can reveal pressure points early.

Here is a simple overview to consider:

Area Why it matters
Tax obligations May affect short-term cash availability
Payroll Ongoing fixed cost that requires consistency
Supplier payments Impacts relationships and stock levels
Operating expenses Influences day-to-day cash flow
Revenue outlook Helps identify potential slow periods

Having visibility over the next few months can reduce uncertainty and help you step into the new financial year with greater confidence.

Need flexibility this EOFY? Bizcap can help

If cash flow feels tight or you want added flexibility for the new financial year, Bizcap provides fast and flexible business funding designed to support growth without slowing operations.

FAQs

When is EOFY in New Zealand?

EOFY in New Zealand, also referred to as the end of financial year in New Zealand, is March 31 each year. The new financial year begins on April 1.

What does EOFY mean in New Zealand?

EOFY stands for end of financial year. In New Zealand, the standard financial year runs from April 1 to March 31.

What happens at the end of the financial year in NZ?

At the end of the financial year, businesses finalise financial records, calculate taxable income and prepare for annual tax reporting in line with Inland Revenue requirements.

Can asset purchases qualify for tax deductions before EOFY in NZ?

Certain eligible new or new to New Zealand depreciable assets may qualify for an upfront deduction under the Investment Boost initiative, subject to Inland Revenue rules and criteria.

Why can EOFY affect business cash flow?

EOFY can influence cash flow because tax payments, supplier invoices and revenue cycles often align around the same period, which may affect short-term liquidity.

What is the Investment Boost in New Zealand?

The Investment Boost allows businesses to claim a 20 per cent upfront deduction on qualifying new or new to New Zealand depreciable assets, with the remaining balance depreciated over time according to existing Inland Revenue rules.

How can Bizcap support businesses during EOFY?

Bizcap provides fast and flexible business funding for New Zealand businesses seeking additional flexibility around the end of the financial year. Funding options and eligibility criteria apply.

Disclaimer: This information is general in nature and does not constitute legal, tax, or financial advice. While we have taken care to ensure the accuracy of this content at the time of publication, rules and regulations may change. For advice specific to your business or circumstances, please consult a registered tax agent, accountant, or the Inland Revenue Department (Te Tari Taake).