We made it to the End of the Financial Year!

Kia ora,

As we reach the end of the first quarter of 2026 and for many of you, the close of your financial year. I want to take a moment to acknowledge the work, commitment, and resilience that goes into running a business in today’s environment.

This time of year is always one of reflection and forward planning. Whether it has been a season of growth, consolidation, or challenge, our team is here to support you with the clarity and confidence you need for the year ahead. From preparing financial statements and navigating tax obligations to offering strategic advice, we remain committed to providing the trusted guidance PKF Bay of Islands is known for.

I would also like to take a moment to thank my team here at PKF Bay of Islands for their hard work throughout the year. Reaching this point is no small achievement — we did it! I am incredibly proud of the dedication and care you bring to our clients and our community.

Over the coming weeks, our team will be in touch with many of you regarding year-end processes and upcoming deadlines. If you have questions, uncertainties, or new goals you’d like support with, please reach out as we’re here to help.

Thank you for your continued trust in us. We value the relationships we’ve built with each of you and look forward to supporting your journey through 2026 and beyond.

Ngā mihi nui,
Ann-Maree Kingi
PKF Bay of Islands

Compliance, Tax & Technology

End of Financial Year Checklist

Here’s a handy checklist to help you get organised, maximise deductions, and ensure a smooth year-end process.

1. Financial Records & Housekeeping

Reconcile all bank accounts (including credit cards and loans) to 31 March
Ensure all invoices (sales & purchases) are entered
Review accounts receivable (chase overdue debts)
Review accounts payable (record all supplier invoices)
Check coding accuracy in your accounting system (e.g. Xero)
Software data backup – if your software is not cloud based, make sure you back up your data before rolling the software into the new year.

2. Income & Expenses

Confirm all income earned to 31 March is invoiced
Prepay deductible expenses where appropriate (e.g. insurance, subscriptions)
Write off bad debts (if genuinely unrecoverable - although you may choose to write off a debt this does not mean that you can no longer pursue its recovery.)

3. Stock (Inventory)

Perform a stocktake at 31 March
Identify obsolete or slow-moving stock (consider write-downs)
Ensure stock is valued correctly (cost or market value, whichever is lower)
If you are a farming client with a 31 March balance date, please record your livestock tallies and include these with your end of year records.

4. Assets & Depreciation

Review asset register for additions/disposals during the year
Identify any obsolete or scrapped assets for write-off

5. Payroll & Staff

Ensure all wages, PAYE, and KiwiSaver are up to date
Review holiday pay, leave balances or bonuses. These are tax deductible if paid within 63 days of balance date.

6.Tax & Compliance

Ensure all GST returns are filed up to date
Review provisional tax position – if your income is higher compared to previous years you may wish to consider a voluntary provisional tax payment.
Consider timing of income and expenses for tax efficiency
Check shareholder current accounts (for companies)
Ensure imputation credit account is accurate

7. Information for Your Accountant

Please have the following ready:

Bank statements to 31 March
Loan statements
Asset purchase/sale invoices
Stocktake results
Details of any major transactions or one-off events
Insurance, lease, and finance agreements

8. Talk to Us Early

The end of the financial year is the perfect time to plan ahead—not just tidy up the past.
👉 Contact PKF Bay of Islands early if you are:

Planning a major purchase or sale
Unsure about tax obligations
Looking to improve profitability
Considering growth, restructure, or succession

We can also help with:

Business Structure & Planning

Consider dividend declarations (if applicable)
Review trust distributions (if applicable)
Assess whether your current structure is still appropriate

Strategic Review

Review profit performance vs last year
Set a budget and goals for the new financial year
Identify cost savings or efficiency opportunities
Consider pricing reviews

Key Reminder

Good record-keeping and early planning = less stress, better tax outcomes, and fewer surprises.

If you have any questions, please do not hesitate to contact us on 09 402 7926 or email us.

Email the team

Terminal Tax Payments - Due 7th April 2026

For those who have terminal tax to pay for the 2025 financial year, please follow the instructions below to ensure your payment is processed correctly by Inland Revenue:

How to Pay Your Terminal Tax

1. Pay Online via Internet Banking
Most major New Zealand banks allow you to make tax payments directly.

Select “Pay Tax” or “Inland Revenue Payments.”

Choose the tax type: Income Tax

Select the period ending 31 March 2026 (or your balance date, if different).

Enter your IRD number in the reference field.

2. Pay Through MyIR
You can also pay directly through your MyIR account:

Go to ‘Make a payment’

Select Income Tax as the tax type

Enter the period and amount due.

3. Paying at Your Bank
If you prefer to pay in person:

Visit your bank and request to make a payment to Inland Revenue

Provide your IRD number, tax type, and the period ending.

There is also an option to set up an instalment arrangement with Inland Revenue if you’re unable to pay the full amount by the due date. If this is something you’d like to explore, please let us know and we can guide you through the process.

KiwiSaver Changes are on the way in 2026

Important KiwiSaver changes are on the way, and with the weeks already starting to fly by we want to remind you of the key things to prepare for.

Increase to Contribution Rates

From 1 April 2026 the default KiwiSaver contribution rate will increase from 3 to 3.5% for both employees and employers. The increase needs to be in place from the first pay period on or after 1 April 2026, unless a temporary rate reduction has been advised by the Inland Revenue.

Temporary Rate Reductions

From 1 February 2026 employees can apply to the Inland Revenue for a temporary rate reduction enabling them to continue with a 3% personal contribution to KiwiSaver instead of 3.5%. Reductions are approved from 3 to 12-month blocks of time and employees can apply for this as many times as they like. Employers can choose to match the approved temporary rate reduction for as long as it is in place. The Inland Revenue notifies employers when any approved reductions end, at which time contributions must automatically return to 3.5%.

New Contributions for 16- and 17-Year Olds

To date employers have only needed to contribute KiwiSaver contributions for employees aged 18 to 65. This changes from 1 April 2026 when employees aged 16 or 17 who are contributing to KiwiSaver from their wages will also be entitled to an employer contribution. This will be 3.5% in line with all employer contributions unless the employee requests a temporary rate reduction.

For more information or specific advice for your situation, the Inland Revenue is there to help.

Learn More

Its Our Birthday - Over 60 Years of Practice!

This year marks a major milestone for PKF Bay of Islands as we celebrate over 60 years of serving our community, businesses, and whānau across Te Tai Tokerau. What began as a small local practice has grown into a trusted firm known for integrity, expertise, and genuine care for our clients.

We are incredibly proud of our history, the relationships we’ve built, and the generations of clients who have trusted us to support their financial journeys. None of this would be possible without our dedicated team past and present, and the community that continues to put their confidence in us.

Here’s to the next chapter, continued growth, and many more years of working alongside you all.

We’re also celebrating with our annual Easter Competition! Hop over to our Facebook page and guess how many eggs are in the jar for your chance to take it home. It’s a bit of fun we love sharing with our community each year.

🎉 Entries close 15th April
👉 Enter here: https://www.facebook.com/share/p/1Ar5eHnEQm/