Preparing your annual accounts shouldn’t be a scramble. This page gives you the exact documents to gather, what accountants look for, and free PDFs you can download and work through. If you’re searching for annual accounts guidance in New Zealand, this is the simple version, no jargon, just what to do and why it matters.
Why annual accounts matter (beyond “ticking the box”)
- Stay compliant & audit-ready. IRD expects you to keep clear, auditable records for at least 7 years (paper or digital). If they review you, they’ll want to trace numbers back to the source.
- File accurately, avoid penalties. Clean accounts mean your returns match reality. Less back-and-forth. Fewer “please explain” letters.
- Make better decisions. Solid numbers show true margins, cashflow drivers, and pricing gaps. That’s how you decide what to grow, fix, or stop.
- Win trust with banks & partners. Lenders, landlords, and grant providers often ask for recent financial statements. Clear, consistent accounts build credibility.
- Protect cash with correct GST. You need valid taxable supply information (the modern “tax invoice”) to support claims and to invoice others properly.
- Keep inventory honest. If you hold stock, you’re expected to count and value it at year-end using an accepted method. This affects your profit and tax.
- Meet company law basics. Companies must keep proper accounting records so financial statements can be prepared and understood; directors are responsible for this.
- Work with (not against) the calendar. NZ’s standard tax year runs 1 April–31 March, so most annual work clusters around these dates.
What you’ll need (before you open the checklist)
Source records
- Full-year bank/credit card/loan statements + year-end confirmations
- Customer invoices / supplier bills, credit notes, contracts, grants
- GST taxable supply information for sales and expense claims
- Payroll summaries (if you have staff)
- Fixed asset purchases/disposals (with documents)
Accounting evidence
- Bank reconciliations to balance-date
- Aged debtors / creditors (notes on long-overdues)
- Prepayments & accruals list (with invoices/agreements)
- Trading stock count + valuation method; note obsolete/write-downs
- Working papers for depreciation, interest, allocations
Tip: Electronic records are fine, just keep them readable, organised, retrievable, and backed up for 7 years. English or te reo Māori is acceptable.
Quality checks (what accountants look for)
- Right year: Put income and costs in the year they belong.
- Example: work done in March goes in the March year, even if the cash hits in April.
- Bank matches your software: On balance date, your bank statement total equals the balance in Xero (or whichever accounting software you use).
- Nothing missing or “uncoded”: Invoice numbers run in order, and there’s nothing left sitting in “uncategorised” or “suspense”.
- GST proof in place: You’ve kept proper receipts/tax invoices for anything you’re claiming GST on. Zero-rated/exempt/overseas items are treated correctly.
- Stock and assets tidy: You counted stock at year-end, valued it the same way you did last year, and wrote down slow/unsellable items. Your asset list matches the depreciation in your accounts.
- Clear paper trail: Every number in the accounts can be traced back to a receipt, invoice, statement, or contract saved in your folder.
Common pitfalls (and how to avoid them)
- Personal vs business: Tag personal items; note split % for mixed bills
- Missing proof: Get a copy from the supplier or attach other evidence.
- Backups: Store all docs in one cloud folder; keep for 7 years.
- Stocktake: Count at year-end, value consistently, note write-downs.
- GST proof: Keep tax invoices for claims; no GST on overseas/exempt.
How to use the checklists
- Download the PDF(s) below
- Create one shared folder: “Annual Accounts NZ – 2025”
- Work line-by-line: gather docs → reconcile → note explanations
- Bundle a year-end pack: source docs + working papers + checklist
- Share the pack with your accountant (read-only is fine)
- Finalise & save the signed accounts in the same folder
Downloads (Free PDFs)
FAQs
What are “annual accounts” in NZ?
Your year-end financial statements—usually a balance sheet, profit & loss, and the supporting workpapers that show how you got there.
How long do I need to keep records?
At least 7 years. Electronic is fine if readable and retrievable.
Are digital invoices/receipts acceptable?
Yes. Keep complete taxable supply information to support GST claims and invoices.
Do I need a stocktake?
If you hold trading stock, yes, count and value it at year-end using an accepted method.
When is the NZ tax year?
For most individuals, 1 April to 31 March; many businesses plan their annual work around this cycle.
