Our Essential Guide to Navigating the New Financial Year
As we close out the 2025 tax year, it's the perfect time to start planning for the new financial year. Strategic planning early in the year will ensure smoother financial management and compliance, setting you up for prosperous year ahead.
Become proactive with our essential tips for success in the 2025/2026 financial year
Forecasting: Regularly forecast your expected income and expenses to identify potential tax liabilities and ensure there are sufficient funds for tax payments when due. This is especially important for businesses with seasonal fluctuations, like horticulture.
Maintain your records: Keep detailed records of all income, expenses, and receipts throughout the year. This will ensure smoother tax filing and help identify eligible deductions.
Strategic tax planning: Develop a proactive tax strategy early in the year to optimise your taxable income and deductions. Timing capital expenditures, like purchasing equipment, can reduce your taxable income through depreciation.
Stay up to date with new tax laws: As tax laws evolve, staying informed is essential, particularly with changes to income tax, deductions, and compliance. Check in with your accountant for clarification on new laws and how they may impact you.
Understand deductions and incentives: Take full advantage of available tax incentives and deductions, such as those for exporting NZ made or investing in sustainability.
Review business structure: Assess your business structure (e.g., sole trader, partnership, company, or trust) and talk with your accountant regularly to ensure its optimised for tax efficiency.
Regular financial reviews: Regular quarterly reviews of your financials will help you stay on track with projected tax liabilities and give you time to make adjustments as needed.
Planning for trusts and succession: Review your trust structure and income distribution strategy, especially in light of the recent changes to trustee tax rates, to minimise tax liabilities.
Have the right accounting team behind you
Lastly, having the right accounting team behind you can make all the difference when it comes to navigating the complexities of the tax year. With the expertise and support of our experienced team, you can confidently approach the new financial year knowing that your financial strategy is in capable hands. We’re here to guide you through proactive planning, ensuring your business stays on track and minimises its tax position. Come in for a chat with Amanda or Maria, and we’ll map out a plan to ensure your business thrives this year and beyond.