What is EOFY, and why it matters for sole traders
EOFY stands for "end of financial year". In New Zealand, the standard tax year runs from 1 April to 31 March. As a sole trader, your business income and expenses for that period flow straight into your personal income tax return - there's no separate company return to think about.
Unlike a PAYE employee, nobody is doing this reconciliation for you automatically. The week or two either side of 31 March is when it pays to get organised - chase what's owed, tally what you spent, and work out roughly what you'll owe IRD, before the numbers get harder to reconstruct.
The EOFY Checklist for Sole Traders
Reconcile your income against invoices sent
Go through every invoice you sent this financial year and match it against what actually landed in your bank account. Your taxable income is what you earned (or, if you use a payments basis, what you were actually paid) - not just what you invoiced - so this is the step that catches missing payments and invoices you forgot you sent.
Chase any invoices still unpaid before year end
An unpaid invoice sitting from three months ago is easy to forget once a new financial year starts. Send a final reminder now while the job is still fresh in the client's mind. See the chase overdue invoices playbook for the wording and timing that works.
Total your expenses by category
Pull together every business expense - materials, tools, fuel and vehicle, subcontractors, insurance, phone and internet, software - and check nothing is sitting uncategorised in a shoebox or a bank statement. Our sole trader expenses guide covers what you can and can't claim.
Check your GST position, if you're registered
If you're GST-registered, reconcile GST collected on sales against GST claimed on expenses for the year, and make sure your final return for the period lines up. Not registered yet but getting close to $60,000 in turnover? Read how to register for GST in NZ.
Set aside what you expect to owe in income tax
With income and expenses totalled, estimate your income tax and ACC levy so there are no surprises when you file. Use the free income tax and set-aside calculator to get a figure for the year just gone.
Gather the records you need to keep
IRD requires sole traders to keep business records - invoices, receipts, bank statements - for 7 years under the Tax Administration Act 1994. EOFY is a good time to make sure everything from the year is actually saved somewhere, not scattered across emails and a glovebox.
Know what your accountant needs from you
Most accountants want the same handful of things: total income for the year, expenses by category, your GST summary if registered, and a note of any large purchases (tools, equipment, a vehicle) that might need to be depreciated rather than claimed outright. Handing it over in one go, instead of in five follow-up emails, keeps your accounting bill down too.
How Invio helps at EOFY
EOFY accountant pack
From Reports > Tax & Export, Invio can build your whole financial year in one click: a printable summary statement (income, GST position, and an estimated tax set-aside), plus an invoice register and an expense register as CSV files - everything a sole trader typically hands their accountant.
It's free on every plan for NZ businesses. It's a starting point built from your Invio data, not a filed tax return - your accountant should still check the figures before anything goes to IRD.
eofy_summary_2026.pdf
Frequently Asked Questions
When does the financial year end for a NZ sole trader?
Do I still need to do this if I'm not GST-registered?
How long do I need to keep my records for?
What exactly is the EOFY pack in Invio?
Does Invio file my tax return for me?
When should I start my EOFY prep?
This checklist is general information, not tax advice. Every business is different - check the details that apply to you on ird.govt.nz or with your accountant before you file.