26 | Friday, March 27, 2026 | www.times.co.nz
Financial year end
THE FIVE BIGGEST MISTAKES BUSINESS OWNERS MAKE – AND HOW TO AVOID THEM With March 31 approaching, many business owners are focused on staying busy and finishing strong. However, year-end isn’t just about tax compliance; it’s one of the most important strategic checkpoints in your business calendar. Every year, we see capable business owners make the same avoidable mistakes. Here are the top five mistakes and what to do instead. Waiting until after year end to seek advice By the time April arrives, most tax planning opportunities are gone. Too many owners only speak to their accountant once the year is closed when the numbers can no longer be influenced. Solution: Have a pre-year-end review now. Project your profit, review drawings, consider asset purchases, and plan proactively.
Confusing profit with cash flow You can be profitable on paper and still run into cash stress. With higher interest costs and tight margins, cash discipline matters more than ever. Solution: Review debtors, stock levels and short-term liabilities before year end. Tighten credit control and protect cash going into the new financial year. Missing legitimate deductions Rushed or incomplete bookkeeping often leads to missed deductions or worse, over claim that create unnecessary tax risk. Solution: Ensure your records are up to date. Review fixed assets, bad debts, depreciation, and business expenses before 31 March. Remember the IRD 7-year record keeping requirement.
reassess whether your business structure still suits your growth, tax and asset protection needs. Solution: Step back and review profit allocation, personal exposure and succession plans. Strategic adjustments now can prevent costly issues later. Failing to plan forward The biggest mistake is treating year end as purely backward-looking without a plan going forward.
TAX TIME
sorted Solution: Set a budget and cash flow forecast for the next 12 months. Review pricing, costs, and growth targets. Businesses that plan ahead outperform those that simply react. Year-end should never feel like a surprise, it’s an opportunity. The businesses that thrive are the ones that prepare early and make proactive decisions. If you haven’t had your preyear-end strategy conversation yet, now is the time. Book that meeting with your accountant. Tommy Liu CA, MBA Chartered Accountant & Business Advisor Tommy and Co
Ignoring structure and risk Year end is the ideal time to
SUPPORTING BUSINESS OWNERS THROUGH GROWTH AND CHANGE
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