As the end of the financial year is approaching for most businesses in New Zealand, it's time to start preparing your financial reports. In this blog post, we'll discuss why it's important to prepare your financial report early, the benefits it offers, and how it can help your business in the long run.

Preparing your financial report before the 31st of March next year, as required by the tax office, is a crucial step for businesses. However, there are several advantages to preparing them early. Firstly, it helps you avoid receiving reminders from your accountant or tax office, reducing any unnecessary stress. Secondly, if you plan to apply for a business loan in the coming months, banks usually require the latest financial reports, which could be from the 2023 financial year around May or June. Not having your financial reports ready could cause you to miss out on loan opportunities. Furthermore, some banks may be willing to calculate your income based on the latest financial report, which could significantly increase your loan capacity if you anticipate better performance in 2023 than in 2022. This could be particularly helpful in the current challenging lending environment.

If your company's performance has declined, you can claim a refund for any excess provision tax payment made in the past, which can improve your company's or personal cash flow. On the other hand, if your performance has been exceptionally good this year, you may need to top up your tax payment to avoid penalties. Early access to the past 12 months' performance allows you to identify issues and opportunities sooner and make necessary adjustments, ensuring that your business is on track to success.

In conclusion, preparing your financial report early has numerous benefits, including avoiding unnecessary stress, increasing your loan capacity, and identifying issues and opportunities early. Don't wait until the last minute; contact your accountant and take action now to prepare your financial report for 2023. This proactive approach will benefit your business in many ways, setting you up for a successful financial year ahead.

Thank you for reading our finance blog update, and we hope you found it informative. If you have any questions about preparing your financial report or would like to discuss business finance or business loans, please contact us today.

Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.