We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

Required for farming businesses that own livestock.

Livestock

A 12-month plan designed for new business owners starting out, who may want some extra guidance around business structure, accounting software setup and training, and more.

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter pack

We prepare your GST returns ready for you to review and pay. We also remind you of when and how much to pay, and even send an alert if you forget! Requires Xero.

Prepare GST

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time. Requires Xero.

Bank reconciliation

We set you up with the right Xero subscription and manage your payments.

Xero monthly subscription

We set up your Xero file so it is optimised for you and your business.

Xero setup

An hour of training on how to use Xero to it's full potential.

Xero training

Learn the tax rules for rental income, from deductions and GST to interest deductibility and brightline tests.

TAX  •  13 FEBRUARY 2026  •  4 MIN READ

How tax works for rental income in New Zealand

The moment rent starts hitting your account, it also enters the tax system. Knowing how these two worlds connect is what separates confident landlords from confused ones. 

New Zealand's property tax system isn't designed to be intimidating, yet the details can get tricky. The good news is once you understand the basics, it becomes much easier to stay on top of things and keep more of what you earn.

Understanding how much you get taxed on rental income makes it easier to manage your investment confidently and avoid surprises when it's time to file.

How rental income is taxed (and how much you'll pay)

In New Zealand, the tax on rental income depends on who owns the property.

If the property is owned by an individual

Rental income is taxed at the owner's marginal tax rate, as part of their annual income tax return. If the property is jointly owned, each owner returns their share of the rental income and expenses.

Rental profit (or loss) is part of the company's income and is taxed at the company tax rate (currently 28%). 

Rental profits form part of the trust's income. Broadly speaking, the tax amount depends on whether income is retained by the trust or distributed. For trustee-retained income, the trustee tax rate is 33% when trustee income is $10,000 or less, and 39% when it's more than $10,000 (with some exceptions). If the income is distributed to beneficiaries, it’s taxed at their personal tax rate.

If you're a New Zealand tax resident, you're generally taxed in NZ on your worldwide income, which can include rental income. 

If you're non-resident for New Zealand tax purposes, your NZ-sourced rental income is still taxable in NZ, and you'll generally need to declare it in a NZ return and keep records for expenses. 

You may be able to claim relief to avoid double taxation through a double tax agreement, depending on your situation and the relevant treaty.

Important: Non-resident withholding tax (NRWT) does not apply to the rent you receive. However, if you have a mortgage with an overseas lender, NRWT or Approved Issuer Levy (AIL) may apply to the interest paid on that loan.

GST treatment depends on whether the property is residential or commercial, and how it is used. 

A common question landlords ask is “does rent include GST?” and for long-term rentals, the answer is no because this type of rent is GST-exempt. This means you do not charge GST on the rent you receive. You also can't claim GST on expenses related to providing that residential rent. This applies to standard tenancy arrangements where someone lives in the property as their home. 

If you provide short-stay accommodation such as Airbnb, Bookabach, or serviced accommodation, this is treated differently from long-term renting. 

This type of activity is considered a taxable supply for GST purposes. If your total turnover from all taxable activities exceeds $60,000 in any 12-month period, you must register for GST. 

The platform you use to list the property may be required to collect and return GST to IRD on your behalf. You can read more about it in our article about GST and digital marketplaces. 

Commercial property rentals (e.g. offices, shops, warehouses) are generally GST-taxable if the owner is GST-registered. In that case, you charge GST on the rent and claim GST on related expenses. When seling the property to another GST-registered person for a taxable activity, the sale can be zero-rated for GST.

Every property costs money to run, but not every cost counts when it comes to tax. The IRD only lets you claim expenses that are directly related to earning rental income. It's quite simple - you can deduct what keeps your property running, not what improves its value. 

Think of deductible expenses as the daily running costs of being a landlord. You can generally claim:

Maintenance and repairs that keep the property in the same condition.

Insurance, rates, and body corporate fees.

Property management and accounting costs, including preparing your tax return.

Loan interests, if it's for the rental (and within the current deductibility rules).

Depreciation on chattels (carpets, appliances, or furniture that wear out over time).

You can't deduct anything that makes the property better than it was before as they are considered improvements. Renovating a bathroom, building a deck, or replacing an entire fence are examples of capital work. They add long-term value, so they're treated differently for tax. (You may still be able to claim depreciation, so please discuss it with your accountant).

If it restores or repairs, it's usually deductible.

If it upgrades or extends, it's capital. 

When in doubt, note what changed and why. Those often help your accountant or the IRD if questions come up later.

Most disputes around rental property deductions come down to evidence. Keeping receipts, invoices, and brief descriptions of each expense makes it far easier to prove what you've claimed. A tidy paper trail can be the difference between a smooth return and an IRD query.

When you borrow to buy or improve a rental property, the interest you pay on that loan is usually tax-deductible. The rules have changed several times in the past, but they are now stabilising. 

From 1 April 2025, most landlords can claim 100% of their interest costs as a deduction. This follows several years of phased deductions, which were reduced under earlier housing tax reforms. 

There are some exceptions. You can't claim interest on:

Loans for your main home, even if you rent out a room.

Properties owned through entities that don't primarily hold residential land.

Certain mixed-use assets that are used partly for private purposes. 

Keeping loan and usage records is important, since IRD checks how funds are used. 

If you sell a residential property within a set period, you may have to pay income tax on any gain. This is known as the bright-line test, and it currently applies if you sell within 10 years of purchase (for new builds, the bright-line period is 2 years).

If the sale is taxable under this rule, you may be able to claim back interest that wasn't previously deductible while you owned the property. 

The bright-line test is designed to identify short-term property speculation. It's one of the most important areas where interest deductibility and property tax rules overlap. 

Sometimes your rental expenses, such as mortgage interest, maintenance, or property management fees, can exceed your rental income, creating a loss. In the past, landlords could offset these losses against other income such as salary or business earnings to reduce their total tax bill. 

That changed with the introduction of the loss ring-fencing rule. Today, if you make a loss from your rental property, you can't use it to reduce tax on your other income. Instead, the loss is "ring-fenced," meaning it's carried forward and can only be used to offset future rental profits or taxable property gains. 

This rule is designed to prevent property investors from using rental losses to lower their income tax from unrelated work or business activities. It doesn't mean the loss is gone. It simply delays when you can use it. 

For example, if you made a $10,000 rental loss this year, you can't claim it against your salary now. But next year, if your rental makes a $15,000 profit, you can use the $10,000 carried-forward loss to reduce your taxable rental income to $5,000. 

If you own multiple rental properties, losses and profits across them are combined, so the total result is what determines how much can be carried forward. 

At the end of each tax year, landlords must file a rental property tax return declaring all income and expenses. Supporting records must be kept for seven years. 

It's worth consulting an accountant to help you stay compliant, avoid common mistakes, and identify deductions you might otherwise miss.

Understanding how tax on rental property works doesn't have to feel daunting. Think of it as learning the framework that supports your investment. When you stay organised and ask questions early, tax becomes another tool for managing your rental and not a source of worry.

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Finding the right business accountant is not easy. In this blog, we'll explain how to find the right accountant for your small business. 

BUSINESS ADVICE  •  2 JANUARY 2026  •  7 MIN READ

A practical guide to finding the right accountant in New Zealand, including what they actually do, how much they cost, and what to look for before choosing.

How to Find the Right Business Accountant

Maybe you’ve just started a small business and are thinking about hiring an accountant. Or you may have been in the business for a while and feel ready to hire a professional. Finding the right accountant for your small business is not easy.

Considering a lot of small businesses are on a tight budget, the cost of hiring external help is always an important consideration. However, a good accountant for small businesses acts as a financial and business adviser in ways you might not expect.

How to find the right small business accountant

A good accountant provides essential support for your business. While compliance is part of the job (and the most well-known part), it's rarely the full picture. 

Most accountants provide support in the following areas:

Accountants handle essential compliance work such as preparing tax returns, filing accounts with Inland Revenue, ensuring GST submissions are accurate, and managing any other tax obligations.

Accountants identify legitimate tax minimisation opportunities in line with current legislation. They advise on structure, remuneration, dividends, and other tax considerations to ensure decisions are made with clarity and understanding.

Beyond compliance, accountants can turn financial data into meaningful reports that show how the business is performing throughout the year. This often includes profitability, margins, cash flow and trends, with a focus on explaining what the numbers mean in practical terms.

Accountants also support forward-planning, whether that’s budgeting and cash flow forecasting or assessing the financial impact of growth decisions such as hiring, expansion, or pricing changes. Data-led professional advice helps businesses plan with confidence.

Many businesses use accounting software like Xero or QuickBooks. Accountants can help set systems up correctly, ensure data is reliable, and resolve issues or discrepancies when things don't line up.

Accountants often act as a sounding board as questions arise throughout the year. This support helps business owners make informed decisions and stay on top of their obligations.

When is the right time to get an accountant?

There's no single moment that applies to every business, but certain milestones often trigger the need for support.

Starting a business or changing structure: Setting things up correctly from the outset helps avoid problems later. An accountant can advise on business structure, registration requirements, and ongoing obligations. 

Business growth or increased complexity: Growth often brings new challenges. As complexity increases, so does the risk of errors without proper support. Accountants can support you through these changes such as when you're hiring staff, opening and operating new locations, or dealing with different currencies.

GST registration: GST adds another layer of reporting and record-keeping. Many businesses that haven’t worked with an accountant previously may choose to at this stage to ensure they’re compliant.

Dealing with the IRD or upcoming deadlines: If tax deadlines or a letter from the IRD causes stress or uncertainty, that's usually an indicator you need external support.

Applying for finance or investment: Preparing for loans, investment, or buying or selling a business requires clear, credible financial information. Accountants play a key role in getting everything in order and presenting the business accurately.

It’s also worth considering how much time you’re currently spending on accounting-related tasks compared to your hourly pay. If your hourly rate is $100 and you spend 10 hours a month on accounting tasks, you’re losing $1000 per month at a minimum. If an accountant takes on that work, you’ll likely pay a lot less, and you’ve gained 10 hours that you can use for something else, whether that’s generating more revenue or having some extra downtime.

Tips for finding the right accountant for your business

Not all accountants work in the same way. Finding the right accountant comes down to how well they support you and your business.

Your accountant should be able to explain complex issues in plain terms so decisions are easier to make. 

Tax rules and reporting requirements change regularly. A good accountant keeps up with these changes and flags what's relevant to your business. 

Response times and availability can make a significant difference. Knowing when and how you can get support is often more important than meeting face to face. Waiting weeks for answers can hold your business back.

Many modern accountants use cloud-based systems, making professional support accessible without a local office or in-person meetings. The most important thing is that your accountant works as a trusted partner, not just a service provider.

Your accountant sees sensitive financial information, so trust is essential. A good accountant acts with integrity, providing honest advice and safeguarding your business’s information at every stage.

Key questions to ask or consider when choosing an accountant

What does the year-end process look like?

How do you help clients minimise tax and plan ahead?

What services are included vs optional add-ons?

What level of ongoing support can I expect?

These questions reveal how an accountant actually works, rather than just what services they offer.

Accounting costs and what affects the price

The cost of an accountant in New Zealand depends on your business and the support you’re after. For example, a sole trader with one client and minimal transactions will pay much less than a larger company with employees, stock and more complex reporting.

At the lower end, micro businesses that only want income tax support may only pay a few hundred dollars per year. Small to medium-sized businesses typically pay around $2000 - $5000 per entity per year, either as a fixed monthly rate or an hourly charge.

Timing (seeking help right before a deadline can increase fees)

Experience and qualifications (Chartered accountants often charge more)

Location, with higher fees often seen in larger cities (due to larger overheads)

When assessing the cost of an accountant, value matters more than finding the lowest price. Remember, accounting fees are also tax-deductible, so the cost is partially offset. A good accountant who also works as a trusted business advisor is worth their weight in gold.

Some very small or simple businesses manage their own accounts at the start. That can work for a time, but as the business grows, obligations increase and decisions carry more weight. Professional support becomes increasingly important. 

For many businesses, an accountant becomes a long-term partner rather than a one-off resource. By working with an accountant year-round you get clearer visibility on your numbers and can make data-driven decisions.

Beany works with New Zealand businesses that want modern accounting support without relying on traditional physical offices. The focus is on compliance, clarity, and ongoing guidance that helps business owners understand their numbers and make better decisions. 

If you're exploring your options or thinking about switching accountants, a conversation can help you work out what level of support makes sense for your business, without pressure or commitment. Get in touch or book a free consultation to discuss your accounting requirements.

How to find the right accountant for your business

Business advice

Strategies for New Zealand seasonal businesses to manage peaks and slow months for year-round financial stability.

BUSINESS ADVICE  •  2 FEBRUARY 2026  •  5 MIN READ

Practical cashflow strategies for Australian seasonal businesses to manage peaks and plan for slow months to ensure financial stability year-round.

Strategic cashflow management for seasonal businesses

Seasonality is a common part of running a business in New Zealand. Tourism cycles, weather patterns, school holidays, agricultural seasons, and construction demand all create somewhat predictable peaks and quieter stretches in revenue.  

The goal is not to eliminate these cycles, but to manage them in a way that keeps the business steady, compliant and financially comfortable all year round. Here are practical ways to plan for the natural ups and downs.

Create a rolling 12 to 18 month cash flow forecast for a forward-looking view of how money is expected to move in and out of the business over time.

This longer view matters more for seasonal businesses because it captures at least one full cycle of highs and lows. It lets you see how strong trading periods need to support slower months and highlights when cash pressure is likely to appear before it becomes urgent. 

Modelling best-case, expected, and worst-case scenarios helps clarify how much buffer the business needs if sales fall short or costs rise unexpectedly. 

In New Zealand, the forecast should also account for the timing of the following:

These commitments continue regardless of how busy or quiet the business is. 

A cash reserve allows you to cover fixed expenses during slower periods without scrambling for short-term solutions. 

During high-income months, deliberately set aside part of the profit to support the quieter season ahead. Many seasonal businesses aim to reserve around 20% to 30% of peak earnings to cover several months of operating costs such as rent, wages, repayments, and insurance. 

Keeping this money in a separate account creates a clear distinction between working cash and stability funds. 

Having this cash reserve in place makes decision-making calmer and prevents the need for rushed borrowing when revenue slows. 

3. Adjust costs to match seasonal reserve

Not all costs need to stay fixed throughout the year. Reviewing where expenses can scale up or down can make a significant difference during low-income months. 

Some expenses are essential during peak periods but unnecessary when demand drops. Planning ahead to pause or reduce them preserves cash without harming long-term performance. 

Even small cost adjustments, when planned in advance, can improve cash resilience and reduce the need for reactive decisions during slower months.

While seasonality is unavoidable for many industries, some businesses can create additional income outside peak hours. 

Examples include offering off-season services, advance booking incentives, maintenance work, consulting, or packaged deals that encourage customers to commit earlier. 

Payment structures can also help. Annual pricing, retainers, subscriptions, deposits, or pre-sales spread customer payments across the year instead of concentrating revenue into a short window. 

Even partially smoothing income reduces reliance on reserves or finance during slower months.

5. Tighten credit control during peak periods

When sales are high, it's easy for credit control to slip. This can create problems later when income slows but unpaid invoices remain outstanding. Invoices should be issued promptly, with clear terms that are consistently enforced. 

For larger jobs or higher-risk work, deposits or upfront payments can protect cashflow. Some businesses also encourage faster payments by offering small early-settlement incentives. 

Strong habits during busy periods make quiet periods much easier to manage. 

The timing of outgoing payments can influence cashflow as much as incoming revenue. Where possible, work with suppliers to agree on payment terms that better match when income is received. Staged payments or extended terms can ease pressure without affecting relationships. 

Bulk buying ahead of busy periods can be effective, but only if it doesn't tie up cash needed later. Careful inventory planning ensures money is available when revenue dips. Managing payables intentionally helps avoid unnecessary borrowing. 

Overdrafts and working capital facilities can be useful for seasonal businesses when they are part of a plan. They work best as deliberate bridges between high and low periods.

Used intentionally, finance can help cover timing gaps between income and expenses without disrupting day-to-day operations. Used reactively, it can create ongoing pressure long after the slow season has passed. 

Long-term debt is generally better suited for long-term investments, such as equipment, expansion, or infrastructure that supports growth. Using it to manage short-term cash shortfalls can lock the business into repayments that no longer align with revenue cycles. 

The transition between busy and quiet periods is when regular reviews becomes most valuable. 

Comparing actual results to your forecast each month helps identify small issues before they grow. Monitoring metrics such as debtor days, creditor days, margins, and stock levels provide early warning signs if cashflow starts tightening. 

Early adjustments are far easier than last-minute corrections. 

Seasonal income can make tax obligations feel unpredictable, particularly when payments are due during slower months. Setting aside money for tax as income is earned helps avoid cashflow shocks later. Treating tax as a regular expense can also make planning simpler and reduce the likelihood of needing payment arrangements with the IRD.

For some seasonal businesses, the Accounting Income Method (AIM) for provisional tax can also be worth considering. AIM allows provisional tax to be calculated on actual profits during the period, rather than estimates based on previous years. GST and provisional tax are effectively aligned with how the business is performing in real time. This can work particularly well for businesses with fluctuating income as tax payments rise and fall with profitability instead of landing at fixed amounts during quiet periods.

Seasonality does not have to create financial stress. With the right systems in place, busy periods can strengthen the business and support the months that follow.

Beany supports New Zealand businesses with cashflow forecasting, tax planning, and ongoing financial clarity, helping owners make informed decisions no matter the season. If you’re looking for an accountant for your business, get in touch or book a call with us.

 Strategic cashflow management for seasonal businesses

Be ready for year-end with our EOFY preparation checklist.

TAX  •  2 FEBRUARY 2026  •  5 MIN READ

A practical EOFY preparation checklist for New Zealand businesses to organise finances, reduce tax risk, and file with confidence. 

Year-End Preparation for New Zealand Business Owners

Preparing for year-end isn't just about closing the books. It also sets the clock ticking on filing and tax obligations.

To help you prepare, we've put together a checklist of key areas that are worth reviewing before the financial year comes to a close.

As you approach year-end, your bookkeeping should be fully up to date. Check that all sales invoices for the year have been raised and all expenses have been accurately recorded.​

This means reconciling bank accounts, ensuring receipts are uploaded or attached, and checking that transactions are categorised correctly. Incomplete records can destroy your profit figure and create delays when accounts are being prepared.

Outstanding invoices count as income, even if the cash has not arrived. At EOFY, this can quietly inflate profit and tax. 

This is the point to assess whether outstanding debts are genuinely recoverable. If a customer has gone quiet, is in financial trouble, or has shown no progress despite follow-up, it may no longer be appropriate to treat that invoice as income. 

Would you still expect to collect this in six months?

Is this a genuine receivable or simply optimism?

Bad debts usually need to be written off before EOFY to be deductible. Waiting until later can mean paying tax on income you never receive. 

Missed creditors are one of the most common EOFY errors and often leads to overstated profit. 

Check whether all bills incurred before 31 March have been entered, including professional fees, interest or supplier invoices received late. Accurate liabilities help ensure your tax position reflects reality. 

Fixed asset registers often contain items that no longer exist or are no longer used. Electronic devices that are obsolete or have been upgraded are a classic example.

Go through the list and check whether assets have been sold, upgraded, scrapped, or are no longer in use. Removing obsolete assets can unlock deductions and simplify depreciation in future years.

5. Treat stocktake as a financial exercise (if applicable)

For businesses holding stock, EOFY stock values directly affect taxable income. This is the time to identify obsolete, damaged, or slow-moving stock and ensure it is valued appropriately. Overstated stock is one of the fastest ways to overstate profit.

If you claim vehicle expenses, EOFY is when usage assumptions are tested. 

Confirm that your logbook is still valid and up to date, that business-use percentages still reflect reality, and that any changes in use are documented. Without proper records, claims are restricted to 25% regardless of actual usage. This can make a big difference to your tax return.

Reminder: a logbook should record all business and personal kilometres for at least 90 days, and can be used for up to 3 years provided there’s no significant change in the vehicle’s use.

Read more: claiming motor vehicle expenses

If your business is GST-registered, all GST returns covering the financial year should be submitted and aligned with your bookkeeping.

Unfiled returns, inconsistencies, or missing documentation can delay accounts preparation and trigger follow-up work.

Payroll records should be reviewed ahead of year-end. This includes checking that payroll reports are complete and employee records are accurate. You should also ensure that all payroll journals have been posted for the year.

9. Organise documents for the questions that often come up

Most EOFY delays are caused by missing or unclear documentation. Preparing these early saves time later and reduces back-and-forth during tax return preparation. 

Loan and lease agreements entered during the year

If an expense is large, unusual, or new, expect it to be queried.

We recommend keeping these sorts of documents stored in an easily accessible location to avoid any scramble to find them later.

10. Review your business and tax structures

Before year-end is a good time to review whether your current business structure is still the right fit. Do you need all those entities and tax structures? Maybe you need two companies and three trusts, maybe you don’t. Maybe it might be time to move from a sole trader to a company.

Reviewing this before year-end allows all compliance to be wrapped up for the current year, with any changes starting cleanly in the new year. Changing structures at another point in the year creates additional filing and reporting obligations for every structure that existed during that period, which is why year-end is the simplest and best time to make these decisions.

11. Reflect on performance and plan ahead

Preparing to close off the financial year is also a chance to step back and assess how the business has performed. Reviewing income, costs, and cash flow patterns can highlight trends that are easy to overlook during the year. ​

Many business owners use this point to produce a high-level budget or forecast for the next financial year. Even a simple one can help guide decisions as the new year begins.

Getting ready for year-end does not have to be stressful. Beany works with New Zealand businesses to prepare accounts, handle filings, and keep everything compliant with the IRD. If you want an accountant who supports your business, get in touch or book a consultation with us today. 

Year-end preparation for New Zealand business owners

Testing

How tax works for rental income

How to find the right accountant for your business

Strategic cashflow management for seasonal businesses

Year-end preparation for New Zealand business owners

Filing income tax returns in New Zealand

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