If you haven’t filed your tax return yet, you’re not alone but leaving it late can cost you. In this discussion, Lighthouse Accounting Director, Amanda Quill unpacks why organisation, documentation, and early planning matter far more than last-minute scrambling when tax time rolls around.
Start With Documentation
If you haven’t filed your tax return yet, the first rule is simple: if it’s not documented, it’s not deductible. Amanda explains that Inland Revenue can ask you to verify income and expenses, just like a bank would when assessing a loan.
For businesses and property owners, this means keeping clear records for:
Bank feeds through software like Xero help, but they don’t replace source documents. End-of-year bank statements, invoices for large purchases, and loan agreements all matter – especially when something sits outside your “normal” spending patterns.
These Are the Documents That Matter Most
Knowing what documents to gather can save hours of back-and-forth later. Amanda highlights several key documents:
For businesses
-
Bank statements showing year-end balances
-
Invoices for large asset purchases (like vehicles or equipment)
-
Loan statements where interest may be deductible
-
Insurance policies tied to business assets
For rental property owners
-
Property manager statements (monthly and end-of-year)
-
Invoices supplied by the property manager for repairs and maintenance
-
Rates notices for deductible rates
-
Insurance documents
Amanda also notes Inland Revenue can request invoices for expenses over $500 and can look back up to seven years, making long-term record keeping critical.
Interest, Assets, and Why Principal Repayments Don’t Reduce Tax
A common frustration is why loan principal repayments aren’t deductible. Amanda explains that principal repayments increase ownership of a capital asset, which is instead deducted over time through depreciation.
What is deductible:
This distinction is especially important for investors juggling tight cash flow while still facing a tax bill.
Insurance: One of the Most Missed Deductions
If you haven’t filed your tax return yet, insurance is an area many people overlook.
This is one of the examples where understanding the policy detail makes a real difference to your tax outcome.
Record-Keeping: Why Busy People Miss Out
The team agree most people don’t miss deductions because they’re dishonest – they miss them because they’re busy.
Common problem areas include:
-
Paying business or property expenses from personal accounts
-
Forgetting to save invoices for unusual or one-off costs
-
Relying on memory at year-end instead of systems during the year
Practical tips shared include:
-
Using one bank account per business or property
-
Creating a dedicated folder for each tax year
-
Saving invoices as soon as they arrive (in Xero, Dropbox, or similar)
The easier it is for your accountant, the less time and cost involved at year-end.
When Should You Talk to an Accountant?
The advice is clear: earlier is better.
Ideally, you engage an accountant:
-
Before starting a business
-
When income, expenses, or debt levels change
-
Before the end of the tax year if something needs to be written off
Waiting until the end of March often means missed opportunities and extra clean-up work.
Key Takeaways
-
If you haven’t filed your tax return yet, start with documentation – no documents means no deductions
-
Separate bank accounts make tax time faster and cheaper
-
Interest can be deductible, principal repayments are not
-
Income protection insurance may be deductible depending on policy type
-
Inland Revenue can request records going back seven years
-
Early conversations beat last-minute fixes every time
Next Steps
If your tax strategy starts in March, you’re already behind – Lighthouse Accounting helps clients get organised early so tax outcomes aren’t left to luck.
If you’d like to watch more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
