January 2026 Newsletter
Welcome to the New Year!
Well done on making it through the last year – 2025 was certainly a grind.
All we can do is keep going, focus on profits and cashflow (see our tips below) and try to stay hopeful. The economy will turn at some point.
The next few months
We all know how brutal cashflow can be in the January – May period. Now is a great time to start chasing debtors, to make sure invoicing is up to date, and to start planning your cash in and out for the next few months.
Below we outline the upcoming tax payment dates, but rest assured there are multiple options for paying these, and if your profit is down, we can estimate your third provisional tax payment.
As always, if you have any questions or just need a sounding board, feel free to give us a call.
Jen, Lize and the team at KGA
Last Call for Questionnaires
If your 2025 accounts have not yet been completed, please send us your documents as soon as possible.
If we receive your documents after the 15th of February, we cannot guarantee your accounts will be completed by the IRD deadline of 31 March 2026.
As always, if you would prefer your questionnaire be posted to you, or if you would prefer to complete the online version, please let Sara know.
Sara Jansen
sara@kgaw.co.nz
Sales are for Vanity, Profit is for Sanity and Cash is King
Have you heard the phrase ‘sales are for vanity, profit is for sanity’?
It’s spot on and emphasises that while a high turnover may sound great, if your business isn’t making a profit, the higher sales go, the larger loss you are likely going to make. Profit reflects the true health of a business. Get the profit formula right, then look at growing your sales.
Cashflow is also often overlooked but is crucial for maintaining operations, profitability and stress levels.
So, if you’re going to measure two things, make them:
1\. Profitability – run your Xero profit and loss at least monthly, ideally weekly.
2\. Cashflow – check your business bank balance weekly if not daily.
When one of these items is struggling, identify why and make changes immediately.
If you need our help with this – we are only a phone call away.
Upcoming Provisional Tax and GST Dates
Income Tax – 2025
Terminal Tax for the 2025 year is due for payment on 7 April 2026.
Income Tax – 2026
The third Provisional Tax payment for the 2026 year is due for payment on 7 May 2026.
We will remind you of the above payments closer to the time.
GST – 2 monthly filers
The 2-monthly GST return for December/January is due for filing and payment on the 28th of February 2026.
The 2-monthly GST return for February/March is due for filing and payment on 7 May 2026.
GST – 6 monthly filers
The 6-monthly GST return for the period 1 October 2025 – 31 March 2026 is due for filing and payment on 7 May 2026.
AIM Returns
Some of our clients find paying provisional tax 3 times per year a challenge in terms of cashflow. If this is you, please give Jen a call regarding AIM returns.
These works much like your GST returns – every 2 months, we calculate your year-to-date profit and how much tax is due for that period. You then pay tax every 2 months, rather than on the standard provisional tax dates. This means that if you have a big month, you pay your tax at the time, and then when you have a quiet month (say December/January), you will have less tax to pay.
This option is extremely valuable for businesses who have ‘lumpy’ income streams, or for those who are growing.
NZ Economic Outlook for 2026
Trading was challenging in 2025. But the economic outlook for New Zealand small businesses does look brighter as we head towards the new year and 2026.
Reviews and Referrals
As a small business we value client referrals. In fact, most of our new business comes via either referral or online searches.
If you would consider either referring us to friends and family, or leaving us a google review, we would be very grateful.