How to Do Your Own Books in NZ (Without an Accountant)
You don't need to spend $2,000/year on an accountant to stay compliant. Here's how to do your own bookkeeping as a NZ sole trader or small business — properly.
What IRD actually requires
IRD doesn't care which software you use. They care that you can prove your income, expenses, and tax obligations. Specifically:
- Records of all income and expenses
- Supporting documents (invoices, receipts) for purchases over $50
- GST returns filed on time (if registered)
- Income tax return filed annually
- PAYE returns if you have employees
- Records kept for 7 years
Step 1: Separate your money
The single most important thing: get a separate bank account for your business.Mixing personal and business transactions is the #1 cause of bookkeeping headaches and audit issues.
Most NZ banks offer free or low-cost business accounts. ASB, ANZ, BNZ, Westpac, and Kiwibank all work well. If you're a contractor, Emerge (SBS Bank) is popular for its low fees.
Step 2: Choose your software
Spreadsheets work for the first year. After that, you'll want proper software. Your options:
Xero ($50–80/mo): Industry standard. Powerful but complex. Built for accountants, not business owners.
MYOB ($25–60/mo): Legacy software. Desktop roots. Getting better in the cloud but still feels dated.
Hnry (1% of income): Hands-off. They do everything. But it's expensive if you earn more than $3K/mo.
Ledger ($29/mo): AI does the bookkeeping. You approve. NZ-first. The modern option.
Step 3: Import your transactions
Download a CSV from your bank every month (or connect a live feed). Import into your accounting software. Each transaction needs to be "coded" — assigned to an account like "Telephone," "Motor Vehicle," or "Advertising."
With AI-powered software like Ledger, you code the first 30 manually. After that, the AI learns your patterns and codes the rest automatically with 85%+ accuracy.
Step 4: Understand your chart of accounts
Your chart of accounts is the list of categories for your transactions. The essentials for most NZ small businesses:
| Code | Name | What goes here |
|---|---|---|
| 1000 | Sales Revenue | All income from your business |
| 3100 | Bank Fees | Bank charges, Stripe fees, payment processing |
| 3200 | Computer & Software | SaaS subscriptions, hardware, domains |
| 3600 | Motor Vehicle | Fuel, WOF, rego, repairs (business portion only) |
| 3800 | Rent | Office rent, coworking, home office portion |
| 4000 | Telephone & Internet | Phone plans, broadband, mobile data |
| 4200 | Wages | Employee salaries and wages (not drawings) |
Step 5: File your GST
If you're GST-registered, file your return by the due date. Your accounting software should calculate it for you. File in myIR — it takes 5 minutes if your books are up to date.
See our complete GST guide for all the details including IRD due dates and common mistakes.
Step 6: End of financial year
Your financial year likely ends 31 March (most NZ businesses). At year end:
- Make sure all transactions are coded for the full year
- Generate your Profit & Loss statement and Balance Sheet
- Review for anything that looks wrong
- File your IR3 (sole trader) or IR4 (company) by 7 July (with a tax agent extension, this becomes March next year)
- Pay any income tax owed
When you DO need an accountant
DIY bookkeeping works for most sole traders and small businesses. But consider getting professional help if:
- You're turning over more than $500K
- You have complex ownership structures (trusts, partnerships)
- You're facing an IRD audit
- You have international income or expenses
- You're selling a business or buying property through a company
For everything else? Software + AI can handle it for $29/mo instead of $2,000+/year.