End of Financial Year Inventory Checklist NZ: Key Tasks to Complete

As the end of financial year (EOFY) approaches in NZ, it’s an important time to review your inventory management system and make sure everything is accurate, complete, and aligned with your accounting system prior to running your end of year financials.

A clean set of data not only makes things easier for your accountant, it also gives you confidence in your reporting going into the new financial year.

Here are some key tasks we recommend reviewing:

Reconcile to Xero

A reconciliation needs to be completed between your stock system and Xero.

• A reconiliation needs to be completed between your inventory system stock on hand and related accounts in Xero

• Review accounts receivable and payable

• Investigate and resolve any discrepancies

This step is critical for clean year-end reporting.

Note: Xero and your stock system may not align at 31 March due to some of these reasons:

• Transactions coded to your stock on hand account that have not been entered through your inventory system

• Date variations between receipt date and invoice date for your purchases

• Editing or deleting of transactions in Xero after they have been received from your stock system

Review Stock on Hand (SOH)

Your inventory figures should reflect reality as closely as possible.

• Review your total stock on hand balance

• Investigate any unusual variances

• Identify products with zero value but non-zero quantity, and update if required

Zero value lines can skew reporting on cost of goods sold (COGS) and stock on hand figures.

Update Sales and Purchases

Make sure all transactions for the year have been completed.

• Process or deleted any outstanding sales orders and purchase orders as required

• Ensure all supplier invoices have been entered

Incomplete transactions can impact both inventory levels and financial results.

Review User Access and Permissions

Take a moment to check who has access to your system.

• Remove users who no longer need access

• Confirm roles and permissions are appropriate

This helps maintain data integrity, security, and accountability, and reduces the risk of errors.

Review Adjustments

Stock adjustments should be finalised and clearly understood.

• Check for open or incomplete adjustments

• Review large or frequent adjustments

This ensures your inventory valuation is reliable at year end.

Resolve Failed Exports or Sync Errors

If your inventory system integrates with Xero, this step is critical.

• Review any failed exports or sync errors

• Identify the cause (e.g. missing data, locked periods)

• Re-export once resolved

Unresolved errors can create gaps between your inventory system and accounting records.

Review Draft Invoices and Bills in Xero

Draft transactions can easily be overlooked.

• Review all draft invoices and bills

• Approve, amend, or delete as needed

• Ensure transactions are posted to the correct financial period

This ensures your financials are complete and accurate before year-end close.

Need a hand?

EOFY doesn’t need to be overwhelming. A structured review like this can make a big difference in the accuracy of your data and the quality of your reporting.

If you’re unsure where to start or you’d like support reviewing your inventory system, Xero setup, or integrations, please reach out.