Financial Reporting Services in New Zealand
Aurora Financials prepares accurate, compliant financial statements for New Zealand companies, charities, trusts and incorporated societies. Led by Jonathan Maharaj FCPA, our remote team understands the Financial Reporting Act 2013 and the XRB reporting tiers, so your annual financial statements are prepared correctly the first time, on time, every year.
What are financial reporting services in New Zealand?
Financial reporting services NZ cover the preparation of annual financial statements that summarise a company, charity, trust or incorporated society's financial performance and position for a reporting period. In New Zealand, the format and standard of these annual financial statements depend on the entity's reporting tier under the Financial Reporting Act 2013 and the External Reporting Board (XRB) accounting standards framework.
Most for profit small and medium businesses in New Zealand are not legally required to follow XRB standards and instead need financial statement preparation at a special purpose level, typically for the Inland Revenue Department, a bank or their own governance needs. Charities, larger companies, incorporated societies and entities with public accountability generally do have a statutory obligation to prepare general purpose financial reports under the XRB tiers. Aurora Financials handles financial statement preparation NZ wide for both types of report and helps you confirm which one your entity actually needs.
Annual financial statements NZ businesses can rely on
We prepare end of year financial reports and ongoing management reporting for businesses, charities, trusts and incorporated societies across New Zealand, matched to the reporting tier and standard that actually applies to your entity.
Annual Financial Statements NZ
Complete end of year financial statements, including the statement of financial position, statement of financial performance and supporting notes, prepared for filing and governance.
General Purpose Financial Reports (GPFR)
Financial statements prepared in line with the applicable XRB Tier 1 to Tier 4 standards for entities with a statutory reporting obligation, including charities and larger companies.
Special Purpose Financial Reports (SPFR)
Compliance level financial reports for SMEs and sole traders without a statutory GAAP obligation, prepared for IRD, lenders or your own management and governance needs.
Incorporated Societies Reporting
Incorporated societies financial reporting that meets the requirements of the Incorporated Societies Act 2022, prepared against the correct not for profit tier for your society's size.
Monthly and Management Accounts
Regular management accounts that give you a clear, current view of performance between annual reporting cycles, useful for governance, lenders and decision making.
Audit Ready Reporting
Financial statements prepared to a standard that supports a smooth audit where one is required, working alongside Aurora's audit and assurance team.
What are the XRB financial reporting tiers?
The External Reporting Board (XRB) sets four reporting tiers for New Zealand not for profit and public benefit entities, including charities and incorporated societies. The tier your entity falls into is based on total expenses or total operating payments, and determines which accounting standard you must apply.
These thresholds apply to financial years ending on or after 31 March 2024. For-profit entities follow a separate two tier structure based on whether they have public accountability, rather than the four tier not for profit structure below.
| Tier | Applies to | Standard |
|---|---|---|
| Tier 1 | Total expenses over $33 million, or the entity has public accountability | Full Not for Profit PBE Standards |
| Tier 2 | Total expenses $5 million to $33 million | PBE Standards, Reduced Disclosure Regime |
| Tier 3 | Total expenses $5 million or less, with operating payments over $140,000 | Tier 3 Not for Profit Standard |
| Tier 4 | Operating payments under $140,000 | Tier 4 Not for Profit Standard, cash basis |
Source: External Reporting Board (XRB), reporting tier thresholds for not for profit entities. Thresholds are based on an entity's group position where it controls other entities. This is general information only. Your entity's exact tier depends on its specific circumstances, and we recommend confirming this with us or another qualified adviser before relying on it.
Incorporated societies that register again under the Incorporated Societies Act 2022 generally apply the same not for profit tiers above. A society must also be audited if it is not a charity and has operating expenses of $3 million or more in each of the last two financial years. If your society needs an audit alongside its financial statements, our audit and assurance team can support both together.
General purpose vs special purpose financial reports NZ
Not every New Zealand business needs the same type of financial report. The right choice depends on whether your entity has a statutory reporting obligation under the Financial Reporting Act 2013, or simply needs financial statement preparation for compliance and decision making purposes.
| General purpose (GPFR) | Special purpose (SPFR) |
|---|---|
| Required by law for entities with a statutory reporting obligation | Prepared voluntarily, for IRD, a bank or internal use |
| Must follow the applicable XRB tier and accounting standard | Format is flexible and agreed with the user, such as a bank or shareholder |
| Common for charities, large companies and public accountability entities | Common for sole traders, small companies and SMEs without a statutory obligation |
Financial statements prepared by people who understand the standards
Aurora Financials is an award winning, remote first New Zealand firm founded by Jonathan Maharaj FCPA, with more than 20 years in New Zealand audit, accounting and compliance. As a member firm of PrimeGlobal and a CPA Australia Recognised Employer Partner, we know exactly which reporting tier and standard applies to your entity, and we prepare your statements accordingly.
Our advice is independent and free of conflicts. We are funded only by professional fees from clients, never by product commissions or third parties.
Built for the entities that actually need it
We prepare financial reports for companies, charities, trusts and incorporated societies across New Zealand, whether you have a statutory XRB obligation or simply need clear, reliable financial statements for your bank, shareholders or board.
Our fully remote model means the same dedicated team and senior oversight wherever your entity is based, with cloud accounting and secure document sharing replacing the need for a local office visit.
- Companies needing general purpose or special purpose financial reports
- Charities and incorporated societies reporting under the XRB not for profit tiers
- Trusts requiring annual financial statements for governance or compliance
- Businesses that need their financial statements ready ahead of an audit
- Transparent fixed fees, with no minimum client requirement
How to prepare financial reports the right way
If you are wondering how to prepare financial reports for your business, charity or society, the process below is how we approach it with every client, from confirming your reporting tier through to a finished set of financial statements.
Free consultation
We start with a no obligation conversation about your entity, your reporting obligations and your year end timeline. There is no charge for this.
Tier confirmation and proposal
We confirm which reporting tier and standard applies to your entity, then provide a clear, fixed fee proposal covering exactly what is included.
Preparation and filing support
We prepare your financial statements to the correct standard, ready for your board, shareholders, funders or, where required, your auditor.
Financial reporting NZ: frequently asked questions
What is financial reporting?
Financial reporting is the preparation of financial statements that show an entity's financial performance and position for a reporting period, such as a statement of financial performance and a statement of financial position. In New Zealand, the standard required depends on the entity's reporting tier under the Financial Reporting Act 2013.
What is the Financial Reporting Act 2013?
The Financial Reporting Act 2013 is the legislation that sets out which New Zealand entities must prepare general purpose financial reports, and gives the External Reporting Board the authority to issue the accounting standards those entities must follow. It also defines the size thresholds used to determine reporting obligations for some not for profit entities.
What are general purpose financial reports?
General purpose financial reports, or GPFR, are financial statements prepared under XRB accounting standards for entities with a statutory reporting obligation, such as charities, larger companies and entities with public accountability. The applicable XRB tier, from Tier 1 to Tier 4, sets the exact standard and disclosures required.
Do small businesses in New Zealand need to follow XRB standards?
Most for profit small and medium businesses in New Zealand have no statutory obligation to follow XRB standards. Instead, they typically prepare special purpose financial reports for the Inland Revenue Department, a bank or their own governance needs. This is general information only, not financial advice, and we recommend confirming your entity's exact position with us.
How do incorporated societies report financially under the Incorporated Societies Act 2022?
Incorporated societies generally apply the XRB not for profit reporting tiers, based on total expenses or operating payments, in the same way as charities. A society must also be audited if it is not a charity and has operating expenses of $3 million or more in each of the last two financial years.
What does a financial report example look like?
A typical financial report example includes a statement of financial position, a statement of financial performance, a statement of cash flows where required, and notes to the accounts explaining the figures. The exact format and level of detail in a financial report sample depends on whether your entity is preparing a general purpose or special purpose report and which XRB tier applies, so a sample built for a Tier 1 company will look different to one built for a small charity.
What is the difference between financial reporting and an audit?
Financial reporting is the preparation of the financial statements themselves. An audit is an independent examination of those statements by a qualified auditor, to provide assurance that they are free from material misstatement. Some entities need financial statements only, while others need both, and our audit and assurance team can support that combined need.
How much do financial reporting services cost in New Zealand?
Cost depends on your entity's size, reporting tier and complexity. We work on transparent fixed fees with no minimum client requirement, so you know the price upfront. The best starting point is a free consultation, where we confirm your reporting obligations and give you a clear quote. This is general information only, not financial advice.
Can a remote accountant prepare my financial statements?
Yes. Aurora Financials is a remote first firm, and we prepare financial statements for entities across New Zealand using cloud accounting, secure document sharing and video meetings. You receive the same dedicated team and senior oversight wherever your entity is based.
The content on aurorafinancials.com is intended for general informational purposes only and does not constitute financial, tax, legal, or professional advice. Aurora Financials accepts no liability for decisions made based solely on the content of this website.
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Jonathan Maharaj FCPA
Founder & Director · Aurora Financials
