They’re matching your EFTPOS data to your bank account. Are your books up to scratch?
Most business owners think, “We’ll tidy up the records if IRD ever asks.”
But here’s the reality:
The IRD probably already has the data. And they’re matching it against your GST returns, line by line.
We were recently involved in an IRD risk review.
IRD had access to the client’s EFTPOS transaction data, not from the business, but directly from the payment provider.
They were comparing it against bank account deposits and GST returns.
The client didn’t even know this level of detail was available.
At first, we were perplexed.
The numbers didn’t match. The deposits looked low.
IRD was ready to question unreturned income and potentially raise an assessment.
But after digging deeper, we realised something surprising.
Part of their business model was acting as an ATM. They had an EFTPOS terminal available to the public for small cash-out transactions. Customers would swipe their cards and receive physical cash to spend at a market. These amounts were never sales; they were simply cash swaps (but they appeared as cash sales to IRD).
They charged a small fee, but the bulk of the funds were exempt.
It all stacked up. But it took clear evidence and explanation to satisfy IRD.
What should you do right now?
Don’t assume IRD will ask you first. They likely already have data.
Ensure your bank accounts reconcile to your returns, especially where you use cash floats or run unusual setups.
Document anything unconventional, like float accounts or third-party receipts.
Get ahead of grey areas before they become red flags.
“But we’re not hiding anything.”
That’s not the point. If your books look messy or don’t reconcile cleanly, IRD assumes risk, not good intent.
IRD now uses real-time data from banks, POS providers, and third-party merchants.
You may not realise what they can already see.
If something doesn’t line up, you’ll be explaining it after the fact.
If your accounts wouldn’t survive this level of scrutiny, don’t wait.
We help clients identify risk, clean up systems, and stay two steps ahead.
Let’s make sure your records tell the right story before someone else starts asking questions.
Contact Us
Contact us today to discuss on 07 827 9130 or email us. Our office is in Cambridge, NZ, but distance is no problem. We have many international and national clients.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
