(aim) accounting income method : ADVANTAGES and DISADVANTAGES

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Advantages

• It is beneficial for those who earn their income at the end of the tax year. Because provisional tax is paid at the same time as you earn your income, no tax to pay until you make the profit. 
• If all tax payments are made in full and on time no interest would be charged by the IRD if the payments are less than the actual tax liability. Any shortfall will be due at your terminal tax date.
• Because Statements of Activity are filed more frequently any overpaid tax can be refunded sooner. You don't need to wait until the end of the income year. ​

Disadvantages

• It won’t suit those who earn their income at the beginning of the year as it means paying more tax upfront than if using other methods.
• There is no IRD credit interest if you overpay tax for the year.

• Frequent tax payments up to six times a year (or 12 times if you file GST returns monthly) compared to three times under the standard uplift or estimation methods.
• Increased frequency of filing Statements of Activity will lead to greater compliance costs.
• You will pay tax based on accounting profit. Your current cashflow position may not be reflected.
• Taxpayers may open themselves up to shortfall penalties if there is a lack of understanding or care when entering data into their accounting software as AIM is highly reliant on this information. 
• AIM cannot be used by partnerships or trusts .
• If you opt in you will not be able opt out of AIM until the start of a new income year.
• If you fail to meet you obligations under AIM, you will have to use the estimation method for the remainder of the year. IRD will treat you as if you were an estimation taxpayer from the beginning of the year and interest will be charged on any underpaid tax.
• If payments are not made in full and on time the IRD will charge interest and penalties on the outstanding amounts. You cannot use tax pooling companies  to help reduce these penalties under the AIM system. 

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To conclude, AIM may suit some businesses however for most it is likely to increase time spent and compliance costs for very limited benefits. You should to speak with your accountant to see if this method suits your situation.