Year-End Tax Planning for Small Business Owners: Make Every Dollar Work Smarter

Chosen theme: Year-End Tax Planning for Small Business Owners. As the calendar closes, thoughtful steps can trim taxes, strengthen cash flow, and set you up for a confident new year. Stay with us, share your questions, and subscribe for practical checklists tailored to your business.

Why Year-End Tax Planning Matters Now

When you plan before year-end, you control timing, documentation, and eligibility for deductions and credits. Reactive filing often means missed opportunities. Tell us one area you want to master—expenses, payroll, or credits—and we’ll point you to targeted strategies.

Why Year-End Tax Planning Matters Now

A Maryland shop owner accelerated equipment purchases, set up a Solo 401(k), and paid a December bonus. The moves cut taxable income and improved morale. Share your industry below, and we’ll suggest a sector-specific tactic you can still implement this year.

Why Year-End Tax Planning Matters Now

Mark key dates: finalize books, verify W-9s for contractors, lock in retirement contributions, and run a payroll withholding true-up. Post your checklist progress in the comments so others can learn from your momentum and celebrate your wins alongside you.

Entity and Compensation Moves Before December 31

If you operate as an S corporation, verify your reasonable salary versus distributions. Adjusting December payroll can balance compensation with payroll taxes and distributions. Share your approach, and we’ll discuss safe, documented rationale for your industry baseline.

Entity and Compensation Moves Before December 31

Entity type affects self-employment tax, retirement plan options, and fringe benefits. If you’re considering a future S election, gather books now and discuss timing with a professional. Comment with your current structure to get a quick decision checklist.

Deductions, Depreciation, and Smart Expense Timing

Equipment may qualify for accelerated write-offs when placed in service before year-end. Run projections to avoid creating losses you cannot use efficiently. Comment with the asset you’re considering, and we’ll flag documentation and delivery timing you should confirm.

Deductions, Depreciation, and Smart Expense Timing

Certain prepaid expenses can be deductible if they meet the 12-month rule and economic performance tests. Focus on insurance, software, and rent. Tell us which bills you can prepay, and we’ll help evaluate compliance and cash flow impacts together.

Income Management and Method Choices

Deferring income without damaging relationships

Consider invoicing late-December jobs in January if cash flow allows, or offering January delivery for optional add-ons. Keep clients informed to maintain trust. Comment with your average payment cycle, and we’ll offer tailored scheduling suggestions today.

Cash versus accrual method considerations

Your accounting method affects when revenue and expenses hit. Some method changes require planning or Form 3115. If your growth has outpaced your method, say so below, and we’ll highlight potential benefits and pitfalls to investigate before year-end.

Choosing the right plan: SEP vs. Solo 401(k)

Solo 401(k) can allow higher owner contributions than a SEP for the same income, but setup deadlines matter. If you pay yourself on payroll, the window may still be open. Comment with your compensation mix for quick, actionable guidance.

Health accounts and tax efficiency

HSAs, QSEHRAs, and ICHRAs can deliver tax-advantaged benefits. Confirm plan documents and eligibility before contributions. Share whether you offer benefits today, and we’ll outline a starter approach that respects budget constraints and compliance requirements.

A founder’s win with planning

A designer set up a Solo 401(k) in December, then funded employee and employer portions strategically. The plan cut taxes and locked in savings momentum. Tell us your savings goal, and subscribe to receive our contribution deadline reminder sheet.

Tax Credits You Should Not Overlook

If you improve products, software, or processes, you might qualify—even without lab coats. Track time, materials, and testing notes. Describe a project you refined this year, and we’ll flag documentation habits that strengthen your credit position going forward.

Tax Credits You Should Not Overlook

Work Opportunity Tax Credit and local incentives reward strategic hiring. Gather Form 8850 screening timely. Post your hiring plans, and we’ll highlight deadlines and simple onboarding scripts that capture eligibility without disrupting candidate experience or team culture.

Tax Credits You Should Not Overlook

Partial credits may apply to commercial energy improvements, vehicles, or equipment. Keep receipts and certification statements. Tell us about upgrades you considered, and we’ll share a quick matrix of possibilities to explore with your advisor before December thirty-first.

Tax Credits You Should Not Overlook

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Compliance Sprint: 1099s, Books, and Audit Readiness

Chase missing W-9s now, not in January panic. Identify contractors paid $600 or more and verify details. Share how many you have, and we’ll provide a simple message template to request forms efficiently and respectfully from your valued partners.

Compliance Sprint: 1099s, Books, and Audit Readiness

Reconcile bank and credit accounts, verify loan balances, and tag unusual transactions. Consistency creates a defensible narrative. Comment with your accounting software, and we’ll post a platform-specific closing checklist to speed your monthly and annual wrap-up.

State, Local, and SALT-Cap Workarounds

Pass-through entity tax (PTET) elections

Some states allow PTET elections that shift taxes to the entity, bypassing the federal SALT cap for owners. Deadlines vary widely. Comment with your state, and we’ll flag decision windows and payment timing you should confirm immediately with your advisor.