Year-End Tax Moves For Small Businesses

Simple steps to reduce your bill before December 31

The calendar’s final lap is where small businesses can pick up real, legal savings—without heroic effort. Think of this as your tidy, end-of-year checklist to protect profit before the clock strikes midnight.

1. Make your books tell the truth

Accurate books unlock deductions. Reconcile accounts, match invoices, and clean up expense categories so every legitimate write-off is visible. If you’re behind, catch-up bookkeeping and monthly reconciliations prevent April “surprises” and set you up for smarter planning next year.2. Convert traffic into leads

2. Use an accountable plan (and document it)

If you’re an owner-operator, adopt an accountable plan to reimburse business expenses paid personally (think mileage, home office, phone). Done right—and documented—it’s deductible to the business and non-taxable to you. It’s a core piece of audit-ready planning we build into small-business tax advisory.

3. Check your entity and compensation

S-Corp owners: review “reasonable compensation.” Paying yourself correctly can preserve QBI benefits and avoid payroll pitfalls. If you’re still a sole prop but your profit level argues for S-Corp treatment, map that change now so you start January with the right structure. This is standard fare in our entity-choice planning.

4. Time income and expenses (legally)

If cash flow allows, consider deferring late-December invoices into January and accelerating necessary, ordinary business expenses into December. Stock up on supplies you’ll use soon, schedule maintenance, or prepay eligible costs. Always pair timing moves with documentation and a clear business purpose.

5. Invest where it pays back

Review Section 179/bonus rules for equipment and software you actually need. Don’t buy to get a deduction—buy because it improves operations. Also scan for R&D-style credits if you’ve been improving products or processes (yes, even service firms test and iterate).

6. Max retirement contributions

Stack the right plan—Solo 401(k), SEP, or SIMPLE—to shelter profit and build personal wealth. If a plan needs to be established this year, set paperwork before the deadline and coordinate your final payroll or owner draws accordingly. Our advisory clients map contributions alongside quarterly cash flow so nothing pinches in Q1.

7. Close open loops before January

• Collect W-9s from contractors so 1099s aren’t a fire drill.

• Review sales-tax filings and payroll deposits for any gaps.

• Identify bad debts and obsolete inventory for year-end write-offs.

• Confirm estimated tax payments so you meet safe-harbor thresholds.

8. Don't forget IRS letters - or the ones you're avoiding

If you’ve received notices or have unfiled returns, act now. Filing past-due returns and setting a sustainable resolution plan (installment agreement, penalty relief, etc.) can stop the clock on penalties and interest—and clear the runway for 2026.

Want a quick, practical game plan?

We offer a focused, small-business year-end review: entity choice, accountable plan setup, deduction review, and a simple quarterly rhythm for 2026. Start with a free 15-minute consultation—phone or Zoom—and we’ll route you to Advisory, Preparation, or Resolution as needed.

Book your free consult to fix what’s past, file what’s due, and protect next year’s profit—with plain-English guidance from a local Winston-Salem team.