M.S. Febrey CPA

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10 Year-End Tax Planning Tips: Essential Steps for Business Owners

Michael Febrey

Tax season can be stressful for business owners, but with the proper preparation, you can minimize your tax liability and keep more of your hard-earned money. 

Whether maximizing deductions or planning employee bonuses, the key is to act now before year-end. 

Here are ten year-end tax planning steps to ensure your business is ready for tax season. Download our handy infographic to help you plan. 

  1. Review Your Expenses: Take a close look at your expenses. Have you captured everything? Missing even small ones can add up at tax time. 

  2. Maximize Your Deductions: Don’t leave money on the table! From office supplies to home office deductions, ensure you claim everything you’re eligible for. 

  3. Take Advantage of Section 179: Planning to buy equipment? Consider doing it before year-end to take advantage of Section 179, which allows you to deduct the total purchase price. 

  4. Contribute to Retirement Accounts: Contributions to retirement accounts like a SEP IRA can lower your taxable income. This is a win-win situation for you and your business. 

  5. Check Your Estimated Tax Payments: If your income has increased, double-check that your estimated tax payments are current. It’s better to adjust now than face penalties later. 

  6. Defer Income Where Possible: If you expect a big payment at year-end, consider deferring it to next year to reduce your taxable income. 

  7. Plan for Employee Bonuses: Giving bonuses? Remember, they’re tax-deductible, but you’ll need to plan for the payroll taxes. 

  8. Write Off Bad Debts: If you have customers who aren’t going to pay, now’s the time to write off those bad debts. This can lower your taxable income for the year. 

  9. Review Your Financial Statements: Year-end is the perfect time to review your financials and see how your business performs. 

  10. Schedule a Year-End Tax Planning Session: Don’t wait until tax season to prepare—schedule a tax planning session now to ensure you’re in the best possible position for filing. 

Act now! 

Contact our team to ensure your small business is ready for tax season. We’ll make the process smooth and stress-free. Not sure where to start? We can help!