Tax season doesn’t start the day the calendar flips — smart business owners prepare year-round. Whether you run a construction crew, a retail shop, or a service business, taking a few focused steps now can reduce your tax bill, simplify your filings, and make audits far less stressful. Here are practical, actionable tax moves you can make before year-end to protect your business and maximize your opportunities.
1. Reconcile and Clean Up Your Books Monthly
Accurate books are the foundation of any tax strategy. If transactions are missing, misclassified, or unreconciled, your tax filing becomes guesswork. Schedule a monthly reconciliation of bank and credit card accounts, correct any incorrect transactions, and make sure income and expenses are categorized consistently. If you’re behind, prioritize catching up now — a clean ledger saves you time and money later.
Quick checklist:
- Match all bank and credit card transactions.
- Identify and correct duplicate or personal expenses.
- Ensure income deposits match invoices.
2. Review Depreciation & Asset Purchases
If you’ve added equipment, vehicles, or tools this year, confirm how you’ll handle depreciation. Section 179 and bonus depreciation rules can produce substantial upfront tax benefits for qualifying business property. But the best choice depends on your cashflow and long-term plans — sometimes spreading depreciation over several years is preferable.
Action step: Create an asset list with purchase dates and costs, then discuss depreciation options during your consultation.
3. Maximize Retirement Contributions
Retirement plans are a powerful tool for tax savings and employee retention. If you’re eligible for a SEP IRA, Solo 401(k), or SIMPLE IRA, contributing to these accounts before year-end can reduce taxable income while building long-term wealth.
Note: Contribution deadlines vary by plan; check dates and consider making employer contributions if applicable.
4. Accelerate Deductions — Or Defer Income
Two basic levers for tax planning are timing deductions and timing income. If you expect higher income next year, you might accelerate deductible expenses into the current tax year (supplies, repairs, or prepaying certain bills). Conversely, if this year was unusually strong, deferring income into the next year may lower your current tax bracket. Consider which approach fits your cashflow and business goals.
5. Check Payroll and Contractor Reporting
Payroll errors and misclassified contractors are frequent audit triggers. Confirm your payroll tax deposits are up to date, employee withholdings are correct, and 1099-NEC forms are prepared for qualifying independent contractors. If you use subcontractors frequently (common in construction), make sure you have W-9s on file and track payments accurately.
6. Review Sales Tax Compliance
If you sell taxable goods or services, verify your sales tax filings and nexus obligations. Sales tax rules can change based on where you have customers or perform services — an important consideration if you serve clients across state lines.
7. Keep an Audit-Ready File
“Audit-ready” doesn’t mean over-prepared; it means organized. Keep digital copies of receipts, invoices, bank statements, and contracts organized by month and by category. Use cloud storage and name files consistently (e.g., “2025-05 VendorName_Invoice_1234.pdf”) to make retrieval simple.
Closing — Take 30 Minutes Now to Save Time Later
A short planning session today can prevent a scramble in spring. If you want a practical, prioritized list tailored to your situation — including depreciation choices, retirement contributions, payroll checks, and sales tax obligations — book a consultation. I’ll review your books, highlight the biggest opportunities, and give you a clear action plan for year-end.
Book a free consultation → [Book a Consultation]
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