Day 3 : Is Your Business Ready for a Year-End Tax Planning Session?
With just over three months left in 2025, now is the perfect time to schedule a year-end tax planning session with your accountant. This proactive approach can save you thousands of dollars and set your business up for success in 2026.
What Makes a Business "Ready"?
Before meeting with your accountant, gather these essential documents:
Current profit and loss statements
Balance sheets
Cash flow statements
Records of major purchases or investments
Documentation of any business structure changes
Information about anticipated Q4 income and expenses
Key Areas to Discuss
Income Timing Can you defer income to 2026 or accelerate it into 2025? The answer depends on your current tax bracket and expectations for next year.
Expense Acceleration Consider making purchases or payments before year-end to maximize current-year deductions:
Equipment purchases (Section 179 deduction)
Professional development and training
Marketing and advertising expenses
Office supplies and equipment
Retirement Contributions Maximize contributions to:
SEP-IRAs
Solo 401(k)s
Simple IRAs
Traditional profit-sharing plans
Tax Credit Opportunities Don't miss out on valuable credits:
Research and Development Credit
Work Opportunity Tax Credit
Small Business Health Care Tax Credit
Energy efficiency improvements
Entity Structure Review
Is your current business structure still optimal? Consider:
Converting from sole proprietorship to LLC or corporation
S-Corp election for tax savings on self-employment tax
Changes in ownership or partnership agreements
Documentation and Compliance
Ensure you have proper documentation for:
Business meals and entertainment
Travel expenses
Home office deductions
Vehicle usage
Equipment depreciation
The Cost of Waiting
Delaying this conversation until December limits your options. Many tax strategies require implementation before year-end, and some require advance planning or specific timing.
Next Steps
Schedule your appointment now
Gather your financial documents
Prepare a list of questions and concerns
Be ready to discuss your 2026 business plans
Remember, tax planning is year-round activity, not a December panic. Invest the time now to maximize your savings and minimize your stress.