The decisions you make in November and December can significantly impact your tax bill for the year. Here's a practical checklist of moves to consider before the calendar turns.
Income & Expense Timing
- Defer income: If possible, delay invoicing until January so income falls into the next tax year
- Accelerate expenses: Prepay rent, insurance, or supplies before December 31
- Purchase equipment: Section 179 deduction allows immediate expensing of qualifying equipment and software purchased and placed in service before year-end
Retirement Contributions
- Max out SEP-IRA contributions (deadline is your tax filing deadline, but contribute now if cash allows)
- Maximize Solo 401(k) employee contributions by December 31
- Review Roth conversion opportunities if income is lower than expected
Payroll & Compensation
- Review your S-Corp salary — is it reasonable and documented?
- Consider bonus payments to employees before year-end
- Process final payroll and verify all tax deposits are current
Recordkeeping
- Gather receipts for all business expenses, especially meals, travel, and entertainment
- Reconcile all bank and credit card accounts through November
- Review accounts receivable — write off uncollectible amounts
- Verify W-9s are on file for all contractors you've paid $600 or more
Charitable Giving
- Make charitable contributions through your business or personally before December 31
- Consider donating appreciated stock to avoid capital gains
- Document all donations with receipts and acknowledgment letters
Start Now
Year-end tax planning works best when you start in October or November. If you're reading this in December, you still have time — but don't wait. Schedule a call with your CPA to review your specific situation and identify the strategies that make the most sense for your business.