Once the year closes, a tax return is mostly a report on history. The planning window is right now, while there's still time to change the outcome. Here's what I walk business clients through every fall in Fountain City.
1. Get your books current through September
You can't plan from a guess. If your bookkeeping is behind, catch up through the last full quarter first. Then we're working from your real profit, not what it felt like.
2. Compare what you've paid with what you'll owe
Add up the estimated tax payments you've sent the IRS this year and hold them up against what your profit says you'll owe. The fourth-quarter payment for 2026 is due January 15, 2027. If you're short, it's much better to find out in October than in April.
3. Time the purchases you were already planning
If the business needs a computer, equipment, software or a vehicle, buying it and putting it to use before December 31 can move the deduction into 2026. The key words are "the business needs." A purchase you didn't need is still money out the door, even with a deduction attached.
4. Look at retirement contributions
SEP IRAs and Solo 401(k)s let self-employed owners save for retirement and lower taxable income. Each plan has its own setup and contribution deadlines, and some steps have to happen before the year ends. Ask in the fall so you still have every option.
5. If you're an S corporation, check payroll
S corporation owners who work in the business need reasonable wages paid through payroll. Year-end is when we make sure payroll, W-2s and owner distributions line up before they're locked in.
6. Collect contractor info now
Get a W-9 from every contractor you paid this year now, not the last week of January. For payments made in 2026, the 1099-NEC reporting threshold goes up to $2,000, so check who actually needs a form. 1099s go out at the end of January.
7. Separate business and personal money
Still running business purchases through your personal card? Open a business checking account before January 1. Your 2027 records will be cleaner, and they'll be easier to defend if the IRS ever asks.
What not to do
- Don't buy things just for the write-off.
- Don't wait until April to rebuild your mileage. Start a log today.
- Don't skip the January estimated payment because money is tight. Talk to us about a plan instead.
Every business is different, so treat these as starting points, not advice for your specific return. A year-end planning session is where we run your actual numbers.