As the year draws to a close, small business owners are busy with holiday preparations, year-end reports, and strategizing for the new year. But amidst the hustle and bustle, don’t forget about taxes! Taking the time now to review your finances and implement some strategic tax planning can save you a significant amount of money come tax time. Here are some end-of-year tax tips for small business owners.

End-of-Year Tax Tips

Review your income and expenses:

  • Gather all your financial documents: For instance, these documents can include invoices, receipts, bank statements, and credit card statements.
  • Categorize your expenses: This will help you identify areas where you can save money next year.
  • Look for potential deductions: Many deductions are available to small businesses, so ensure you are taking advantage of them.
  • Compare your income and expenses to your budget: This step will help you determine if you are on track to meeting your financial goals.

Maximize your deductions and credits:

  • Contribute to a retirement plan: You can deduct contributions to a SEP IRA or Solo 401(k) plan.
  • Prepay your business expenses: You can deduct prepayments for next year’s expenses.
  • Purchase qualified business equipment: You can deduct the total cost of qualified business equipment purchased and placed in service before December 31st under Section 179.
  • Claim the home office deduction: If you use a portion of your home exclusively for business purposes, you may be able to deduct a portion of your home office expenses.

Defer income and accelerate deductions:

  • Consider postponing the invoicing of clients until the new year.
  • Prepay any business expenses that you can.
  • Make estimated tax payments to avoid penalties.

Organize your records:

  • Keep all of your financial records in a safe place.
  • Use accounting software or apps to keep track of your finances.
  • Back up your records regularly.

Seek professional help:

  • Consult with a certified public accountant (CPA): A CPA can help you understand the tax laws and ensure you take advantage of all the deductions and credits available.

Additional tips:

  • Stay up-to-date on the latest tax law changes: The tax laws are constantly changing, so it is crucial to stay up-to-date on the latest changes.
  • File your taxes on time: File your federal and state income tax returns on time to avoid penalties.
  • Make estimated tax payments: If you expect to owe more than \$1,000 in taxes, you must make estimated tax payments throughout the year.


By following these end-of-year tax tips, small business owners can save themselves time, money, and stress. Remember, tax planning is an ongoing process, so it’s essential to consult with a professional throughout the year to ensure you are taking advantage of all available deductions and credits.

FSL Tax and Accounting Services is here to help you with all your tax needs. Don’t hesitate to contact our firm if you have any questions or need year-end tax planning assistance. Call 678-702-7218 for a free consultation or complete the online form. Investing in a CPA ensures you meet all of your tax obligations.