Here's a truth most owners learn the hard way: by the time you sit down to file in April, the year is over and your options are mostly gone. Real tax planning happens before December 31. Here are moves worth reviewing each fall.
Time Your Income and Expenses
If you're on the cash method, you may be able to defer income into next year or accelerate expenses into this one (or vice versa, depending on your situation) to smooth your tax bill. Small timing shifts can matter.
Make Planned Purchases Before Year-End
Need equipment or technology anyway? Buying and placing it in service before December 31 may let you deduct it this year. Don't buy things you don't need for a deduction — but time things you do need.
Fund Retirement Accounts
Contributing to a SEP-IRA, Solo 401(k), or similar can lower your taxable income while building your own savings — one of the best deductions available to business owners.
Review Your Entity and Estimated Taxes
Year-end is the moment to ask whether an S-corp election would help next year, and to true up your estimated taxes so you're not hit with a penalty or a surprise bill.
Clean Up Your Books
Getting your books in order before year-end makes filing cheaper and surfaces deductions while you can still act on them.
Plan Before the Clock Runs Out
A short year-end planning session often pays for itself many times over. Li CPA Group works with NYC owners each fall to cut next April's bill before it's locked in.