Year-End Prep: 5 Tax Moves Small Businesses Need to Make Before December 31st

Let's be honest, you're probably feeling that familiar year-end crunch right about now. Between holiday planning, wrapping up client projects, and trying to squeeze in some family time, tax planning might be the last thing on your mind. But here's the thing: those final weeks of December can make or break your tax situation for the entire year.

If you haven't tackled your year-end tax planning yet, don't panic. You're not alone, and there's still time to make moves that could save you thousands. We're here to walk you through five critical tax strategies that every small business owner should consider before the clock strikes midnight on December 31st.

And if you're feeling overwhelmed by all this? We get it. That's exactly why JOLT Strategies offers a complimentary tax review to help you identify opportunities you might be missing. Sometimes you just need a fresh pair of eyes to spot the savings hiding in plain sight.

Move #1: Schedule That Tax Meeting (Like, Right Now)

We know, we know: your tax preparer is probably swamped, and you've been putting this off. But this is your most important move, and here's why; your tax professional has insights that could literally pay for themselves within the first five minutes of your conversation.

When you finally get that meeting on the calendar, come prepared. Bring your current financial statements, profit and loss reports, and any major purchases or changes you've made this year. Your tax preparer needs to see the full picture to estimate your tax liability and suggest specific actions you can take before year-end.

This isn't just about compliance: it's about strategy. A good tax advisor will help you understand exactly where you stand and what moves make sense for your specific situation. They might suggest accelerating expenses, deferring income, or making strategic purchases that you hadn't even considered.

Don't have a tax preparer you trust? That's a problem we can help solve, but for now, focus on getting professional guidance before it's too late to act on their recommendations.

Move #2: Accelerate Those Business Expenses

This is where you can get creative and potentially save big. The strategy is simple: if you're planning to make business purchases in early 2026, see if it makes sense to move those purchases into 2025 instead.

Think about what your business needs: new equipment, technology upgrades, office furniture, marketing materials, or professional development. If these purchases are already in your budget, accelerating them into 2025 gives you immediate tax deductions.

You can also prepay certain expenses like:

• Insurance premiums for 2026

• Professional subscriptions and memberships

• Annual software licenses

• Maintenance contracts

But here's the key: don't make purchases just for the tax benefit. These should be legitimate business needs that make sense for your cash flow and operations. Smart tax planning never involves spending money you don't have or buying things you don't need.

Move #3: Take Advantage of Bonus Depreciation and Section 179

This is where things get exciting, especially for 2025. Congress has made some significant changes that could put serious money back in your pocket.

First, the 100% First-Year Bonus Depreciation has been permanently restored for eligible assets acquired after January 19, 2025. This means you can deduct the entire cost of qualifying business property and equipment in the year you place it in service, rather than spreading that deduction over several years.

Second, the Section 179 expensing limit has jumped to $2.5 million for 2025, with a phase-out threshold of $4 million. This allows small businesses to immediately expense eligible purchases rather than depreciating them over time.

What qualifies? Business equipment, machinery, vehicles, computers, software, and even some building improvements. If you've been considering that equipment purchase or technology upgrade, these expanded limits could make it much more attractive from a tax perspective.

The beauty of these deductions is that they reduce your taxable income dollar-for-dollar. If you're in a 25% tax bracket and you make a $10,000 qualifying purchase, you could save $2,500 in taxes.

Move #4: Max Out Your Retirement Contributions

Here's a move that accomplishes two goals at once: reducing your current tax burden while building your future financial security. Pre-tax contributions to qualified retirement plans reduce your taxable income dollar-for-dollar, which means immediate tax savings.

For 2025, the contribution limits are generous. You can contribute up to $70,000 to a SEP IRA or Solo 401(k), depending on your income and business structure. Even smaller contributions can make a meaningful difference; every dollar you contribute is a dollar less of taxable income.

If you don't have a retirement plan set up yet, don't despair. Some plans can be established and funded before December 31st, though others require setup earlier in the year. This is another great topic to discuss with your tax preparer during that meeting we mentioned in Move #1.

The retirement contribution strategy is particularly powerful because it's one of the few tax moves that genuinely benefits you in multiple ways. You're not just saving on taxes: you're actually building wealth for your future self.

Move #5: Get Your Financial House in Order

This might not sound as exciting as the other moves, but trust us; future you will thank present you for tackling this now. Clean, organized financial records make everything else easier, from tax preparation to business decision-making.

Start by gathering and reviewing all your key documents:

• Income records and invoices

• Expense receipts and documentation

• Bank and credit card statements

• Previous tax returns

• Any notices from the IRS or state agencies

Next, make sure you're prepared for year-end paperwork. If you have contractors, verify that their contact information is current and accurate: you'll need it for 1099s. If you have employees, ensure their information is up to date for W-2s.

Finally, take a look at your estimated tax payments for the year. If you're behind, you might be able to make a catch-up payment before year-end to avoid penalties. If you're ahead, you can plan accordingly for next year.

The Deadlines That Matter

December 31st is the big one, but it's not the only date on your calendar. Some retirement plan contributions can be made as late as your tax filing deadline (including extensions). Estimated tax payments for Q4 are due January 15th, 2026.

The key is understanding which moves must happen before the ball drops and which ones have a little wiggle room. This is yet another reason why that tax meeting is so crucial; they'll help you prioritize based on your specific situation and timeline.

Don't Go It Alone

Look, we get it. Tax planning can feel overwhelming, especially when you're already juggling a million other responsibilities as a business owner. You didn't start your business to become a tax expert: you started it because you're passionate about what you do and great at serving your customers.

That's where we come in. These five moves are just the beginning of what's possible with strategic tax planning. The real magic happens when you have a trusted advisor who understands your business, your goals, and your unique situation.

If you're feeling uncertain about any of these strategies, or if you want to make sure you're not missing other opportunities, we're here to help. Our complimentary tax review is designed to give you clarity and confidence about your year-end tax planning. We'll look at your specific situation and help you identify the moves that make the most sense for your business.

Remember, good tax planning isn't about complicated schemes or risky strategies. It's about understanding the rules, making smart decisions, and taking action before opportunities expire. You've got this, and you're not alone in figuring it out.

The clock is ticking on 2025, but there's still time to make these moves count. Whether you tackle them solo or partner with professionals who can guide the way, the important thing is taking action. Your future self: and your bank account (will be grateful you did.)