All Articles
Tax Planning Year-End Checklist

Year-End Tax Prep Checklist for Small Business Owners

Karl Geldmeister March 11, 2026

By the time January rolls around, most tax-saving opportunities are already gone. The window to act is December — sometimes earlier. Here's your year-end checklist.

Income & Deductions

  • ✅ Review your P&L for the year and project your taxable income

  • ✅ Accelerate deductible expenses into this year if you expect a lower bracket next year

  • ✅ Defer invoicing (if on cash basis) to push income into January if this year's income is unusually high

  • ✅ Max out your SEP-IRA, Solo 401(k), or SIMPLE IRA contributions

Equipment & Depreciation

  • ✅ Consider Section 179 expensing for equipment placed in service before Dec 31

  • ✅ Review bonus depreciation eligibility for larger purchases

  • ✅ Confirm all new assets are properly recorded in your fixed asset register

Payroll & Contractors

  • ✅ Verify W-9s are on file for every contractor paid $600 or more

  • ✅ Confirm payroll tax deposits are current and reconciled

  • ✅ Prepare to issue 1099-NECs by January 31

Records & Reconciliation

  • ✅ Reconcile all bank and credit card accounts through December 31

  • ✅ Reconcile your balance sheet accounts (loans, owner draws, retained earnings)

  • ✅ Back up your accounting data

  • ✅ Organize receipts for meals, travel, and home office

Entity-Specific Items

  • ✅ S-Corp owners: ensure your reasonable compensation is documented

  • ✅ LLC owners: review whether an S-Corp election would reduce SE tax

  • ✅ Review your business structure annually — circumstances change

Want a professional set of eyes on your year-end position? We offer tax planning consultations for small business owners through December. Schedule a call today.