Questions to ask Before you Finalize Your Tax Strategy

Nov 06 2026 16:42

Have You Maximized Retirement Contributions?

Retirement plans can be one of the most effective ways for business owners to reduce taxable income. Depending on your business structure and retirement plan, you may still have opportunities to maximize contributions to plans such as a SEP IRA, SIMPLE IRA, traditional 401(k), or other retirement plans.

Have All Payroll Items Been Recorded?

Payroll becomes especially important at year-end. Confirm that bonuses, commissions, retirement contributions, health benefits, taxable fringe benefits, and reimbursements have all been processed correctly. Proper payroll reporting helps avoid amended payroll tax returns, penalties, and unnecessary headaches after year-end.

Should You Adjust the Timing of Income and Expenses?

Year-end planning isn't always about reducing this year's taxes. Sometimes it makes sense to shift income or deductions between tax years based on your projected income and anticipated tax rates. If you expect substantially higher income next year, accelerating deductions into the current year may be beneficial.

Is Your Business Entity Still the Best Fit?

Your business may have changed considerably since it was formed. Increased profits, additional employees, or new business activities could make another entity structure more advantageous. There may be opportunities to improve tax efficiency through your business structure.

Are Your Records Ready forTax Season?

Taking time now to organize your financial records can make tax season much less stressful. Confirm that you've retained documentation for income, expenses, payroll, loan statements, asset purchases, charitable contributions, and other significant transactions.