Q4 Tax Prep Checklist: Year-End Moves Every Small Business Should Make

For small business owners, Q4 is crunch time. It’s not just about hitting revenue goals—it’s also about preparing for year-end taxes. Waiting until January often leads to missed opportunities, unnecessary stress, and even bigger tax bills. The smartest move? Start your tax prep now.

Here’s a checklist of key actions every small business should take before the year closes:

1. Review Your Financials for Accuracy

Before anything else, make sure your books are clean and up to date. Inaccurate or incomplete records create headaches during tax filing and may cause you to miss deductions. Work with your accountant to reconcile accounts and verify that everything matches up.

2. Maximize Deductions Before December 31

If you’ve been putting off expenses like equipment upgrades, software, or professional services, Q4 is the time to act. Accelerating these purchases means you can take the deductions this tax year instead of waiting until next year.

3. Check Your Estimated Tax Payments

Falling behind on estimated taxes can result in penalties. Review your payments so far and work with your accountant to see if a final adjustment is needed before the year ends.

4. Evaluate Retirement Plan Contributions

Contributing to retirement plans like a SEP IRA or 401(k) not only benefits your future but can also lower taxable income today. Q4 is your last chance to make contributions that count for the current tax year.

5. Revisit Your Payroll and Contractor Payments

Make sure all W-2 and 1099 information is correct and ready for distribution in January. Catching errors now will save time and avoid last-minute corrections when deadlines hit.

6. Look Into Year-End Tax Credits

Explore available credits, such as the R&D tax credit, energy-efficient investment incentives, or credits for providing employee benefits. These can significantly reduce your tax liability if claimed properly.

7. Schedule a Year-End Tax Strategy Session

Don’t go into Q4 blind. Sit down with your tax advisor before year-end to run projections and identify opportunities to save. Proactive planning ensures you’re not surprised by your final tax bill.

The Payoff of Early Prep

Taking action in Q4 sets you up for a smoother tax season. Instead of scrambling in January, you’ll walk into the new year with clarity, confidence, and a strategy that protects your business from unnecessary costs.

Need expert guidance? Decimal can help you organize your books, optimize deductions, and plan smarter before the year ends. Connect with a Decimal professional today!