Year-end tax planning isn’t just about checking a box. It’s about keeping more of your hard-earned money. If you’re running a business, the right tax moves before December 31 can mean thousands in savings and a smoother tax season ahead.
The question is: Are you making the most of your opportunities?
If you’re tired of scrambling in April, wondering if you missed deductions or could have lowered your tax bill, this guide is for you. Here are seven tax-smart strategies to put into action before the year closes. And if you want expert help, an Austin, Texas CPA can ensure you don’t leave money on the table.
1. Make Smart Business Purchases Now
Thinking about upgrading your office, investing in new equipment, or stocking up on supplies? Now’s the time to buy. Any business-related expenses made before December 31 can lower your taxable income.
What qualifies?
- Tech and software upgrades
- Office furniture and equipment
- Marketing and advertising expenses
- Business-related travel and client gifts
And here’s a bonus: Certain purchases may qualify for Section 179 depreciation, letting you deduct the full cost immediately. If you’re making a big purchase, let’s make sure you’re getting every tax break possible.
A small business CPA in Austin can help you decide what to buy and what to write off before year-end.
2. Set Up a Retirement Plan And Lower Your Tax Bill
No one regrets saving for retirement especially when it means paying less in taxes right now. If you don’t already have a retirement plan in place, setting one up before year-end can give you significant tax advantages.
Options for business owners:
- Solo 401(k): Great for high earners with no employees.
- SEP IRA: A flexible option for those who want to contribute a percentage of their income.
- SIMPLE IRA: Perfect for small businesses with employees.
The best part? Contributions reduce your taxable income, so you’re saving for the future and lowering your tax bill. If you’re unsure which plan fits best, a CPA in Austin, Texas can break it down for you.
3. Review Your Financials and Build a Tax Strategy for Next Year
Too many business owners wait until tax season to review their numbers only to realize they could have saved more with better planning. A mid-year checkup is great, but a year-end review is non-negotiable.
Here’s what you should be looking at:
- Have you hit your revenue and expense targets?
- Are your quarterly tax payments accurate, or will you owe more than expected?
- Is your business structure still the best for tax efficiency?
These aren’t questions to guess at. A tax advisor in Austin can help you take control of your finances before the new year starts.
4. Consider Charitable Donations for a Win-Win
Donating to charity isn’t just a good thing to do; it’s also a smart tax move. If you’ve had a strong revenue year, strategic giving can lower your taxable income and make a positive impact.
How to maximize your deduction:
- Donate cash, inventory, or even appreciated stocks (which can help you avoid capital gains taxes).
- Choose a 501(c)(3) nonprofit to ensure your donation qualifies.
- Keep detailed records because the IRS will
Not sure if your donation qualifies? A CPA firm in Austin, Texas can make sure your generosity pays off.
5. Use Depreciation Write-Offs to Your Advantage
If your business bought equipment, vehicles, or office furniture this year, you might qualify for accelerated depreciation. Instead of deducting small amounts over several years, you could deduct the full cost now under Section 179 or Bonus Depreciation.
Why does this matter? Because cash flow is king. Taking a full deduction now reduces your taxable income today—meaning more money stays in your business.
Not sure if your recent purchases qualify? An Austin accounting firm can help you get every deduction you deserve.
6. Take Advantage of Tax Credits (Not Just Deductions)
Tax deductions reduce your taxable income, but tax credits reduce the actual taxes you owe—dollar for dollar. And too many business owners overlook them.
Some of the most valuable tax credits for business owners include:
- R&D Tax Credit: If you’ve invested in innovation, product development, or process improvements.
- Work Opportunity Tax Credit: If you’ve hired employees from certain target groups.
- Energy-Efficient Business Credit: If you’ve made eco-friendly upgrades to your business.
If you’re in an industry that qualifies for tax credits, you shouldn’t be paying a dime more than necessary. A tax advisor in Austin can help you claim every credit available to you.
7. Schedule a Tax Strategy Session with Insogna CPA
There’s a difference between filing taxes and planning for taxes. If you’re only thinking about your taxes once a year, you’re likely paying too much.
Here’s what a year-end tax strategy session can do for you:
✔ Identify deductions you haven’t thought about.
✔ Ensure you’re making the right moves before December 31.
✔ Optimize your business structure for maximum tax efficiency.
✔ Give you a clear tax plan for the year ahead so you’re not scrambling at the last minute.
When you work with an Austin accounting service, you’re not just filing a return. You’re taking control of your financial future.
Final Thoughts
Smart business owners don’t wait until April to think about taxes. They plan ahead. By making the right moves before year-end, you can lower your tax burden, protect your profits, and set yourself up for success in the new year.
Why pay more than you have to?
Book a consultation today with Insogna CPA—your trusted Austin TX accountant.