Tax season isn’t something most business owners get excited about. But waiting until April to deal with it? That’s how you end up overpaying. The smartest entrepreneurs know that tax savings happen before December 31, not when you’re filing.
Want to legally keep more of your money and pay the IRS less? Here are seven tax-saving moves to make before year-end.
1. Max Out Pre-Tax Retirement Contributions
You’re already thinking about the future of your business, but what about your personal finances? Contributing to a 401(k) or Traditional IRA reduces your taxable income, which means you pay less in taxes now while building long-term wealth.
- 401(k) limit for 2025: $23,500 ($30,500 if 50+)
- IRA limit for 2025: $7,000 ($8,000 if 50+)
If you’re self-employed, a Solo 401(k) or SEP IRA could allow you to contribute even more. A CPA in Austin, Texas can help you choose the best plan for maximum savings.
2. Get Strategic About Income Timing
If your income varies year to year, the timing of when you receive money can impact how much you owe.
- Expecting higher taxes next year? Pull income into this year by invoicing early.
- Think next year’s tax rate will be lower? Defer income by pushing invoices into January.
An Austin tax accountant can analyze your cash flow and tax bracket to find the smartest strategy.
3. Write Off Major Business Purchases
Need a new laptop, office furniture, or company vehicle? Buy it before December 31 and write it off this tax year.
- Section 179 lets businesses immediately deduct the full cost of equipment instead of depreciating it over years.
- Software, office supplies, and even business travel expenses can qualify.
A small business CPA in Austin can ensure you’re maximizing deductions while staying compliant.
4. Claim Tax Credits That Put Cash Back in Your Business
Deductions lower your taxable income, but credits reduce your tax bill dollar for dollar. Yet, many businesses miss out simply because they don’t know what they qualify for.
Some overlooked tax credits include:
- R&D Tax Credit – If you’ve developed a new product, software, or process, you could be eligible.
- Work Opportunity Tax Credit – Hiring veterans or long-term unemployed individuals could save you money.
- Energy Efficiency Tax Credits – Upgrading your business with eco-friendly equipment? You might get a tax break.
A tax advisor in Austin can help uncover credits that apply to your business.
5. Make Charitable Contributions That Count
Giving back isn’t just good for the community. It can also lower your taxable income.
- Cash donations to IRS-qualified charities are deductible up to 60% of your adjusted gross income.
- Donating stock, property, or unused business inventory may provide even bigger tax benefits than cash.
- Even business sponsorships and certain pro bono services could qualify.
Not all contributions count, though, so check with a CPA firm in Austin, Texas to ensure you’re donating in a tax-smart way.
6. Max Out Your HSA or FSA for Tax-Free Medical Savings
If you’re not using a Health Savings Account (HSA) or Flexible Spending Account (FSA), you’re leaving easy tax savings on the table.
- HSAs allow pre-tax contributions that grow tax-free and can be used for medical expenses anytime.
- FSAs offer tax-free medical spending, but funds must be used before year-end.
An Austin accounting service can help ensure you’re maxing out these accounts before December 31 for the best tax advantage.
7. Work With a CPA to Spot Additional Tax Savings
The best tax strategies aren’t found in TurboTax or a quick Google search. The biggest tax savings come from knowing:
- Which deductions apply to your industry
- Whether an S-Corp election could lower your self-employment taxes
- How to structure your income to avoid unnecessary tax liability
A CPA in Austin, Texas can analyze your business finances and find savings opportunities you didn’t even know existed.
Don’t Wait: The Best Time to Save on Taxes Is Now
If you wait until tax season to think about your taxes, you’re already too late. The best way to pay less and keep more money in your business is to plan before the year ends.
At Insogna CPA, we specialize in helping business owners reduce tax bills, maximize deductions, and create long-term tax strategies. Whether you need an Austin small business accountant, an Austin tax accountant, or a CPA firm in Austin, Texas, we’ve got you covered.