As 2026 comes to a close, now is the perfect time to review your business finances and make sure you're prepared for tax season. A little planning before December 31 can help prevent surprises, identify potential tax-saving opportunities, and make preparing your tax returns much easier.

Here are five things every business owner should review before year-end.

1. Make Sure Your Books Are Up to Date

Reconcile your bank accounts and credit cards, review outstanding transactions, and make sure all income and expenses have been recorded. Waiting until tax season to clean up an entire year's worth of bookkeeping can lead to unnecessary delays and expenses.

2. Review Business Purchases and Equipment Needs

If you've been considering purchasing equipment, machinery, or other business assets, now may be a good time to discuss your options with your accountant. Recent tax-law changes have expanded depreciation opportunities for qualifying purchases.

Remember, purchasing something solely for a tax deduction rarely makes financial sense. The purchase should benefit your business first.

3. Review Your Estimated Tax Payments

If your business has been more profitable than expected, you may owe additional income taxes. Reviewing your projected income and estimated payments before year-end can help you plan for the amount due and potentially avoid underpayment penalties.

4. Verify Employee and Contractor Information

Make sure employee information is current and that you have completed W-9 forms for applicable independent contractors. Reviewing this information now can save considerable time during January's W-2 and 1099 reporting season.

5. Talk to Your Accountant Before Making Major Decisions

Certain tax-saving opportunities must be addressed before December 31. Waiting until your return is being prepared may mean those opportunities are no longer available.

The Bottom Line

Good tax planning starts before the year ends. If you're considering a major purchase, expecting an unusually profitable year, or simply unsure whether your business is ready for tax season, contact Tzinberg & Associates. We're happy to help you evaluate your options.

___________________________________________________________________________________

Under U.S. Treasury regulations, any tax advice in this communication is not intended or written to be used to avoid IRS penalties. Tzinberg & Associates provides this information for general guidance only. It does not constitute tax advice, accounting services, investment advice, or professional consulting. Consult a professional adviser before making decisions or taking action, as the information is provided "as is" without any warranties regarding its completeness, accuracy, or timeliness.