Whether you’ve had a year of growth or are managing a tighter margin, this is the season to get clear on where your business stands and what opportunities you still have to capture before December 31. Let's get into it.
October is a turning point for most business owners. It’s that time of year when you can still influence how your 2025 taxes will play out — but only if you act now. By the time January rolls around, most of the moves that actually save money are off the table. So instead of waiting until tax season to deal with surprises, October is the perfect window to take a step back, review your financials, and make smart adjustments while there’s still time.
Many business owners think of taxes as something that happens after the year ends. In reality, tax planning is something that should happen before the books close. When you look ahead — not back — you get to decide what your tax outcome looks like instead of simply reacting to it. Whether you’ve had a year of growth or are managing a tighter margin, this is the season to get clear on where your business stands and what opportunities you still have to capture before December 31.
The first step in year-end tax planning is understanding where your business currently sits. Look closely at your income, operating expenses, and net profit to see how 2025 is shaping up. If your income is higher than expected, you may be able to reduce your taxable income by accelerating certain expenses — like stocking up on inventory, investing in equipment, or prepaying for services you’ll use early next year. On the other hand, if you expect your income to dip in 2026, it may make sense to defer certain income into the new year instead.
This kind of timing strategy helps even out your tax burden and gives you more control over your cash flow. Small adjustments like these can lead to significant tax savings when done intentionally. A mid-year or fall financial review is also a great opportunity to spot missed deductions, ensure all transactions are properly categorized, and clean up your books before things get busy in January.
The One Big Beautiful Bill Act (OBBBA) introduced updates that affect small and mid-sized businesses in 2025. Here’s a quick summary of some of the most relevant items:
Source: IRS Publication 946, IRS Notice 2025-21, and the One Big Beautiful Bill Act (2025).
If you’ve been operating under the same business structure since you started, it may be time for a fresh look. The difference between an LLC, S Corp, and C Corp can have a major impact on how much you pay in taxes — and how you pay yourself as an owner. As your company grows, what made sense a few years ago may no longer be the most tax-efficient choice.
Reassessing your entity structure can help you optimize your salary versus distributions, maximize the Qualified Business Income (QBI) deduction, and reduce self-employment taxes. This review also opens the door to broader financial discussions — like succession planning, profit distribution, and how to prepare your business for future expansion or funding. Even if you don’t make a structural change immediately, understanding your options ensures your tax strategy aligns with your business goals.
Retirement planning isn’t just about the future — it’s one of the most effective tax tools available right now. Contributing to a SEP IRA, SIMPLE IRA, or Solo 401(k) can lower your taxable income and strengthen your long-term wealth at the same time. The key is to make sure your plan fits your current business model and cash flow.
For business owners with employees, this is also a great time to review company-sponsored retirement plans and ensure contribution limits are being maximized before year-end. If you don’t yet have a retirement plan in place, establishing one before December 31 can unlock new deductions and give you a head start on building financial stability beyond your business.
One of the simplest — yet most overlooked — steps in tax planning is keeping thorough documentation. This includes receipts, invoices, mileage logs, payroll reports, and equipment records. Organized records not only make filing easier but also protect you in case of an audit. October is a great time to get these details in order while there’s still time to correct or update anything missing.
Think of this as your business’s year-end “housekeeping.” Having your financials and documentation clean now allows your tax team to spend their time identifying savings instead of chasing paperwork later. It’s one of those small habits that make a big difference in how smooth — and stress-free — your tax season feels.
Not at all. In fact, October through December is the most important window of the year for tax planning. Many deductions, elections, and credits depend on what happens before year-end. Acting now means you still have time to adjust your income, expenses, and investments to reduce your 2025 liability.
If you were already planning to upgrade, buying and placing it in service before December 31 could qualify it for immediate expensing under Section 179 or bonus depreciation. That said, don’t purchase equipment just for the write-off — it should make financial sense for your operations too.
We recommend reviewing your entity setup every few years or anytime your income, ownership, or growth plans change. A short conversation with your tax advisor can reveal whether a different structure could lower your taxes or simplify your reporting.
Waiting too long to talk with their tax professional. By January, most of the strategic moves that actually lower taxes are no longer available. Meeting in October or November gives you time to make smart, proactive changes that pay off.
The truth is, year-end tax planning doesn’t have to feel overwhelming. When you have a clear picture of where your business stands — and a plan to act on it — the process becomes empowering. The right strategy can help you keep more of what you’ve earned, strengthen your financial position, and start the new year with confidence.
At Vincere Tax, we specialize in helping business owners turn complex tax situations into clear, actionable strategies. We don’t just file your returns — we partner with you to understand your goals, identify savings opportunities, and build a long-term plan that grows with your business.
If you haven’t scheduled your Year-End Tax Review yet, now’s the time. Our team will help you review your numbers, adjust your strategy, and ensure that when December 31 hits, you’ve done everything possible to reduce your tax bill and position your business for success.
📅 Schedule your Year-End Strategy Session today with Vincere Tax — and let’s make sure your 2025 finish is your strongest yet.
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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