Published: December 2025
Maximize Your Year-End Tax Savings
As the year winds down, Q4 is the best time to take advantage of tax-saving strategies that can significantly reduce your taxable income. Whether you operate a small business, freelance, or manage investments, planning now helps ensure you don’t miss deductions that could lower your tax burden.
1. Review & Categorize All Business Expenses
Make sure every deductible business expense is properly recorded and categorized— including software, mileage, supplies, equipment, and business meals.
2. Take Advantage of Section 179 & Bonus Depreciation
Purchasing equipment before December 31 may allow you to deduct the full cost in the current year, improving cash flow and lowering taxable income.
3. Increase Retirement Contributions
Retirement plans like SEP IRAs, Traditional IRAs, and Solo 401(k)s offer powerful tax benefits. Many contributions can still be made after year-end, but planning starts now.
4. Prepay Deductible Expenses
Cash-basis businesses can boost deductions by prepaying rent, utilities, insurance, and vendor invoices before December 31.
5. Complete Your Year-End Bookkeeping Cleanup
Clean financial records ensure accurate tax returns and avoid IRS issues. Key steps include:
- Reconciling bank and credit card accounts
- Correcting miscategorized expenses
- Reviewing unpaid invoices and open bills
- Updating fixed asset and depreciation schedules
- Ensuring payroll taxes are up to date
6. Organize Key Documents for Tax Filing
Gather receipts, payroll reports, 1099 contractor details, and year-end summaries now to streamline the filing process and reduce preparation costs.
Need Year-End Tax Help?
PRZ CPA provides proactive tax planning, IRS compliance support, and professional bookkeeping guidance to help you stay ready for tax season.