September has a way of sneaking up on business owners.
Summer is winding down. Kids are going back to school. The fourth quarter is around the corner. And suddenly, December 31 doesn’t feel quite so far away.
That makes this a very good time to ask an important question:
What can I still do this year to reduce my business tax bill and avoid surprises when tax season arrives?
The answer is usually: more than you may think.
At Ryder & Company, we often remind business owners that tax planning works best before the year is over. Once December 31 passes, many of the opportunities you had during the year may be gone.
Quick Answer: What Should I Do Before Year-End to Prepare for Business Taxes?
Before December 31, small business owners should review year-to-date income and expenses, update their bookkeeping, check estimated tax payments, review payroll and owner compensation, consider planned equipment purchases, evaluate retirement contributions, and meet with their accountant about year-end tax planning.
The important part is doing this while there is still time to make thoughtful decisions.
Here are seven areas we recommend reviewing.
1. Do You Know What Your Business Has Actually Earned So Far This Year?
Start with your numbers.
That may sound obvious, but many business owners are so busy taking care of customers, employees and day-to-day operations that they haven’t stopped to look carefully at where the business stands.
Pull your year-to-date profit and loss statement and compare it with last year.
Ask yourself:
- Is revenue higher or lower than expected?
- Have expenses changed significantly?
- Are there expenses that haven’t been entered yet?
- Are there unusual transactions that need to be reviewed?
- Is the business more profitable than you expected?
That last question matters.
A strong year is wonderful, but higher profits can also mean a higher tax obligation.
Finding that out in September gives you time to plan. Finding it out when your return is being prepared gives you fewer choices.
Good tax planning begins with good information.
2. Are Your Bookkeeping Records Up-to-Date?
Your tax planning is only as accurate as your bookkeeping.
When several months of transactions haven’t been categorized, accounts haven’t been reconciled, or business and personal expenses have gotten mixed together, it becomes much harder to get a clear picture of your year.
We’ve worked with plenty of business owners who are excellent at what they do but don’t particularly enjoy keeping up with the books.
That’s understandable.
But before making year-end tax decisions, take some time to make sure your records tell the true story of your business.
That means reviewing bank and credit card accounts, recording expenses, reconciling accounts, checking outstanding invoices and making sure important purchases have been properly entered.
You don’t need perfect-looking reports just for the sake of having perfect reports.
You need accurate information you can use to make decisions.
3. Should You Adjust Your Estimated Tax Payments?
September brings an important tax deadline for many business owners.
For 2026, the third estimated federal tax payment for individuals is due September 15, 2026. Corporations making quarterly estimated payments may also have a September 15 payment due. The IRS generally requires estimated payments when enough tax isn’t being withheld throughout the year.
That makes September a natural time to ask:
Am I still paying the right amount?
Your income may have changed significantly since your estimated payments were originally calculated.
Maybe business has been better than expected.
Maybe it has slowed down.
Maybe you added employees, lost a major customer, purchased equipment or experienced another significant change.
Estimated payments don’t always need to stay exactly the same just because that’s where they started.
Reviewing them now may help you avoid a large unexpected balance later or determine whether your current estimates still make sense.
4. Are You Planning Any Business Equipment or Technology Purchases?
Maybe you’ve already been thinking about a new computer system, equipment, machinery, office furniture, technology or another major business purchase.
Year-end tax planning is a good time to discuss those purchases with your accountant before you make them.
Tax rules can affect when and how qualifying business property is deducted.
For 2026, the Section 179 deduction allows qualifying businesses to expense up to $2.56 million of eligible property, subject to limits and qualifications. The deduction begins phasing out when qualifying property placed in service during the year exceeds $4.09 million.
Another important change is bonus depreciation.
Current federal law provides a permanent 100% additional first-year depreciation deduction for certain qualifying property acquired after January 19, 2025. Depending on the property and circumstances, that may allow a business to deduct a substantial portion (or potentially all) of an eligible purchase in the year it is placed in service.
That doesn’t mean you should buy something simply to receive a tax deduction.
We’d never recommend spending $10,000 just to save a fraction of that amount in taxes.
But when your business genuinely needs a purchase anyway, timing can matter.
Talk with your accountant before placing the order so you understand how the purchase may affect your tax situation.
5. Have You Reviewed Payroll and Owner Compensation?
Payroll deserves a year-end review too.
Business owners sometimes think about payroll as something that simply happens every week or every two weeks.
But compensation can affect much more than the paycheck itself.
Depending on how your business is structured, it may be worthwhile to review:
- Owner wages
- Payroll tax deposits
- Employee bonuses
- Benefits
- Retirement plan contributions
- Contractor payments
- Reimbursements
- Shareholder or partner distributions
This can be particularly important for S corporation owners, where reasonable compensation requirements may come into play.
Don’t wait until the final payroll of December to discover something needs to be corrected.
A September or early fall review gives you more room to make adjustments.
6. Have You Looked at Retirement Contributions and Other Year-End Opportunities?
Retirement planning can sometimes create both a long-term benefit for you and a current tax planning opportunity.
Depending on your business structure, income and retirement plan, there may still be time to evaluate contributions before year-end or before applicable tax filing deadlines.
This is another area where planning matters.
Different retirement plans have different contribution limits, deadlines and requirements.
What works for a sole proprietor may not be right for a corporation with employees.
The goal isn’t simply to find another deduction.
The goal is to ask whether there are opportunities that fit both your personal plans and your business.
7. Have You Scheduled a Tax Planning Conversation Before December?
This may be the most important item on the list.
Don’t wait until you’re gathering documents for your tax return to begin thinking about tax planning.
Tax preparation and tax planning are two very different things.
Tax preparation looks backward.
It reports what already happened.
Tax planning looks forward.
It gives us a chance to look at what’s happening now and talk about what you may still be able to do before the year closes.
At Ryder & Company, we serve businesses throughout the greater Reading, Lancaster and Allentown areas from our West Lawn office. We work with businesses that need help with taxes, accounting, bookkeeping, payroll, QuickBooks and part-time CFO services.
One thing we’ve learned from working with business owners is that the earlier we can have the conversation, the more useful that conversation can be.
December can get busy very quickly.
September, October and early November give us more room to look at the numbers, ask questions and consider your options.
A Simple Year-End Tax Planning Checklist
Before December 31, make sure you’ve reviewed:
- Your year-to-date profit and loss statement
- Bank and credit card reconciliations
- Outstanding invoices and expenses
- Estimated tax payments
- Payroll and owner compensation
- Planned equipment or technology purchases
- Retirement plan contributions
- Major business changes that happened this year
- Any expected large income or expenses before year-end
- Your tax planning appointment
You may look at this list and realize you’re in good shape.
Great.
You may also discover two or three things that need attention.
That’s exactly why we’re recommending you look now.
What Happens Should You Wait Until Tax Season?
Once the calendar turns to January, we can still help prepare an accurate return and identify the deductions and credits you’re entitled to claim.
What we can’t do is go back in time and change many of the decisions that had to be made before December 31.
That’s the difference.
One conversation this fall may uncover questions you hadn’t thought about yet.
It may also simply confirm that you’re already on the right track.
Either outcome is valuable.
Ready to Take a Look at Your Year Before It Ends?
You don’t have to figure all of this out on your own.
At Ryder & Company, our job is to help make taxes, bookkeeping, accounting and payroll easier to understand so you can make informed decisions about your business.
We’re located at 201 W. Wyomissing Blvd. in West Lawn, Pennsylvania, and serve businesses throughout the greater Reading, Lancaster and Allentown areas.
Should you want to review where your business stands before year-end, give us a call at 610-670-6170.
There’s still time to make smart decisions.
The important thing is using it.
Frequently Asked Questions
When should a small business start year-end tax planning?
September through early November is an excellent time to begin. You’ll have enough year-to-date information to see how the business is performing while still having time to consider changes before December 31.
Can I lower my business taxes before the end of the year?
Possibly. Tax planning may identify opportunities involving expenses, equipment purchases, retirement contributions, timing of income or deductions, payroll and other areas. The right approach depends on your business and tax situation.
Is buying equipment before December 31 always a good tax strategy?
No. A tax deduction alone shouldn’t be the reason for making an unnecessary purchase. But when your business already needs equipment or technology, reviewing the timing with your accountant may help you make a better decision. Certain qualifying property may currently be eligible for Section 179 expensing or 100% bonus depreciation.
When is the September estimated tax payment due in 2026?
For many individual taxpayers making quarterly estimated payments, the third 2026 payment is due September 15, 2026. Businesses and owners should confirm which deadlines and payment requirements apply to their particular situation.
What’s the difference between tax preparation and tax planning?
Tax preparation reports what has already happened during the tax year. Tax planning looks at your current situation before the year ends and considers actions that may improve your tax position or help prevent surprises.
Does Ryder & Company work with small businesses outside West Lawn?
Yes. Ryder & Company is located in West Lawn and primarily serves businesses throughout the greater Reading, Lancaster and Allentown areas, as well as businesses throughout Berks County and surrounding communities.