The end of the year can sneak up fast, and with it, all the financial loose ends that come with running a business. Between wrapping up projects and planning for the holidays, tax planning often gets pushed to the back burner.

But here’s the truth: a few small, proactive moves in Q4 can make a big difference in what you owe (and how smoothly tax season goes).

At SoCo CPA, we help small business owners across Oregon and beyond stay positioned for the next wave with clear, forward-thinking accounting advice. Here are five smart steps to take before December 31.

1. Review Your Estimated Taxes

If you’ve had a strong year, you might owe more than you expect. Reviewing your quarterly estimated payments now can help you avoid underpayment penalties later. Your CPA can project your year-end income and help you make a final adjustment—no surprises come April.

Pro tip: Even if your income fluctuated this year, the IRS “safe harbor” rule can help you avoid penalties by paying 100% of last year’s tax (or 110% if your income was higher).

2. Max Out Retirement Contributions

Retirement contributions are one of the most effective ways to reduce taxable income and build long-term wealth.

Whether you use a Solo 401(k), SEP IRA, or another plan, making contributions before the deadline can help you keep more of your hard-earned money while investing in your future.

Not sure which plan fits your business? This is a great question to ask your CPA or financial planner (luckily, SoCo CPA can help with both).

3. Consider Year-End Purchases Strategically

That new equipment, software, or vehicle you’ve been eyeing? Buying before year-end could qualify for Section 179 or bonus depreciation deductions—but only if it’s in service before December 31.

That said, don’t rush into spending just for a deduction. A good rule of thumb: if it’s something your business truly needs and it will improve efficiency, it’s worth discussing with your CPA.

4. Clean Up Your Books

The more organized your records are now, the easier (and faster) your tax preparation will be later.

Take time to:

Reconcile bank accounts
Review unpaid invoices
Update mileage logs
Organize digital receipts

If bookkeeping isn’t your favorite thing (and let’s be honest, for most people it isn’t), SoCo CPA can connect you with trusted bookkeeping partners who make it painless and paperless.

5. Schedule a Pre-Year-End Tax Check-In

The biggest tax savings happen before the year closes. A 30-minute planning session with your CPA can help uncover deductions, timing opportunities, and entity structure adjustments that make sense for your situation.

This is especially important if you:

Added or plan to add a business partner
Changed your ownership structure
Are planning a large purchase or sale
Expect significant income changes next year

Get Year-End Help

Tax planning doesn’t have to be complicated, and it shouldn’t be a last-minute scramble. With the right guidance, you can make smart moves now that pay off later.

At SoCo CPA, we combine clear communication, modern tools, and decades of expertise to help small business owners make informed financial decisions, all year long.

Ready to get ahead of tax season? Start the conversation with SoCo CPA →

5 Tax Planning Moves Every Small Business Should Make Before Year-End