Small Business Owners: What Needs Your Attention Before Year-End

What needs your attention before year-end?

December goes fast. Between the holidays, client deadlines and time off, the last few weeks of the year disappear before most business owners get a chance to look at their numbers. And most of the moves that can lower your 2026 taxes or set up a stronger 2027 only work before December 31.

Here are nine things to check off now, grouped so you can work through them one step at a time.

Know where you stand

1. Review your revenue and profit goals

Pull up the goals you set at the start of the year and compare them to where you are now. Are you on track? If not, what would it take to close the gap in the next eight weeks? Even if you're ahead, knowing your profit now is what makes year-end tax planning possible.

2. Check your cash flow

Look ahead 90 days, not just at today's bank balance. January brings payroll, quarterly estimated taxes, insurance renewals and, for many businesses, a slower sales month. Make sure you have the cash to cover it.

3. Follow up on unpaid invoices

Payments slow down during the holidays. Send reminders now, call on anything past 60 days, and decide what to do about accounts that may never pay. The money you collect in December is money you can use in January.

Get your numbers right

4. Get your bookkeeping caught up

Every other item on this list depends on this one. Make sure every bank and credit card account is reconciled through at least October, receipts are matched and transactions are categorized correctly. You can't make good decisions with numbers you don't trust.

5. Review your budget

Compare what you planned to spend with what you actually spent. Where did costs drift? Which expenses paid off and which didn't? This review is also the starting point for your 2027 budget.

6. Review upcoming tax deadlines

A few key federal dates to put on your calendar:

California has its own estimated payment and payroll deadlines, so check those too.

Plan ahead

7. Plan year-end purchases and expenses

If you need equipment, vehicles, computers or furniture, buying before year-end can mean a bigger deduction for 2026. The asset has to be placed in service by December 31, not just ordered. Remember that a deduction isn't a discount: only buy what the business actually needs.

8. Prepare for 1099 season

Fewer vendors will need a form, but don't skip the prep. Collect a W-9 from every contractor you've paid this year, check that names and tax ID numbers match, and total up what you paid each one. Chasing W-9s in late January is much harder than collecting them now.

9. Start forecasting for 2027

Set revenue and profit targets for next year, map out hiring and big purchases, and decide what needs to change. A simple forecast turns "I hope next year is better" into a plan you can measure month by month.

Don't wait until January

Once the calendar flips, most of your options for 2026 are gone. A few hours of review in November or early December can mean lower taxes, better cash flow and a much calmer tax season.

This article is for general information only and is not tax or legal advice for your specific situation. Tax rules change and individual circumstances vary, so please consult a qualified professional before acting.