Q4 Tax Planning: Finish the Year Strong and Set Up for 2026
As the year comes to a close, Q4 is your best chance to make smart tax moves that can directly impact your bottom line. Whether you’re a business owner or an individual filer, taking time now to review your finances can help reduce your 2025 tax bill and set you up for a smoother year ahead.
Evaluate Where You Stand
Before you can plan effectively, you need to know exactly where things stand. Review your income, expenses, and books for the year to make sure everything is current and accurate. This includes reconciling accounts, catching up on bookkeeping, and addressing any outstanding invoices or unpaid bills.
For business owners, now is the time to analyze profitability by project or service line. Understanding which areas of your business are most profitable gives you insight into where to focus energy going forward. For individuals, reviewing your income and deductions now can help you anticipate whether you’re likely to owe or receive a refund.
Accurate financials also help identify tax-saving opportunities, whether that means adjusting payroll withholdings, making charitable contributions, or preparing for equipment purchases before year-end.
Make Strategic Year-End Moves
Once your books are clean, you can start making decisions that position you for success. This might include accelerating deductible expenses, such as investing in needed equipment, supplies, or software before year-end. If you expect higher income next year, deferring revenue until January may help balance your tax burden.
Business owners should also consider whether their current entity structure is still the right fit. Reviewing your S-Corp salary, owner draws, or partnership allocations can reveal ways to lower taxable income while staying compliant. For individuals, contributing to retirement plans or health savings accounts before December 31 can still make a noticeable difference in your 2025 tax liability.
Lastly, don’t overlook state-level considerations. Georgia’s tax updates for 2025 include new deduction thresholds and rate adjustments that could affect both personal and business returns. Understanding how those apply to your situation ensures you’re not caught off guard in April.
Plan Ahead and Take Action
Q4 isn’t just about wrapping up the year, it’s about getting ahead. Setting clear financial goals, reviewing cash flow, and preparing for next year’s obligations gives you control and confidence heading into 2026.
Next Steps:
Review and reconcile all accounts before year-end.
Meet with your CPA or EA to estimate your tax position.
Identify deductible purchases or contributions that make sense for this year.
Plan for payroll and retirement contributions while there’s still time to adjust.
The effort you put in now pays off later. By taking proactive steps before December 31st, you’ll reduce stress at tax time and keep more of what you’ve earned.
If you’re a small business owner or individual in Southeast Georgia looking for guidance, Walker Financial Solutions can help you review your books, plan strategically, and finish the year strong. Reach out today to schedule your year-end consultation and make sure your tax plan is working for you, not against you.