A few weeks ago, we got a call from a referral.
She was frustrated.
Her CPA had just handed her Q3 numbers and said, “Looks like you’ll owe a lot in April.”
That was it—no advice, no strategies, no options.
By the time she found us, she had already lost valuable planning time. But in just three weeks, with the right year-end strategies, she saved $25,900—and opened the door to saving six figures every year going forward.
The difference? Planning. And working with an advisor who knows which levers to pull before December 31st.
Most owners think tax planning happens in April. By then, you’re not planning—you’re just paying. The real money gets saved now, in the final weeks of the year, when you still have time to act.
Here are five strategies that can still change your tax picture before the clock runs out.
1. Maximize Your Business Retirement Contributions
The Story: One referral came to us, earning over $750,000, which pushed her into the 37% federal tax bracket. Her CPA had mentioned retirement accounts in passing, but never ran the numbers or showed her the options.
We set up a SEP-IRA and helped her contribute $70,000 before year-end, saving her $25,900 in taxes immediately.
But here’s the real eye-opener: because her income was so high, we also introduced her to a Cash Balance Plan. At age 45, she could contribute around $150,000 per year; at age 55, that number jumps to $250,000+ annually. At her tax bracket, that’s six-figure tax savings every single year—something her CPA had never even mentioned.
The Reality: Business owners have retirement options that employees rarely access:
- SEP-IRA: Contribute up to 25% of compensation, capped at $70,000 in 2025.
- Can be funded up to your tax-filing deadline (with extensions).
- No catch-up contributions for age 50+.
- Solo 401(k): In 2025, you can defer up to $23,500 as an employee (plus a $7,500 catch-up if 50+) and then add up to 25% of compensation as the employer. The combined maximum is $70,000 if under 50, or $77,500 if 50+. Ages 60–63 may qualify for a “super catch-up” under SECURE 2.0, raising the total to $81,250.
- Must be established by December 31, 2025.
- Cash Balance Plan: For high earners, these defined-benefit style plans can allow contributions of $150,000–$250,000+ per year, depending on age.
- Contributions are deductible, and the tax savings at top brackets can easily exceed six figures annually.
- Plans require actuarial certification and consistent funding, but for the right owner, they are transformative.
Smart Move: Don’t settle for “just put money in an IRA” advice. The earlier you explore your retirement plan options, the more flexibility—and the more savings—you’ll have.
2. Time Your Equipment Purchases (But Do It Smart)
The Missed Opportunity: Too many business owners are told by their CPA, “you’ll need to pay a lot—maybe buy something before year-end.” But without context, they end up spending money just to spend money.
The Story: A dental practice owner needed new digital imaging equipment but kept delaying the purchase. When she finally acted in November, her $85,000 buy turned into $27,200 in tax savings through Bonus Depreciation.
The Reality: With the OBBBA passing, Bonus Depreciation has been reinstated for qualified purchases after January 19, 2025, as long as they’re bought and placed in service before December 31. Placed in service means operational—not sitting in the box.
Smart Move: Don’t let “buy something” be your CPA’s only strategy. Buy only what you need, and time it strategically to maximize savings.
3. Accelerate Deductible Business Expenses
The Missed Opportunity: Many CPAs only look backward—“Here’s what you owe.” They rarely say, “Here’s how to change the numbers before year-end.”
The Story: A marketing agency owner realized in November that she’d have a great year—too great for her tax comfort. Her CPA hadn’t suggested any strategies. We stepped in and helped her accelerate $43,000 in planned expenses: software, training, office updates, and contractors. The result? $13,760 in tax savings and a business positioned for growth in the coming year.
The Reality: If you’re on a cash basis, you can speed up deductions by prepaying expenses you’d incur anyway, such as software, conferences, advertising, or year-end bonuses. The IRS 12-month rule applies to items like rent and insurance.
Smart Move: Don’t create fake expenses, but don’t delay real ones either. If you plan to upgrade your office computers in February, consider doing so in December to capture the deduction a year earlier.
4. Optimize Your Business Structure Before Year-End
The Missed Opportunity: Too many CPAs fail to revisit entity structure once it’s set up. They file returns year after year—even if the client is leaving thousands on the table.
The Story: A successful consultant was operating as a sole proprietor, paying self-employment tax on every dollar of profit. Her CPA had never mentioned the S-Corp election. In November, we helped her elect S-Corp status, set up a reasonable salary, and saved her $8,400 in self-employment taxes for the remaining two months of the year. (The savings for the following year? Even bigger.)
The Reality: Many business owners are structured incorrectly for their current income level:
- Sole proprietors with $60K+ profit often save by electing S-Corp.
- Partnerships may adjust allocations.
- LLCs might elect to be taxed as an S-Corp depending on income, growth, and long-term strategy.
Smart Move: Don’t assume your CPA is monitoring your structure. Changes have strict deadlines—and the earlier you make the move, the more you’ll benefit.
5. Strategic Income and Expense Timing
The Missed Opportunity: Filing CPAs react to what happened. Proactive advisors help you shape what happens.
The Story: A real estate agent knew two closings in December would spike her taxable income. Her CPA never suggested timing strategies. We helped her shift $60,000 in commissions to January and accelerate $25,000 in expenses into December. She reduced her 2025 taxable income by $85,000, saving $23,800 in taxes—all while keeping her cash flow balanced.
The Reality: Cash-basis professionals can often time income and expenses for maximum tax benefit:
- Delay closing or invoicing until January (if cash flow allows).
- Accelerate deductible expenses (marketing, dues, memberships).
- Prepay office rent or insurance (subject to the 12-month rule).
Smart Move: Don’t let a CPA who only looks backward miss opportunities that are still in front of you. When timing is flexible, use it to your advantage.
The Bottom Line: December 31st is Your Real Drop-Dead Date
Here’s what separates thriving businesses from struggling ones: they don’t wait for tax season—they make moves while there’s still time.
Your 2025 tax bill isn’t fixed until December 31st at 11:59 PM. Every day you delay is money lost.
The owners who win big don’t just earn more—they keep more. A lot more.
Don’t settle for a CPA who just files your return. Work with an advisor who helps you pull the right levers before the year is over.
Book Your Year-End Planning Call Today.
Your future self will thank you.
