Your Small Business Year-End Checkup: Make Every Deduction Count Before December 31

Hi friends,

Hard to believe it’s already November and we’re coming up fast on the end of 2025. What a year, right? With so many changes in the tax world, now’s the perfect time to pause and give your business a quick year end checkup to make sure every deduction counts before December 31. Because once we get there, there is really nothing else we can do.

Here are a few things worth checking in on before the year wraps up:

Clean Up Your Year- End Books:

Fog in Sebastopol

Have your books been cleaned up lately? Are your bank accounts and credit cards reconciled? Loan balances accurate?


We handle bookkeeping for a number of our clients, but many business owners keep their own books, and every year at tax time we see things that could have been cleaned up before year end. Having your books in good shape now means we can run solid projections, spot opportunities like retirement contributions or equipment purchases, and help you make strategic moves before it is too late.

Check Your S-Corp Compensation:

As part of your small business year-end check up if you are an S-corporation owner, this one is important. Take ten minutes to reconcile the bank and card accounts. Then check loan balances. Have you reviewed your reasonable compensation for the year? Are you paying yourself enough to avoid IRS issues down the road? We see this too often after the fact, and by then there is not much we can do. A quick review now can save you a big headache later.

Review Your Estimated Taxes:

If your income has changed from last year, up or down, your estimated taxes might need some attention. The goal is to hit that sweet spot: not overpaying and not underpaying. A year end projection helps make sure you are where you should be.

Fall coffee and book

Consider Any Last Minute Deductions:

Are there purchases or investments you have been putting off? Maybe new equipment, updated software, or professional services? Making those decisions before December 31 could help lower your taxable income and put you in a stronger position for 2026.

What To Do For Small Business Year-End Check-Up:

•      Reconcile accounts and clear uncategorized transactions.

•      Verify S-Corp reasonable compensation.

•      Run a quick projection to check estimates.

•      Make necessary purchases before December 31.

•      Need help now? Book a tax reduction & optimization session, start tax preparation, or ask about accounting & bookkeeping. If you have questions, contact us.

We want to be proactive, not reactive. A little time and planning now can make next spring so much smoother, and honestly, life is hard enough; taxes do not have to make it harder.
If this sounds like something you have been meaning to tackle, give the office a call. We can schedule a tax projection, do some cleanup, or just help you feel confident heading into 2026.
Let’s make sure you do not miss the boat this year.


Warmly,

Melissa Ochoa

Enrolled Agent & Owner, Apple Blossom Tax Service

Serving Sebastopol and Sonoma County