Smart Moves: 8 DIY Strategies Small Business Owners Should Tackle Before December

December 31st might seem like a distant deadline, but for small business owners, year-end tax planning is already on the clock. Waiting until April limits your options. If you don’t have a bookkeeper, you need to make the smart moves happen now.

Think of your financial year as a race, with December being the finish line. However, your pacing, decisions, and strategy happen much earlier. One of the most effective things you can do is evaluate your financial reports. Are your books up-to-date? Are your expenses categorized correctly?

Now is the time to take a breath, look at your numbers, and make sure your books are in order to hand off to your accountant for tax season. If you don’t have a bookkeeper to help, these processes can save you time, money, and stress with your CPA.

1. Reconcile Bank & Credit Card Accounts

Make sure your books match what actually hit the bank. Go line by line and check that every transaction in your accounting software lines up with your statements. This helps you catch duplicates, missed entries, or anything funky that doesn’t belong.

2. Categorize and Date Transactions Correctly

Every dollar should land in the right bucket, at the right time. Double-check that income and expenses are labeled correctly and tied to the correct date, so your reports tell the whole story (and tax season doesn’t get messy).

3. Clean Up Accounts Receivable and Payable

Still showing unpaid invoices for work you wrapped months ago? Or old vendor bills that should’ve been closed out? Now’s the time to clean it up. Make sure what’s open is real, current, and correct.

4. Post Adjusting Entries

Got income you earned but haven’t received yet? Or bills that belong to this period but haven’t hit your books? Add adjusting entries to ensure your financials reflect reality, not just what’s been paid.

5. Close Out Inactive Accounts

If you’ve got accounts you’re not using (or personal expenses hiding in your business books), close them out or move them where they belong. The cleaner your chart of accounts, the more precise your financial picture.

6. Talk to Your CPA About Where You Can Get Tax Breaks

Ask your CPA if you can use any of these tax-saving strategies: Pre-pay for business purchases or services you know you’ll need next year. This can lower your taxable income for 2024. Delay project invoicing until January to reduce your current year’s taxable income. You can also ask about contributing to a SEP IRA or solo 401(k) to reduce your taxable income while investing in your future. Use extra profit to make an early estimated tax payment, helping avoid penalties and improving cash flow.

7. Schedule a CPA Check-In Now

Early meetings mean more time to plan. Send your clean books now and avoid the April crunch.

Get the most out of your books to prepare for tax season. Need help with this list? Reach out to us.