Before the Holidays Hit: 7 November Actions That Can Reduce Your 2025 Tax Bill

Holiday plans and Q4 goals often swallow November. However, it's also one of your last and best chances to impact your 2025 tax outcome. Promise, you don’t need to overhaul everything.

A few focused, intentional actions can make a huge difference.

1. Update Your Bookkeeping

By now, your bookkeeping should be caught up through October. If not, prioritizing that now will give you time to make strategic decisions before year-end. Clean, current financials reveal the story of your business and allow you to edit that story before it closes for the year.

2. Collect Contractor Info

Request W-9s from any vendor you paid over $600 this year to prepare for 1099 filings. You also want to consider your contractor relationships. If you’ve worked with freelancers or vendors who aren't on payroll, double-check that you have W-9s on file. This simplifies January's 1099 process and avoids last-minute paperwork scrambles.

3. Reconcile Accounts

Complete all bank and credit card reconciliations to catch errors early. This will give you a clearer picture of what you have and what you can invest in before the year is out.

4. Conduct a Year-End Inventory Check

If your business carries inventory, this is the time to assess its current value. Inventory shrinkage, spoilage, or obsolescence could have tax implications and potential write-offs.

5. Evaluate Year-End Investments

It’s also a good time to evaluate any capital purchases. Need to upgrade equipment or invest in software? With guidance from your CPA, those investments could qualify for accelerated depreciation. Discuss equipment or tech purchases with your CPA to leverage depreciation or Section 179 deductions.

6. Plan for Bonuses

If bonuses are part of your year-end plan, build them into your budget and ensure they’re tax-compliant. Make sure cash flow supports it, and confirm timing to ensure it’s deductible this year.

7. Schedule a CPA Meeting

A November check-in allows time for actionable changes before the calendar flips. Don’t delay your CPA meeting. Their December calendars are brutal. Lock in time now to review your position and take final actions before it’s too late.

November can set your business up for the new year with lower taxes and a foundation to grow. Set up a time for a FREE diagnostic review of your QuickBooks to get started.