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Q4 Finance Tips to Finish the Year Strong

  • CPA by Choice
  • 12 hours ago
  • 3 min read

As we approach the end of the year, small business owners have a valuable opportunity to tighten up their finances, maximize tax savings, and set the stage for a strong start in the new year. At CPA by Choice, we understand that Q4 can feel like a sprint to the finish line, but with the right strategy, it can also be your most profitable and productive quarter.


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Here are our top Q4 finance tips for small business owners to help you finish the year strong.

 

1. Review Your Financial Statements and Cash Flow

The first step in wrapping up the year is getting a clear picture of your financial health. Review your income statement, balance sheet, and cash flow report. Ask yourself:


  • Are your revenues on track with your projections?

  • Which expenses grew more than expected?

  • Is your cash flow stable enough to cover year-end obligations?

 

Pro Tip: Use this time to identify trends, such as seasonal fluctuations or recurring cash flow gaps, so you can plan for next year more effectively.

 

2. Maximize Year-End Tax Deductions

Before December 31st, look for legitimate ways to reduce your taxable income. Common year-end tax strategies include:


  • Prepaying expenses (like rent or supplies)

  • Purchasing new equipment or vehicles eligible for Section 179 deductions

  • Contributing to retirement plans such as SEP IRAs or Solo 401(k)s

  • Writing off bad debts that are unlikely to be collected

 

Every dollar you can deduct before the year closes can make a big difference at tax time.

 

3. Conduct a Payroll and Contractor Audit

Ensure all payroll information is accurate and up to date before year-end. This helps you avoid filing errors on W-2s and 1099s in January.

 

If you’ve paid contractors more than $600 during the year, make sure you’ve collected their W-9 forms and are prepared to issue 1099-NEC forms. The IRS has increased scrutiny in this area, so accuracy is key.

 

4. Evaluate Your Inventory and Assets

Perform a year-end inventory count and compare it to your accounting records. Write off obsolete or damaged inventory to improve your balance sheet and reduce taxes.

 

Also, review your fixed assets to determine if any equipment should be retired or replaced before the new year.


5. Plan for Taxes Early

Don’t wait until March or April to think about taxes. By reviewing your financials now, you can:


  • Estimate your tax liability

  • Make final estimated payments if needed

  • Identify tax-saving opportunities before it’s too late

 

If your business had a profitable year, consider scheduling a tax strategy session with your CPA before December 31st. Small changes now can yield big tax savings later.

 

6. Review and Adjust Your Budget for Next Year

Use the insights from your Q4 review to refine your 2026 business budget. Factor in:


  • Expected sales growth or downturns

  • New product launches or services

  • Changes in vendor costs or staffing

 

A realistic, data-driven budget gives you control and confidence heading into the new year.

 

7. Don’t Forget Personal Finances

If you’re a small business owner, your personal and business finances are often intertwined. Before year-end, review:


  • Your estimated personal tax payments

  • Retirement contributions

  • Health insurance premiums

  • Owner draws or distributions

 

This ensures you’re optimizing both sides of your financial picture.

 

Partner with CPA by Choice to End the Year Right

At CPA by Choice, we specialize in helping small business owners navigate Q4 confidently. From tax strategy to financial forecasting, our experts can help you finish the year strong, and start the next one even stronger.

 

Ready to get ahead?

Schedule your year-end financial review with us today and take control of your business’s financial future.


 
 
 
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