As we approach the close of the calendar year, it’s easy to get swept up in the holiday season and put off financial planning until January. But for business owners, December is a powerful month—a final window of opportunity to improve your tax outcome, prepare for growth, and start the new year from a place of clarity.

At Stanaland Dodson & Associates LLP, we believe the best surprises in April are no surprises at all. Here’s our recommended year-end checklist to help your business finish strong and position itself for success in 2026.

1. Review and Maximize Section 179 and Bonus Depreciation Opportunities

Thinking about buying equipment or vehicles for your business? Qualified asset purchases made before December 31 may be eligible for Section 179 expensing or 100% bonus depreciation (though bonus depreciation is phasing down).

This can significantly lower your taxable income for the year—but timing is everything. Talk to your CPA before making large capital purchases.

2. Evaluate Your Entity Structure

Has your business grown significantly this year? Has your team expanded? Are you planning for succession?

December is a great time to reevaluate whether your current structure (LLC, S Corporation, C Corporation, partnership) still serves your needs. We often find opportunities to reduce self-employment tax, improve retirement benefits, or better protect owners through structural adjustments.

3. Consider Bonuses or Compensation Adjustments

Planning year-end bonuses for employees or owners? Be strategic.

Bonuses paid before December 31 are generally deductible in the current tax year. If you’re an S-Corp owner, reasonable compensation matters not only for tax compliance but for future planning (including retirement contributions and exit strategies).

Let your CPA help you run the numbers.

4. Fund Retirement Plans Before Deadlines

If your business sponsors a retirement plan, review contribution deadlines now.

• 401(k)/SIMPLE/SEP plans may allow both employee and employer contributions.
• Defined benefit plans require actuarial input and strict funding rules.

The earlier you plan, the more flexibility you have. These contributions reduce taxable income and help retain top talent.

5. Clean Up Receivables and Inventory

Now is the time to reconcile aged accounts receivable and clear out stale inventory.

• Can old invoices be collected or written off?
• Should inventory be discounted, donated, or disposed of?

These adjustments improve the accuracy of your financials and may impact your tax liability.

6. Review Estimated Tax Payments and Projections

Are you on track with your 2025 estimated tax payments? Have there been unexpected changes to revenue, expenses, or owner distributions?

We recommend a year-end projection to avoid underpayment penalties and cash flow surprises in Q1.

7. Prepare Financial Statements for Your Banker or Bonding Agent

If you’re in construction, manufacturing, or trucking, chances are your bank or bonding company will request reviewed or compiled financials early in Q1.

Get a head start:

• Schedule your financial statement engagement now
• Discuss timing with your CPA and banker
• Clean up your books before the year closes

Bonus Tip: Plan a Strategy Meeting for January

Smart business owners use January to reflect, regroup, and set priorities. Book time with your CPA now to:

• Analyze your 2025 performance
• Set benchmarks for 2026
• Review tax law changes that may affect you next year

Let’s Finish Strong

Whether it’s managing cash flow, planning for growth, or reducing tax liability, the last few weeks of the year are packed with potential.

Need help running projections or checking off this list? We’re here. Let’s end 2025 with clarity and confidence.

Stanaland Dodson & Associates LLP
Certified Public Accountants in Winston-Salem, NC
Serving clients “Beyond the Bottom Line” since 1984.

📞 (336) 765-2817
📧 info@sdallp.com
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