Why this matters
Many important tax-planning actions must be completed by December 31: equipment must be placed in service, owner payroll must have run, cash-basis expenses must be paid. Meet your accountant in February and you're doing history; meet in November and you're doing planning.
What "done" looks like
- A planning meeting with your accountant on the calendar for November
- A full-year tax projection built on 10-11 months of actuals
- A written before-December-31 action list with owners and dates
- January obligations (W-2s, 1099s, the Q4 estimate) prepped, not discovered
How to do it
- Book the meeting for early-to-mid November, late enough for real numbers, early enough to act.
- Close the books through October first so the projection stands on actuals.
- Walk the standard levers: timing of income and expenses (cash basis), equipment purchases, retirement contributions, S corp owner salary, each has a year-end boundary.
- Check purchase timing rules: Section 179 and bonus depreciation require the asset placed in service, usable, not just ordered, by December 31.
- Recheck the January 15 estimated payment, then write the action list with owners and dates.
Common mistakes
- "Planning" in February, when many important year-end actions are no longer available
- Buying equipment in late December that ships in January, ordered isn't placed in service
- Spending $1 to save 30 cents: deductions reduce taxable income, not the tax bill dollar-for-dollar
Real-world examples
- S corporation owner wages must run through actual payroll during the calendar year, which is why reasonable-compensation reviews are a standard November topic.
- Retirement timing is uneven: some employer contributions can wait until the filing deadline, but elective deferrals generally must be set before year-end.
From a founder's point of view
Year-end planning is the meeting where the accountant's fee most obviously pays for itself, it's the only one held while the outcome can still change. After December 31, the same expertise can only describe the bill, not shrink it.
Rule of thumb
If the tax conversation happens after December 31, it's accounting. Before, it's planning. Book November.
