As autumn rolls in, so do two critical priorities for business owners and households alike: filing extended returns and locking in year-end tax savings.
1) Final Call on Extended Returns
If you filed for an extension, the clock is almost out. For calendar-year filers:
- Form 1040 (individual return) – extension deadline is October 15.
- Form 1120 (C-corporation) – extension deadline is October 15.
Missed deadlines can trigger late-filing penalties and interest, so make this the week you finalize and file.
2) Why Q4 Is Prime Time for Tax Planning — and Why You Should Talk to a Professional
The fourth quarter is uniquely powerful: you can see how the year is shaping up, and there’s still time to act. With three months left, you can:
- Adjust income and expenses to manage your overall tax liability.
- Maximize retirement contributions and employer benefits.
- Leverage deductions and credits that require year-end action.
- Plan estimated tax payments to avoid underpayment penalties.
But here’s the key — don’t go it alone. Tax planning isn’t one-size-fits-all, and what works for one business could backfire for another. A qualified tax professional can help you:
- Spot hidden deductions and credits specific to your industry.
- Evaluate timing strategies that align with your goals.
- Model potential savings under different scenarios.
- Ensure compliance while optimizing your bottom line.
Once the calendar flips to January, many opportunities disappear. Schedule a 2025 tax planning session with your trusted advisor before year-end to make informed moves — not reactive ones.
3) Check Your Entity Strategy
Q4 is the right moment to ask: is your entity type helping or hurting your goals?
Considering an S-election or another structure? Now is the time to model scenarios, weigh reasonable compensation, payroll implications, and overall tax impact with your advisor so you enter next year aligned.
4) The Bookkeeping Myth: “Reconciled = Accurate”
You can have bank accounts that reconcile and still have incorrect books. Common traps:
- Misclassified transactions (e.g., capital vs. expense, owner draws vs. payroll).
- Uncleared items that mask timing differences.
- Missed accruals or job costs that distort profitability.
- Sales tax and payroll liabilities posted to the wrong accounts.
Accurate tax planning starts with reliable numbers. If your categories are off, your projections—and your tax bill—will be too.
5) Your Q4 Action Checklist
- File any extended returns (1040/1120) by October 15.
- Meet with your tax professional to model 2025 strategies before 12/31.
- Run a bookkeeping health check:
- Review your chart of accounts and high-risk categories.
- Verify owner pay, distributions, and loans are posted correctly.
- Reconcile and review for misclassifications and missing documentation.
- Evaluate entity structure with your tax advisor.
- Update cash forecasts and adjust estimated payments if needed.
6) When “Too Good to Be True” Probably Is
Shortcuts and gimmicks can create bigger problems later. If an approach sounds effortless and unusually generous, it likely is—until an IRS notice arrives. Choose accurate, defensible bookkeeping and planning over quick fixes.
Bottom line: Q4 is your window to protect profits, minimize taxes, and enter the new year with clarity. If you’re ready for professional bookkeeping and proactive tax planning—done right and designed to save you money—let’s talk. Here’s to a strong fourth quarter and a smarter start to next year.