Stop Wasting Time on Year-End Tax Prep: 7 Quick Moves Every Small Business Should Make Before December 31

Let's be honest, December is already here, and if you're like most small business owners, you're probably feeling that familiar year-end panic creeping in. You know, that sinking feeling when you realize tax season is just around the corner and you haven't touched your books since... well, let's not talk about when.

But here's the thing: you don't need to spend weeks drowning in paperwork to get your tax prep sorted. With just 26 days left in 2025, you can still set yourself up for a stress-free tax season by focusing on these seven quick, high-impact moves.

Trust me, I've been helping small business owners navigate this exact situation for years, and these strategies will save you both time and money when April rolls around.

Move #1: Schedule Your Tax Strategy Meeting (Like, Yesterday)

First things first: if you haven't already, you need to get on your accountant's calendar NOW. December is when tax professionals start booking up faster than concert tickets, and waiting until January means you'll be competing with everyone else who procrastinated.

But this isn't just about booking an appointment. Use this meeting to discuss last-minute tax planning opportunities that can only happen before December 31st. Things like:

• Whether you should accelerate or defer income

• Equipment purchases that qualify for Section 179 deductions

• Retirement contributions that can reduce your 2025 tax bill

• Strategic business expenses you might have overlooked

Pro tip: Come prepared with your current profit and loss statement (even if it's rough) and a list of any major purchases or changes to your business this year. This helps your tax pro give you actionable advice instead of generic suggestions.

Move #2: The 30-Minute Financial Document Roundup

You know all those bank statements and receipts scattered across your desk, email inbox, and that mysterious shoebox? It's time for a focused 30-minute gathering session.

Set a timer and collect:

• All bank statements from January through November 2025

• Credit card statements for business accounts

• Any cash receipts you've been saving

• PayPal, Stripe, or other payment processor statements

• Loan statements and financing documents

Don't worry about organizing everything perfectly right now: just get it all in one place. You can use a simple folder system: "Income Stuff," "Expense Stuff," and "I Don't Know What This Is Stuff." Seriously, that last category is more common than you think.

The goal here isn't perfection; it's completeness. Better to have everything messy in one spot than to miss important documents entirely.

Move #3: Hunt Down Your 1099 Forms (Before They Hunt You Down)

If you're a freelancer, consultant, or service-based business, you've probably received income that requires 1099 forms. The IRS expects these forms to match your reported income, so missing them is like leaving money on the table: except in reverse.

Here's your 1099 hunting checklist:

• Contact clients who paid you $600 or more to confirm they're sending 1099-NEC forms

• Check with payment processors (they send 1099-K forms for transactions over $600)

• Look through your email for electronic 1099s from previous years' clients

• Review your client list and cross-reference with your income records

Don't wait for these forms to magically appear in your mailbox. Being proactive now saves you from the January scramble when you're trying to remember who paid you what.

Move #4: Do the "Quick and Dirty" Income Calculation

You don't need fancy accounting software to get a ballpark figure of where you stand financially. Grab a calculator (or your phone) and do some quick math:

Total Business Income: Add up all deposits to your business accounts, plus any cash payments you received.

Total Business Expenses: Add up all legitimate business expenses: office supplies, travel, meals, equipment, subscriptions, insurance, etc.

Net Profit: Subtract expenses from income.

This quick calculation gives you a rough idea of what you'll owe in taxes and helps you spot any red flags. If your expenses seem unusually high compared to income, double-check that you're not including personal expenses. If your profit is higher than expected, you might have missed some deductible expenses.

Move #5: The Last-Minute Deduction Power Play

December is your last chance to reduce your 2025 tax burden through strategic spending and contributions. Here are the moves that pack the biggest punch:

Equipment and Business Purchases: If you've been putting off buying that computer, office furniture, or business equipment, now might be the time. Thanks to Section 179 deductions, you can often deduct the full purchase price in the year you buy it.

Retirement Contributions: Max out your SEP-IRA, Solo 401(k), or other retirement accounts. These contributions reduce your taxable income dollar for dollar.

Charitable Donations: Any donations made before December 31st count for 2025 taxes. This includes cash donations, donated goods, and even mileage driven for volunteer work.

Business Subscriptions and Services: Pre-pay for annual subscriptions, renew professional memberships, or invest in business education that you'll use next year.

Remember: Only spend money on things you actually need and would buy anyway. The tail shouldn't wag the dog when it comes to tax strategy.

Move #6: Clean Up Your Business Records (The Speed Version)

You don't need perfect books, but you do need complete books. Spend an hour or two doing a quick review:

• Check that all major income sources are recorded

• Verify that business credit card charges are categorized

• Make sure any personal expenses accidentally charged to the business are moved to personal

• Update any missing vendor information for 1099 reporting

If you use accounting software like QuickBooks, run a quick Profit & Loss report for January through November. Look for any months with unusually high or low income: these often indicate missing transactions or categorization errors.

For those still using spreadsheets or paper records, focus on making sure your income and expense totals are reasonable and that you have backup documentation for major items.

Move #7: Handle the Compliance Housekeeping

Every business has certain year-end requirements that are easy to forget but expensive to miss. Here's your speed-run checklist:

Business License Renewals: Check if your business license, professional certifications, or permits expire at year-end.

Annual Corporate Filings: If you're an LLC or corporation, verify that your annual report has been filed with your state.

Employment Tax Deposits: Ensure all quarterly payroll tax deposits are current if you have employees.

1099 Preparation: If you paid any contractors $600 or more, you'll need to send them 1099-NEC forms by January 31st. Start gathering their information now.

Sales Tax Returns: File any pending monthly or quarterly sales tax returns: these deadlines don't pause for the holidays.

The key here is to tackle these items while you still have time to fix any issues without penalties or rush fees.

Your December Action Plan

Here's how to knock out these seven moves without overwhelming yourself:

Week 1 (December 5-12): Focus on Moves #1, #2, and #3. Schedule your tax meeting, gather your documents, and hunt down those 1099s.

Week 2 (December 13-19): Tackle Moves #4 and #5. Do your quick income calculation and make any strategic year-end purchases or contributions.

Week 3 (December 20-26): Handle Moves #6 and #7. Clean up your records and take care of compliance items.

Week 4 (December 27-31): Review everything, make any final adjustments, and celebrate the fact that you're ahead of 90% of small business owners.

The beauty of this approach is that each move builds on the previous one, and none of them require perfect information to get started. You're not trying to create museum-quality financial records: you're just making sure nothing important falls through the cracks.

By taking these seven quick actions now, you'll walk into 2026 knowing exactly where your business stands financially. No more shoebox anxiety, no more sleepless nights wondering if you missed something important, and no more paying your accountant rush fees because you waited until the last minute.

Your future self will thank you when tax season arrives and you're the calm, organized business owner who actually enjoys the process instead of dreading it.