Owning a business means wearing many hats. You are the leader, the decision-maker, and the one responsible for guiding both operations and finances. As the year winds down, one responsibility deserves your immediate attention: year-end tax planning for business owners.

Too many entrepreneurs wait until tax season to look back at their numbers.

By that point, opportunities have already slipped away. The final months of the year are when business owners can make proactive moves that reduce tax liability, strengthen cash flow, and create stability going into the new year.

At Cornerstone Capital Advisors, we specialize in helping business owners prepare strategically. This guide gives you a checklist of actions to take now so you can close the year with confidence.

Start your year-end planning today and step into 2026 with clarity, confidence, and control.

Strengthen Your Position with Income and Expense Planning

One of the simplest and most effective tax moves is timing income and expenses. Accelerating certain expenses before December 31, such as purchasing equipment, stocking up on supplies, or awarding employee bonuses, may reduce taxable income for the current year.

On the other hand, if your business has already faced a high tax burden this year, deferring income into January could spread revenue more evenly across tax years.

Action Step: Review cash flow with your advisor to decide whether accelerating expenses or deferring income gives your business the greater advantage.

Reduce Liability by Maximizing Deductions

Every deduction you capture is money kept in your business. Section 179 allows many equipment purchases to be written off in the year of purchase, while depreciation schedules can be reviewed for additional opportunities.

Business owners often overlook deductions on travel, vehicles, software, and professional services. Reviewing these categories ensures nothing is left behind.

Action Step: Create a checklist of deductions your business qualifies for and compare it with your year-to-date expenses. Fill in any gaps before year-end.

Build Long-Term Value with Employee Benefits

Retirement plans are one of the most effective ways to lower taxes while creating value for your employees. Contributions to SEP IRAs, SIMPLE IRAs, or 401(k) plans reduce taxable income for the business and show your team you are invested in their future.

Even small year-end contributions can create meaningful tax benefits while supporting employee retention and morale.

Action Step: Review your current employee retirement plan and consider making additional contributions before December 31.

Improve Cash Flow with HSA Contributions and Insurance Reviews

If your business offers healthcare benefits, employer contributions to Health Savings Accounts (HSAs) are deductible. They also give employees more flexibility with medical expenses, which can improve satisfaction and retention.

This is also the time to review insurance premiums for the upcoming year. Adjustments can create deductions and ensure your business is covered appropriately.

Action Step: Evaluate participation in your HSA program and adjust employer contributions to maximize tax benefits.

Create Savings with Tax-Loss Harvesting

If your business holds investments, this is the time to evaluate performance. Selling underperforming assets to offset capital gains can reduce your overall tax liability.

Tax-loss harvesting not only saves money now but also positions your business portfolio more strategically for the year ahead.

Action Step: Review your investment portfolio with your advisor to identify opportunities for harvesting losses before December 31.

Gain an Edge with State Incentives and Credits

Taxes vary from state to state, and many businesses overlook the credits and incentives available locally. Programs may exist for renewable energy projects, employee training, hiring, or research and development.

These opportunities often expire at the end of the year, so reviewing them now ensures your business does not miss out.

Action Step: Ask your tax planning advisor to review your eligibility for state or regional credits that could benefit your business.

Set the Stage for a Strong 2026

Year-end planning is not only about reducing this year’s liability. It is also about preparing for the year ahead. Updating financial goals, mapping out retirement contributions, and reviewing your investment strategy keep your business aligned with long-term growth.

Action Step: Schedule a forward-looking planning session with us to connect today’s tax strategies with your company’s vision for the future.

Finish the Year on Strong Financial Ground

December should not be a time of stress and last-minute scrambling. With a clear plan in place, you can:

• Reduce your tax bill and preserve more capital.
• Reward your employees while building loyalty.
• Strengthen cash flow going into the new year.
• Position your business for long-term success.

At Cornerstone Capital Advisors, we work with business owners every day to make these strategies practical and effective. Our advisors understand not only tax law but also the unique pressures of running a business.

Turn Year-End Stress Into Strategic Advantage

Deadlines are approaching, and waiting until filing season will only limit your options. Acting now means less stress, more savings, and greater confidence that your business is on track.

Connect with us today. Let us make your year-end planning simple, strategic, and focused on your success.