The last three months of the year decide how calm your tax season will be. By January, the year is closed and most of what shapes your return is already set.

Here is the short answer. Year-end tax planning comes down to three things: get your books current, know what you will owe, and handle the deadlines that land around the new year before they sneak up on you.

What is year-end tax planning for a small business?

It is a review of the year’s numbers while there is still time to act on them. You look at income and expenses so far, estimate the rest of the year, and line up the payments and paperwork due around January.

It is not the same as filing your return. Filing happens in the spring. Planning happens now, while the year can still change.

Are your books ready? (Do this first)

Every other step depends on current numbers. Before you estimate anything:

  • Separate personal spending from business spending.
  • Match payroll records to what was actually paid.
  • Categorize anything sitting in “Client to Advise” or “Ask My Accountant.”
  • Reconcile your bank and credit card accounts through the most recent month.

If you are several months behind, a catch-up bookkeeping project comes first. Still on QuickBooks Desktop? Year-end is a good time to plan the move to QuickBooks Online, so the new year starts clean in the new account.

What is still due before the year ends?

If you pay estimated taxes, the last payment for 2026 falls just after the new year:

  • Federal: the fourth 2026 estimated tax payment is due January 15, 2027.¹
  • Virginia: the fourth 2026 installment on Form 760ES is also due January 15, 2027.²

If your income changed a lot this year, your earlier estimates may be off. Current books let you adjust the last payment instead of guessing. Our post on Q3 estimated taxes explains how estimated payments work and what a missed one can cost.

What do you need for 1099s and worker status?

If you paid contractors this year, January paperwork starts now.

  • Collect W-9s now. Chasing a contractor’s tax ID in late January is how deadlines get missed.
  • The threshold changed. For payments made in 2026, you file a Form 1099-NEC for a non-employee you paid $2,000 or more. Before 2026 the threshold was $600.³
  • The deadline is early. Form 1099-NEC has to be filed with the IRS and sent to the recipient by January 31.⁴
  • Check worker status. Treating an employee as a contractor is expensive to fix later. Our post on 1099 vs. W-2 worker classification details the difference.

What should you gather for your tax preparer?

A ready-to-go folder saves time and fees in the Spring. Start collecting:

  1. Reconciled books through December 31 (profit and loss, balance sheet).
  2. Last year’s business and personal tax returns.
  3. Payroll reports and year-end payroll forms.
  4. A list of every contractor you paid, with their W-9s.
  5. Loan statements and any year-end balances.
  6. Records for equipment or vehicles bought or sold this year.
  7. Copies of the estimated tax payments you made, federal and Virginia.

Should you talk to your tax preparer before December 31?

Yes, if a big decision is on the table. Buying equipment, changing how you pay yourself, or putting money into a retirement plan can all affect your return. The rules and limits change, and some have changed recently, so ask before you act, not after. Bring your current numbers to that conversation.

Get your Richmond books ready for taxes before year-end

P&L Business Solutions helps small businesses in Richmond, Chesterfield, and Midlothian, Virginia in getting their books ready for tax season. We work with CPAs and Enrolled Agents to get your taxes filed on time once your books are ready for filing.

Call 804-561-1600 or book a time to make your year-end tax preparation a breeze.

  1. Internal Revenue Service. “2026 Form 1040-ES, Estimated Tax for Individuals.” irs.gov
  2. Virginia Department of Taxation. “2026 Form 760ES, Estimated Income Tax Payment Vouchers for Individuals.” tax.virginia.gov
  3. Internal Revenue Service. “Am I required to file a Form 1099 or other information return?” irs.gov
  4. Internal Revenue Service. “Instructions for Forms 1099-MISC and 1099-NEC.” irs.gov