The Tax Strategies Business Owners Need to Prep Before the New Year – Ep. 244

Heading into tax season unprepared can be costly—missed deductions, lost paperwork, and sometimes, a surprise check to the IRS. But it doesn't have to be that way! In this episode, Danielle Hayden, reformed corporate CFO and founder of Kickstart Accounting, Inc., shares the ultimate year-end checklist every business owner needs to save on taxes, protect their business, and walk confidently into tax season.

From organizing your paperwork to making smart tax moves and maximizing personal financial strategies, Danielle gives you practical steps you can take before December 31st that can make a big difference in the new year.

Key Takeaways:

• Get Your Paperwork in Order: Before December 31st, ensure all your partnership agreements, legal documents, and W9s are signed, stored, and ready. It'll save you major headaches during tax season.

• Use the January 1st Advantage: The first of the year is the best time to make big structural changes, like starting an LLC, switching payroll providers, or filing for S Corp status. This avoids partial-year filings and confusion.

• Pay Your Kids (Properly!): You can pay your children for legitimate work in your business and enjoy tax advantages while teaching them financial responsibility.

• Take Advantage of Accountable Plans: Reimburse yourself consistently for things like your home office and cell phone. It's an important benefit that shouldn't be skipped, even in slower years.

• Review Personal Tax Opportunities: Before year-end, check your 529 plans, HSA, and FSA balances and make contributions to maximize your deductions and savings.

• Max Out Retirement Contributions: Don't forget to fund your retirement plan! Whether it's a 401(k), SEP IRA, or solo 401(k), you're building wealth beyond your business.

• Meet with Your Tax Accountant Early: Schedule a pre-tax-season check-in to confirm your estimated payments, review your strategy, and avoid surprise penalties.

• Don't Spend Money Just to Save on Taxes: Avoid the trap of prepaying expenses or buying things you don't need. Focus on building a healthy, sustainable, profitable business instead.

Topics Discussed:

(00:00) Intro + Critical Paperwork to Get In Order for Year-End

(02:24) Setting Up or Switching Your Business Structure for 1/1: LLC, Payroll, S Corp Election

(05:02) Paying Your Kids the Correct Way for Tax Benefits

(06:36) Accountable Plan Reimbursements

(07:24) Collecting W9s from Contractors

(08:13) Personal Tax Strategies: 529 Plans, HSAs, FSAs, and Health Insurance

(11:13) Retirement Contributions and Your Different Options

(12:31) Meeting with Your Tax Accountant

(13:28) Smart Tax Planning Strategies to Avoid IRS Penalties and Spending Profit When You Don't Need To

(15:36) Itemized Deductions, Charitable Contributions, and the Big Beautiful Bill's Effect on Depreciating Equipment

(17:17) Outro: Kickstart's Free Year-End Tax Checklist, Like, Share and Subscribe!

Resources:

Free Download | Ultimate Year-End Tax Checklist

Related Episodes:

• Entrepreneurs: Should You Go S-Corp? Pros & Cons + Expert Insight – Ep 115

• Can You Legally Hire Your Children?: How to Pay Your Kids, Get Tax Advantages, & Create Generational Wealth – Ep 137

• Beyond the Business: Preparing for a Secure Retirement – Ep 188

KSA Tax Partners | https://ksataxpartners.com/

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