Why Planning Now Matters
We may be more than halfway through the year, but there is still plenty of time to make thoughtful decisions before year-end.
For business owners, now is a good time to look at where things stand, identify potential tax or cash flow concerns, and think about what may be coming before December 31. Whether your year has gone exactly as planned or taken a few unexpected turns, planning now gives you more options than waiting until year-end.
Start With Where You Stand
A lot can change over the course of a year. Revenue or expenses may look different than expected, the business may be more or less profitable, or there may have been significant changes in operations.
A mid-year review can help identify areas that may need attention, including:
- Changes in revenue, expenses, or profitability
- Large or unusual transactions
- Estimated tax payments
- Owner compensation, distributions, or contributions
- Changes in payroll, staffing, or the business itself
The goal is to get a clearer picture of where the business stands now and identify anything that may need attention while there is still time to plan.
What’s Coming Before Year-End?
What a business plans to do during the rest of the year can be just as important as what has already happened.
Equipment purchases, hiring, financing, retirement contributions, owner distributions, or other significant investments can have both tax and cash flow implications. Talking through these decisions with your tax advisor before moving forward can help you understand the potential impact and whether timing should be part of the decision.
2026 Tax Changes May Create Planning Opportunities
Tax law changes may also affect planning opportunities for some businesses this year.
Qualifying businesses may have additional opportunities related to 100% bonus depreciation and increased Section 179 limits. Changes affecting pass-through businesses, research expenses, business interest deductions, and certain reporting requirements may also be relevant.
Not every tax change applies to every business. Reviewing these changes in the context of the business’s specific circumstances can help identify which provisions matter and whether there are opportunities to consider before year-end.
Don’t Forget the Connection to Personal Taxes
For partnerships and S corporations, what happens in the business can also affect the owners personally.
Business income, estimated tax payments, compensation, distributions, and other activity may need to be considered together. For S corporation owners, reasonable compensation is another important area to review before year-end.
Looking at the business and owner picture together can help identify potential issues while there is still time to address them.
Start the Planning Conversation Now
Year-end tax planning does not require business owners to have all the answers before meeting with their tax advisor. The purpose of planning is to look at where things stand, discuss what may be coming, and identify decisions or tax considerations that may deserve attention before December 31.
If you would like help reviewing where your business stands and identifying planning opportunities before year-end, reach out to RLA at 361-225-0220 or office@rlacpafirm.com to start the conversation.