Year-End Tax Planning Checklist for Bowling Green Small Businesses

October is the best month of the year for tax planning. You still have about 80 days to make decisions that change your tax bill. By February, all you can do is report what already happened.

Here's the checklist I walk through with small business owners around Bowling Green every fall.

1. Get your books current through September. You can't plan from numbers you don't have. If your books are behind, catch them up first. Everything below depends on it.

2. Estimate your full-year profit. Take your year-to-date profit and project the last quarter. Add any big jobs, contracts or seasonal swings you already know about.

3. Check your estimated tax payments. Compare what you've paid in quarterly estimates against what you'll likely owe. The fourth-quarter federal estimate is due January 15. Catching a shortfall now beats an underpayment penalty later.

4. Think about equipment purchases, but only if you need them. The One Big Beautiful Bill Act made 100% bonus depreciation permanent for qualifying property acquired after January 19, 2025. It also raised the Section 179 expensing limit to $2.5 million, indexed for inflation. A truck or piece of equipment you already planned to buy may be deductible this year. Never buy something just for the deduction, though. Spending a dollar to save 25 cents is still spending a dollar.

5. Review owner pay if you're an S-Corp. Make sure your salary is reasonable and has gone through payroll. More on that in our next post.

6. Clean up your contractor list. Collect W-9s now from anyone you paid this year. For payments made in 2026, the 1099-NEC reporting threshold is $2,000, up from $600.

7. Look at timing. Depending on your accounting method, you may be able to shift some income or expenses between years. Your tax preparer can tell you whether that makes sense for you.

8. Book a meeting with your tax preparer before December. They get busy fast. An hour in November is worth far more than a rushed call in March.

The bottom line

Year-end planning isn't about tricks. It's about accurate numbers early enough to make good decisions.

This post is general information, not tax advice. Talk with your tax professional about your specific situation.

Need your books caught up before year-end? Request a free consultation with Lines & Ledger in Bowling Green.