Close Strong: Year-End Moves to Make Before December 31

Last month we talked about making the holiday rush count by turning seasonal shoppers into year-round regulars. If that plan is working, you're busy right now. That's a good problem to have. But it also means the end of the year can sneak up on you, and by the time the decorations come down, the window to make smart decisions about 2026 has already closed.

Here's the thing about November: it's the last full month where your decisions can still change this year's numbers. December disappears fast. Once January 1 arrives, most of what happened in 2026 is locked in. So before the calendar gets away from you, take an afternoon to close the year on purpose instead of by accident.

1. Check Your Numbers While You Can Still Act on Them

Back in August, many of you built a Q4 plan. In September, you put it into motion. Now is the time to see how it's holding up. Pull your year-to-date profit and loss statement and compare it to where you expected to be.

•         Revenue: Are you on pace for your Q4 goal? What's driving the gap, either way?

•         Expenses: Which costs grew faster than expected this year?

•         Cash flow: Remember the cash flow habits from July? Look at your cash position heading into January, which is a slow month for many businesses.

You don't need perfect books to do this. You need a clear enough picture to make decisions in the next six weeks.

2. Talk to Your Tax Professional Now, Not in March

Most small business owners meet with their tax preparer after the year is over, when the only thing left to do is report what already happened. A short conversation in November gives you options. Questions worth asking:

•         Equipment and purchases: If you were already planning to buy equipment, vehicles, or technology, does it make sense to buy and put it in service before December 31?

•         Timing income and expenses: Would it help to pay certain bills before year-end, or to time when you invoice for December work?

•         Retirement contributions: Are you taking advantage of a retirement plan for yourself, and do any plan setup deadlines fall before year-end?

•         Estimated taxes: Are your estimated payments on track, or will you owe more than you've set aside?

One caution: never buy something just for the deduction. A tax break that saves you a portion of the cost still costs you the rest. The best year-end moves are purchases you already needed, made at the right time.

3. Get Your Contractor Paperwork in Order

If you pay independent contractors, January will bring 1099 filing season. There's good news this year: for payments made in 2026, the reporting threshold for Form 1099-NEC rose from $600 to $2,000 per contractor. That means fewer forms for many small businesses, but you still need to know who crossed the line.

•         Total up what you've paid each contractor this year.

•         Collect any missing W-9 forms now, while contractors are still responsive, instead of chasing them in late January.

•         Note the deadline: because January 31, 2027 falls on a Sunday, 1099-NECs for 2026 are due Monday, February 1, 2027.

4. Clean Up the Books

A tidy year-end makes tax season cheaper, faster, and far less stressful. Before the holidays hit full speed:

•         Reconcile every business bank and credit card account through November.

•         Separate any personal expenses that slipped into business accounts (and vice versa).

•         Gather receipts for larger purchases and any vehicle or mileage records.

•         If you carry inventory, plan a year-end count.

•         Review unpaid customer invoices. Follow up on the ones you can collect, and ask your tax professional how to handle the ones you can't.

5. Put the January Dates on Your Calendar Today

The first weeks of the new year are full of deadlines. Add them now so they don't catch you off guard:

•         January 15, 2027: Fourth-quarter estimated tax payment for 2026

•         February 1, 2027: 1099-NEC and W-2 forms due (the usual January 31 deadline moves because it falls on a weekend)

A quick tip from a former IRS insider: after 44 years with the IRS, the most common problem I saw wasn't owners trying to cheat. It was good business owners who simply ran out of time and filed in a rush. A little organization in November prevents a lot of headaches in April.

Looking Ahead: Closing the Loop on 2026

When you close the year with intention, you start the next one with clarity. That's exactly where this series began back in January. Next month, we'll bring it full circle: looking back at everything we've covered in 2026 and turning those lessons into a focused plan for 2027.