As a small business owner, you juggle a lot: clients, invoicing, operations, payroll, and hopefully remembering to eat lunch on most days. So when someone mentions year-end tax planning, it’s easy to think, “Great, another thing to add to the to-do list.”

But a few simple, strategic moves can meaningfully reduce your tax bill and set you up for a more profitable year ahead.

The good news is, you don’t need a finance degree to make them work for you. Here are five tax-smart steps to consider.

Set up or contribute to a retirement plan

A retirement plan is one a great way to reduce your tax bill while keeping the money in your own proverbial pocket.

If you already have a plan, that’s great! Year-end is the perfect time to make additional contributions. If you don’t, consider setting one up now. Options like SEP-IRAs, 401(k)s, and SIMPLE IRAs can reduce your taxable income while helping you build long-term financial security.

Every dollar you contribute is a dollar you don’t pay taxes on right now. The retirement plans startup costs tax credit can help offset the cost of setting up and contributing to the plan for the first five years.

Defer or accelerate income & expenses

Income timing is an easy and extremely effective year-end tax-saving strategy, but few small business owners are aware of it.

If your income is unusually high this year and you expect next year to be lower, you might be able to defer income until next year. That could mean holding off on sending a few invoices until January or pre-paying next month’s rent.

On the flip side, if this year has been slower and you expect growth in the coming months, accelerating income into the current year might work in your favor. As a cash-basis taxpayer, you can make it happen by following up on outstanding invoices from December or delaying payments to vendors.

You’re managing when you pay tax, not whether you pay it. A little timing strategy can help smooth your taxable income and reduce your tax liability in higher-income years.

Consider large equipment or software purchases to use Section 179 or bonus depreciation

If you plan to buy equipment or invest in software for your business, purchasing before year-end could unlock some serious savings.

Using either Section 179 or bonus depreciation, you can deduct all or most of the cost of qualifying purchases up front rather than depreciating them over several years. This can dramatically lower your taxable income. Just don’t buy something you don’t actually need for the sake of a tax write-off. A tax deduction is great, but cash in your bank account is better.

Contribute to your health savings account (HSA)

If you’re enrolled in a high-deductible health plan (HDHP), a health savings account is a great financial tool to save for out-of-pocket healthcare expenses and get tax benefits. HSAs are triple tax-advantaged: you get a deduction for contributing, the money grows tax-free, and withdrawals are also tax-free as long as you use them for qualified medical expenses.

If you’re reading this after year-end, you might still have time to max out your HSA contributions. The deadline to make contributions for the previous tax year is April 15.

Give to charity

Year-end is a popular time to support organizations that matter to you, and the tax code makes it a little easier to do so.

If you itemize deductions, charitable contributions can reduce your taxable income. That includes donations by cash, check, or credit card, appreciated securities, and non-cash donations such as inventory or equipment.

Starting in 2026, you’ll be able to deduct up to $1,000 of cash donations, even if you don’t itemize.

Just keep good records to support your deduction. In most cases, you’ll need written communication from the organization that includes the name of the organization, the amount and date of your contribution, and whether the organization provided any goods or services in exchange for the gift.

Small steps, big impact

You don’t have to make all of these year-end tax-saving moves. Even one or two can create meaningful savings and help you start the new year on solid financial footing.

If you’re unsure which strategies fit your situation, reach out to NewWay Accounting. We’re happy to help walk through strategies to help you keep more of what you earn this year and in the long run.