— What Still Works (and What Doesn’t)”
The Clock Is Louder Than the Calculator
By mid-December, the tone changes.
Early December is hopeful.
Late December is frantic.
And the final week? That’s where panic meets regret.
Every year, business owners call us asking:
- “Can I still deduct this?”
- “Can I change that?”
- “What if I do it today?”
Some answers are yes.
Some are no.
Some are “you should have called us two weeks ago.”
This article cuts through the noise and answers the only question that matters right now:
What can I still legally do before December 31 — and what is already off the table?
Let’s separate fact from fiction, opportunity from fantasy, and strategy from wishful thinking.
The Big Rule of December Tax Planning
Here’s the rule most people learn too late:
Tax planning is about timing, not effort.
- You don’t get extra deductions for stress.
- You don’t get bonus write-offs for last-minute scrambling.
- You only get what the calendar allows.
December is not about doing everything.
It’s about doing the right remaining things.
What STILL Works Before December 31
These are legal, effective, and commonly overlooked moves that can still save real money — if you act now.
✅ 1. Prepaying Ordinary & Necessary Expenses
If you are cash-basis, this is still one of the cleanest moves available.
You can still prepay:
- Rent
- Insurance
- Software subscriptions
- Professional services
- Contractor retainers
- Coaching or training you will actually use
📌 Rule:
The expense must be ordinary, necessary, and reasonable — not a made-up December purchase.
💡 This reduces taxable income now without wasting money.
✅ 2. Retirement Contributions (Most Powerful Remaining Tool)
This is where high-income owners save the most.
Still available (depending on plan type):
- Solo 401(k)
- SEP-IRA
- Defined Benefit / Cash Balance plans
Even if paperwork finishes in January, the intent and structure must be established before year-end.
📈 Every dollar here reduces tax and builds future wealth.
✅ 3. Accountable Plan Reimbursements
If you already have — or can quickly implement — a written accountable plan, you can still reimburse:
- Home office
- Mileage
- Phone & internet
- Supplies
- Business-use portion of personal expenses
⚠️ Without a written plan, reimbursements are not compliant.
This single move often saves $5K–$15K for owner-operators.
✅ 4. Final Payroll Adjustments & Bonuses
Payroll is time-sensitive, but not gone.
You can still:
- Adjust owner compensation
- Issue deductible bonuses
- Add fringe benefits
- Correct under- or over-payments
- Fix withholding errors
🧠 Payroll touches taxes, compliance, and audit exposure — don’t wing this one.
✅ 5. Equipment Purchases (If They Actually Matter)
Section 179 and bonus depreciation are still available.
Smart purchases include:
- Computers
- Machinery
- Tools
- Work vehicles
- Office upgrades that increase efficiency
🚫 Bad idea: buying something you don’t need just to “write it off.”
A deduction is only helpful if the purchase makes business sense.
What Is TOO LATE (Stop Trying)
This is where many owners waste time — and sometimes create audit risk.
❌ 1. Changing Entity Type for This Tax Year
You cannot:
- Retroactively change your entity
- Convert structures and apply them backward
- Rewrite ownership history
Entity changes are forward-looking, not retroactive.
📌 Plan this for January — not December 29.
❌ 2. Backdating Expenses or Income
Let’s be crystal clear:
🚫 Backdating is illegal.
🚫 “I forgot to enter it” is not a defense.
🚫 Auditors know exactly what to look for.
If it didn’t happen this year, it doesn’t belong on this year’s return.
❌ 3. Fixing a Full Year of Bad Bookkeeping
You can clean things up.
You can correct errors.
But you cannot magically create perfect books overnight.
📌 The goal now is accuracy and defensibility, not perfection.
❌ 4. Creating Complex Trust or Estate Structures
Advanced legacy planning requires time, coordination, and documentation.
December is not the month for:
- Multi-layer trust planning
- Estate freezes
- Complex gifting strategies
Those belong in Q1 and Q2 planning.
The CFO Priority List (What to Do This Week)
If you do nothing else, do these six things:
1️⃣ Finalize books through November (ASAP)
2️⃣ Run a tax projection
3️⃣ Identify remaining deductible opportunities
4️⃣ Fund retirement strategically
5️⃣ Review payroll and owner comp
6️⃣ Schedule January planning now
These steps separate prepared owners from April panic callers.
Case Study: $31,400 Saved in 12 Days
Meet Eric, a Nevada-based consultant.
December 17:
- $280K taxable profit
- No retirement funding
- No accountable plan
- No payroll optimization
By December 29:
✔ $55K retirement contribution
✔ Accountable plan implemented
✔ Payroll corrected
✔ Expenses prepaid
💰 Tax savings: $31,400
🧠 Regret avoided: priceless
He didn’t “do everything.”
He did the right remaining things.
Why Waiting Costs More Than Acting
Every year, owners wait because:
- they’re busy
- they’re unsure
- they don’t want to deal with it
- they assume April will be fine
April is never fine for unprepared businesses.
December decisions echo for 12 months
Final Thoughts: This Is the Last Turn
You are running out of road — but not out of options.
December planning is not about panic.
It’s about precision.
The wealthy don’t ask, “Is it too late?”
They ask, “What still works?”
Now you know.
Lock in Your Final Strategy Session
At BizAccountants, we specialize in last-mile tax strategy — helping business owners make legal, defensible, high-impact decisions before the year closes.
BizAccountants is your trusted guide on the path to financial clarity and business success. We are a dedicated team of accounting professionals committed to delivering expert advice and comprehensive services tailored to meet the unique needs of small and medium-sized businesses. At BizAccountants, we believe in building strong, lasting relationships with our clients by providing transparent, strategic, and proactive support in areas such as tax planning, bookkeeping, payroll, and business consulting.
