As 2025 comes to a close, both individuals and business owners can benefit from time invested in end-of-year tax planning. Preparing early helps reduce filing errors, speeds up refunds and ensures you have the most up-to-date information on deductions, credits, and income types.
Tax laws change often, and partnering with an experienced Roanoke CPA or accountant, like the team at Neely’s, can help you stay compliant while minimizing your liability.
Organize Your Finances and Records
Your first step in tax season prep is to get organized. For businesses, that means closing out accounts, updating payroll data, and performing a year-end inventory count. Individuals should verify income and withholdings and gather essential documents like W-2s, 1099s, mortgage statements, and receipts for deductible expenses.
Digital recordkeeping tools can make this easier and cloud-based software allows you to store, categorize, and share documents securely with your Roanoke CPA, ensuring nothing slips through the cracks when it’s time to file.
Review Your Financial Position
Next, take a high-level look at your 2025 financial performance. Businesses should review income statements, balance sheets, and cash flow reports to identify strengths and opportunities for improvement. Evaluate accounts receivable and vendor contracts to improve efficiency going into 2026. Individuals can review spending, savings, and investment performance to ensure their goals are on track. Reviewing this data now allows you to make adjustments, rather than reacting after the filing deadline.
Make Strategic Tax Moves
Year-end is prime time for strategic action. Consider deferring income or accelerating deductions to stay within a favorable tax bracket. Max out contributions to IRAs, HSAs, and retirement plans, and make charitable donations before December 31 to boost deductions.
Businesses may benefit from investing in new equipment, prepaying certain expenses, or exploring valuable credits like R&D or small-business healthcare credits. Don’t overlook energy-efficiency incentives, clean-vehicle credits, or education-related deductions that could apply to your situation.
Develop Next Year’s Plan
Use your year-end insights to set 2026 financial goals, such as reducing debt, boosting retirement savings, or cutting overhead. Schedule quarterly check-ins with your local accountant to track progress and stay current on evolving tax laws.
Get Professional Help
Every taxpayer’s situation is unique. Before making major financial moves, consult your hometown experts at Neely’s, who can tailor strategies to your personal or business needs.
Neely’s Accounting Services has supported Roanoke-area individuals and business since 2007 by offering big-city financial services with a hometown feel. Contact us today to get started.