The November Tax Planning Moves Business Owners Should Make Before December

By November, the guesses you made in January are out of date. Revenue might be running ahead of plan, expenses might have crept up, and your profit could look nothing like the projection you built months ago.

If you wait until December to look at taxes, you’ll have very little room to act. Some decisions need payroll changes or a bit of prep work, and that doesn’t happen in the last two weeks of the year. The good news is that by now you have enough data to estimate where you’ll land and see what still needs attention.

These are the five things I’d want every business owner to look at before December starts.

1. Figure out what the business will actually earn this year

Pull your year-to-date numbers and project how the year will finish. Don’t stop at revenue. Look at operating expenses, gross margins, customers who still owe you money, and any big costs you know are coming in December.

Higher revenue than last year doesn’t always mean higher taxable income. Costs often rise right along with sales, so you have to look at profit, not just the top line.

I’d compare your results to the original budget, then update the projection with real performance. That gives you a much better estimate of taxable income, and it tells you whether your current tax approach still makes sense.



Everything else on this list builds on that number.

2. Check S-Corp compensation before the last payroll

If you own an S-Corp and work in the business, review your pay before the final payroll of the year. The IRS expects shareholder-employees to take reasonable compensation for the work they do before taking distributions. What counts as reasonable depends on your role, the hours you put in, and what those services are worth.



November is a good time to look at what you’ve been paid, what you’ve taken as distributions, and whether anything needs to change. Fixing it later, while the books are being prepared for the return, is a lot harder.

Keep cash in mind as well. Raising your salary doesn’t only affect income tax. It changes your payroll taxes, and it takes money out of the business that you may need for operations.

3. Question planned purchases before you sign off

Equipment, technology, and vehicles can all produce deductions. But a purchase should start with a real need, not a tax bill.

Picture a growing service company whose owner has been eyeing more equipment. It’s been a profitable year, and the owner sees the purchase as a way to shrink taxable income. Before agreeing, I’d ask whether the equipment adds capacity, lowers costs, or brings in more revenue. I’d also line up the price, the financing cost, the expected return, and the cash on hand.

Tax treatment does matter. Depending on the asset and the depreciation rules, Section 179 or bonus depreciation may give you a deduction if you meet the requirements. For 2026, when the equipment is placed in service is important.



A deduction can make a good investment better. It can’t turn an unnecessary purchase into a smart one. After the purchase, the business should be in a stronger position than before.

4. Look again at retirement contributions and tax credits

This is also the time to review retirement contributions, employee benefits, and credits your business might qualify for.



If you already have a retirement plan, check how much you’ve contributed and how much more you can add. SEP-IRAs and 401(k)s follow different rules and deadlines, so confirm what’s still possible for 2026. If you’re thinking about starting a new plan, be aware that some deadlines come sooner than people expect.

On the credit side, depending on what your company does and who it employs, you may be eligible for the Research and Development Tax Credit or the Work Opportunity Tax Credit. Finding a qualifying expense or hire is only the first step. You’ll also need documentation, you’ll have to meet the eligibility rules, and you’ll have to hit the deadlines.

Looking now means you can act on these before the year closes, instead of stumbling on them while the return is being prepared.

5. Make sure you’ll have the cash to pay the tax bill

Cutting taxable income is only half the job. You also need enough cash to pay what you owe and keep operating without strain.

Once you have an estimated year-end liability, compare it to the estimated payments you’ve already made and see what’s left. Then think about upcoming payroll, vendor bills, debt payments, and any distributions you’re planning.

A profitable business can still run short on cash if too much has been spent or promised before taxes are accounted for. That’s where forecasting earns its keep. You can test a purchase, a pay increase, or a retirement contribution against the cash you’ll need over the next few months.

The goal is simple: make tax decisions that don’t leave you with a different financial problem.

Go into December with a plan

By the end of November, you should know your projected tax liability, which decisions need to be finished by December 31, and how much cash it will take to carry them out.

I believe business owners make better choices when tax planning is tied to how the business is really performing. At Straight Talk CPAs, we help owners understand where they stand, find ways to save on taxes, and build strategies that work for today and for the long run.

A conversation with your CPA this month can turn the last weeks of the year into a time of deliberate decisions rather than a scramble.

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