April is when most small business owners think about taxes. December is when the real savings happen. Once the year closes, most planning options are off the table — you're just reporting what already occurred. Here are five moves Georgia owners should make before December 31 to shape the tax bill they'll see in April.

1. Accelerate deductible expenses

If your business is having a strong year, prepay legitimate expenses before December 31. Renew software subscriptions, restock supplies, pay January's rent in December, book Q1 professional services now. Cash-basis businesses can generally deduct what they pay this year, even if the benefit stretches into next year. Only do this when you actually need the expense — a deduction still costs you $1 to save roughly $0.25–$0.35 in tax.

2. Fund a retirement plan

A SEP-IRA or Solo 401(k) is one of the biggest legal tax shelters available to small business owners. Contribution limits change every year — verify current maximums on the IRS retirement plans page before you fund. Set up the plan before year-end even if you make the actual contribution before your tax filing deadline.

3. Take advantage of Section 179 and bonus depreciation

If you've been planning to buy equipment — vehicles, computers, machinery, office furniture — buying and placing it in service before December 31 lets you deduct a large portion in the current year under Section 179 or bonus depreciation rules. Note that bonus depreciation is phasing down under current law (60% in 2024, 40% in 2025, and further each year absent Congressional action), so run the numbers for the current tax year specifically. "Placed in service" is the key phrase: the asset must be ready and available for use.

4. Reconcile owner compensation (S-Corps especially)

If you elected S-Corp status, the IRS expects you to pay yourself a reasonable salary through payroll. December is your last chance to correct if your salary is too low compared to distributions. A late payroll run and a year-end bonus can bring you into compliance and avoid a reclassification during an audit.

5. Clean up the books before January

The single most expensive tax mistake we see is showing up at tax time with a shoebox of receipts and hoping. Reconcile your bank and credit card accounts through December. Categorize transactions. Chase down missing receipts while vendors still have them. Every hour of cleanup you do in December saves several hours (and often thousands in missed deductions) in March.

Bonus: Georgia-specific items to check

• Georgia annual registration is due by April 1 — pay early and keep your entity in good standing.
• Sales and use tax reconciliation — especially if you sell across county lines or online.
• Local Occupational Tax Certificate renewals in most Georgia cities and counties.
• Q4 estimated tax payment is due January 15 — plan the cash now, not in a panic.

If an entity election is on your December list, work the numbers first with our LLC vs. S corp comparison for Georgia owners.

Not sure where to start? Take the free RMS Business Success Index™ or explore our tax planning service.