What You Should Be Reviewing Now to Avoid Year-End Surprises
While it seems like we just finished tax season, we’re nearly halfway through 2025 already. That makes now the perfect time to pause, review your tax position, and make sure you’re on track to avoid any nasty surprises come December. For small and mid-sized businesses, a proactive mid-year tax review isn’t just smart, it’s a key part of strategic financial planning.
Here’s what you should be looking at now to stay ahead:
Year-to-Date Financials
Start by reviewing your profit and loss statement and balance sheet. Are your revenue and expenses tracking as expected? Has anything changed significantly since the beginning of the year? A mid-year snapshot can help you:
- Spot unusual trends or variances
- Adjust your budget for the second half of the year
- Prepare for possible tax liabilities based on projected income
Estimated Tax Payments
If you’re making quarterly tax payments, now’s the time to reassess them. Is your income higher or lower than expected? Underpaying now could mean penalties later, while overpaying ties up cash you might need to run your business.
Major Purchases or Investments
Planning to upgrade equipment or invest in growth? Some expenses may be deductible or qualify for accelerated depreciation or Section 179 treatment. Understanding the timing and tax impact of these decisions now can help you maximize benefits later.
Compensation Strategy
Review how you’re paying yourself and any other owners. The right mix of salary and distributions can impact both your tax liability and retirement savings. Mid-year is a good time to course-correct if needed.
Retirement and Benefit Contributions
Are you maximizing contributions to retirement plans or other tax-advantaged benefits? It’s not too late to increase contributions, add a plan, or explore tax-saving options before the end of the year.
Why Mid-Year Matters
Waiting until Q4 (or worse, January) limits your options. Mid-year planning gives you time to make smart decisions, reduce your tax burden, and avoid the stress of year-end surprises.
Not sure where to start? We can help you review your company’s financial health and optimize your tax strategy year-round. Let’s check in now so you can move into the second half of the year with clarity and confidence.