IRS End-of-Year Tax Moves Every Online Expert Business Owner Should Know

When it comes to taxes, many Experts & Coaches are still winging it—and that usually shows up as stress, missed deductions, or surprise tax bills.

The end of the year is one of the most powerful windows you have to clean things up, make smarter money decisions, and set yourself up for a smoother tax season!

Whether you’re already hitting six figures or simply want to feel more in control of your business finances, these five moves can make a meaningful difference.

1️⃣ Clean Up Your Books Before December 31

Messy books don’t just create stress—they cost you money. 💰

If transactions are uncategorized, accounts aren’t reconciled, or income totals don’t match reality, you’re likely missing deductions and making decisions based on incomplete information.

Year-end is the time to:

• Reconcile all bank and credit card accounts

• Categorize expenses accurately

• Confirm income totals are correct

This step alone often uncovers missed deductions and gives you a clear picture of how profitable your business actually is.

👉 Tools like Found, QuickBooks, Xero, or Wave can make this process far easier and less time-consuming.

Clean books = confident decisions.

2️⃣ Plan for Cash Flow, Not Just Taxes

Taxes are only one piece of the financial puzzle. 🧩

Smart business owners don’t just ask, “How do I reduce my tax bill?” They ask:

• How much should I be setting aside for taxes each month?

• What does my business need to operate comfortably?

• How can I smooth income and expenses next year?

Cash flow planning helps you avoid surprises, reduce stress, and make intentional decisions instead of reactive ones. When you know what’s coming in, what’s going out, and what’s reserved, tax season stops feeling like a financial ambush.

3️⃣ Stop Mixing Business & Personal Finances

This is one of the most common—and costly—mistakes entrepreneurs make. ‼️

Running business income and expenses through personal accounts creates confusion, increases audit risk, and makes it harder to claim deductions confidently.

What to do instead:

• Open a dedicated business checking account

• Use a separate business debit or credit card

• Run all business income and expenses through those accounts

This simple step creates clarity, protection, and far less stress at tax time.

4️⃣ Don’t Spend Money Just to “Get a Write-Off”

One of the biggest year-end mistakes entrepreneurs make is panic-spending in December just to lower their tax bill. 😫

A deduction doesn’t magically make an expense smart. Spending money you wouldn’t otherwise spend just to “save on taxes” often hurts cash flow more than it helps.

Instead, focus on strategies that actually build wealth:

• Catching up on bookkeeping

• Planning profit intentionally for the coming year

• Investing in systems or support that increase capacity and efficiency

Good tax planning is strategic—not emotional.

5️⃣ Know When an S Corp Can Save You Money (and When It Can’t)

An S Corp can be a powerful tax-saving tool—but only when it’s used at the right stage of business. 🧰

For many owners, once profits consistently reach around $60K–$100K, it may make sense to evaluate an S Corp election. The advantage comes from:

• Paying yourself a reasonable salary (subject to payroll taxes)

• Taking remaining profit as distributions not subject to self-employment tax

Done correctly, this structure can save thousands per year. Done too early—or without proper payroll—it can create more problems than it solves.

👉 If you operate as an S Corp, payroll is required. Platforms like Gusto make payroll, filings, and compliance straightforward and hands-off.

👉 Need help setting up your S Corp? Check out My Company Works*.

Finish the Year Like a CEO or your Online Expert Business, Not a Freelancer

The business owners who feel calm at tax time aren’t guessing—they’re intentional.

They:

• Keep clean, accurate books

• Plan cash flow proactively

• Separate business and personal finances

• Make strategic—not reactive—tax decisions

• Use the right structure at the right time

A few focused moves before year-end can save money, reduce stress, and put you firmly in control going into the new year to