What You’ll Learn:

• Why December is a crucial month for tax preparation
• Key tasks that help you avoid January stress
• Practical steps Washington small businesses can act on now
• How a year-end review supports a smoother start to 2026 

A practical look at tax readiness as the year wraps up

As December settles in across Tacoma and the South Sound, many small business owners are thinking about the projects they still need to finish before the calendar turns. Taxes rise to the top of that list for good reason. When documents, receipts, and reports aren’t organized, tax season becomes much more stressful than it needs to be. 

This time of year gives you the chance to pull things together, understand where your numbers stand, and make sure everything is ready for tax filing. 

Why December preparation matters

Tax season carries deadlines that arrive quickly once the new year starts. A little attention in December helps you avoid digging through old emails, chasing down missing statements, or trying to remember transactions from ten months ago. 

For many Tacoma and Pierce County businesses, the challenge isn’t the complexity of the work—it’s that the year has been busy, and bookkeeping tasks sometimes take a back seat. Taking a moment now helps you spot missing information, confirm estimated tax payments, and ensure your accounts match what your CPA or tax preparer will need.

5 Steps to Strengthen Year-End Tax Readiness

Bring your bookkeeping fully up to date

If bank reconciliations, credit card entries, or vendor bills are behind, December is the time to catch up. Clean, accurate books prevent errors and help you understand your true profit for the year. This creates a solid foundation for tax preparation and helps you identify any final adjustments that need attention before December 31.

Review income, expenses, and estimated tax payments

Review year-to-date totals to get a clear picture of your taxable income. Many business owners discover they need to make a final estimated payment—or confirm that prior payments were on track. A quick review now helps reduce surprises later and supports planning for Q1.

Organize receipts, invoices, and documentation

Digital or paper, gather everything your tax preparer may ask for. This includes major purchases, mileage logs, contractor payments, and business-related subscriptions. Having these documents organized now speeds up preparation in January and reduces back-and-forth requests.

Confirm major decisions or purchases before year-end

If your business is considering equipment purchases or other deductible expenses, December is often the window for making those decisions. Reviewing your numbers helps you determine if these purchases fit your budget and support your operational needs.

Check vendor and contractor information

Make sure you have accurate W-9s on file and confirm which contractors were paid $600 or more during the year. This sets you up to prepare 1099s promptly in January and avoids delays when deadlines approach.

Closing out the year with clarity

A strong finish to December gives your business a smoother start to the new year. With your books updated, documents organized, and tax obligations understood, you can avoid last-minute stress and focus on planning ahead. If you’d like support reviewing your financials before the year ends, J. Ott Business Solutions is here to help you prepare with confidence. Reach out to us today for a confidential consultation.