Year-End Tax Planning Tips for Texas Small Businesses
Aug 13 2025 18:00
Why Year-End Planning Matters
Waiting until April to think about taxes can mean missed opportunities. By the end of the year, Texas small business owners in places like Austin, Cedar Park, Leander, and Lago Vista have a chance to make smart moves that reduce taxable income and improve cash flow. A few proactive steps in November or December can make a big difference come tax season.
Key Year-End Tax Strategies
Before December 31, consider these common strategies for lowering your tax liability:
- Accelerate expenses — Prepay rent, insurance, or other deductible costs to reduce this year’s income.
- Delay income — If possible, postpone invoicing until January to shift income into the next tax year.
- Fund retirement plans — Contributions to a SEP IRA, 401(k), or other retirement plan lower taxable income while supporting long-term savings.
- Buy equipment — Section 179 and bonus depreciation may allow you to deduct the full cost of qualified purchases made before year-end.
Texas-Specific Considerations
Because Texas has no state income tax, your focus should be on federal strategies and the state’s franchise tax threshold. Businesses under roughly $1.23 million in revenue file a “No Tax Due” report, but proper planning ensures you don’t miss deadlines or miscalculate taxable margin. This is especially important for fast-growing businesses around Austin and the Hill Country.
Benefits for Austin and Hill Country Entrepreneurs
Austin’s freelance and startup community, along with small businesses in Cedar Park, Leander, and Lago Vista, can benefit significantly from year-end planning. Whether it’s setting up an S Corporation election for the coming year or adjusting payroll to balance salary and distributions, taking time now prevents costly surprises later.
Let’s Make This Year Count
If you’re a business owner in Austin, Lago Vista, Cedar Park, or Leander, now is the perfect time to review your taxes before the year ends. Gray & Associates CPA can evaluate your current numbers, highlight savings opportunities, and give you a clear plan for filing season. Contact us today to put smart year-end strategies in place.
