Don’t Wait Until December to Think About Taxes: Why October Is the Time for Tax Planning

If you own a business, are self-employed, have investments, or simply want to avoid an unpleasant surprise at tax time, December may be too late to start thinking about your taxes.

October is one of the best times of the year to meet with your CPA and begin year-end tax planning.

Why?

Because there are still several months left in the year to review your financial situation, identify potential tax-saving opportunities, correct problems, and make strategic decisions before December 31.

Once the calendar turns to January, many of those opportunities may be gone.

At CPA Tampa, we help individuals and small business owners throughout Tampa Bay, Hillsborough County and Pinellas County take a proactive approach to their taxes.

Instead of waiting until tax season to ask, “How much do I owe?” October is the time to ask a much better question:

“What can I do now to improve my tax position before the end of the year?”

Tax Preparation and Tax Planning Are Not the Same Thing

One of the biggest mistakes taxpayers make is assuming tax preparation and tax planning are the same service.

They are not.

Tax preparation looks backward.

Your CPA prepares a tax return based primarily on financial decisions that have already been made.

Tax planning looks forward.

Tax planning allows you and your CPA to review your current financial position while there is still time to potentially make changes.

By March or April, your CPA may be able to tell you what you could have done differently.

In October, there may still be time to actually do it.

Why October Is an Important Month for Tax Planning

October gives business owners and individuals something extremely valuable:

Time.

There are still roughly three months remaining before year-end.

That creates an opportunity to review your income, expenses, withholding, estimated taxes, retirement planning and other financial decisions before December 31.

Waiting until late December can create unnecessary pressure. Waiting until tax season may eliminate certain planning opportunities altogether.

A tax planning meeting in October can give you a clearer picture of where you stand and what actions may be worth considering.

1. Estimate Your 2026 Tax Liability Now

Do you have an idea what your 2026 tax bill may look like?

Many taxpayers do not.

That can be particularly dangerous for:

– Small business owners
– S corporation owners
– LLC owners
– Independent contractors
– Consultants
– Real estate investors
– Self-employed professionals
– Individuals with significant investment income
– Taxpayers whose income changed substantially during the year

A CPA can review your year-to-date income and expenses and help project what the remainder of the year may look like.

That projection can help identify potential tax issues before they become tax surprises.

2. Review Your Business Income and Expenses

If you own a Tampa Bay business, October is a good time to examine how your business is performing.

Start with the basics.

How much revenue have you generated?

How much have you spent?

What does your projected profit look like?

Are your books current?

Are all legitimate business expenses being properly recorded?

Accurate bookkeeping is an important part of effective tax planning because decisions are only as good as the financial information behind them.

If your bookkeeping is months behind, now is the time to get caught up.

3. Look for Potential Tax Deductions Before Year-End

Business owners frequently focus on deductions during tax preparation.

A better approach is to review potential deductions while the tax year is still open.

Depending on your circumstances, your CPA may want to review areas such as:

– Business expenses
– Equipment purchases
– Business vehicles
– Office expenses
– Professional fees
– Insurance
– Employee expenses
– Marketing expenses
– Retirement contributions
– Charitable contributions
– Other deductible expenditures

The goal should not be to spend money simply to generate a deduction.

The goal is to make smart business and financial decisions while understanding their potential tax consequences.

4. Review Estimated Tax Payments

Business owners and self-employed taxpayers often make quarterly estimated tax payments.

But your income may not remain consistent throughout the year.

Perhaps business has been stronger than expected.

Perhaps you landed a major new customer.

Maybe you sold an investment or property.

Or perhaps revenue declined.

If your financial situation has changed, the tax estimates you made earlier in the year may no longer reflect your actual 2026 income.

An October tax review can help determine whether your current payments appear to be on track.

5. Review Your Retirement Strategy

Retirement planning and tax planning often overlap.

October provides an opportunity to discuss retirement contributions with your CPA and financial professionals before the end of the year.

For business owners, this can be especially important.

Your business structure, income, employees and existing retirement plan can all affect the strategies available to you.

Do not wait until you are preparing your return to start asking what you could have contributed months earlier.

6. Review Major Purchases Before You Make Them

Thinking about buying equipment, technology, a vehicle or other significant business assets?

Before making a major purchase, speak with your CPA.

The timing and tax treatment of a purchase can matter.

Your accountant can help you understand the potential financial and tax implications so that the purchase is based on the needs of your business, not a last-minute attempt to create a deduction.

7. Business Owners Should Review Their Compensation

For owners of certain business entities, compensation and payroll decisions can have important tax consequences.

October is a good time to review:

– Owner compensation
– Payroll
– Distributions
– Employee bonuses
– Benefits
– Retirement contributions
– Year-end payroll reporting

Problems discovered in April can be much more difficult to correct than issues identified while the year is still open.

8. Make Sure Your Bookkeeping Is Ready for Year-End

Tax planning becomes much harder when your bookkeeping is incomplete or inaccurate.

If your QuickBooks file has not been reconciled, transactions are improperly categorized, receipts are missing, or business and personal expenses have become mixed together, October is the time to clean things up.

Getting your books organized now can also make tax preparation much easier.

Instead of scrambling during tax season, you can enter the new year knowing your financial records are already in better shape.

9. Review Any Major Financial Changes From 2026

Your tax situation can change significantly from one year to the next.

Talk with your CPA if you experienced a major event during 2026, including:

– Starting a business
– Selling a business
– Buying or selling real estate
– Selling investments
– Receiving significant investment income
– Changing jobs
– Retiring
– Receiving an inheritance
– Moving
– Getting married or divorced
– Having or adopting a child
– Experiencing a major increase or decrease in income

Do not assume your tax situation will look the same as last year.

10. Small Business Owners Should Think Beyond This Year’s Tax Return

Good tax planning is not simply about finding another deduction.

It should be part of a larger financial strategy.

For a growing small business, your CPA can help you think about questions such as:

Is your current business structure still appropriate?

Is your bookkeeping giving you useful financial information?

Are you setting aside enough money for taxes?

Is your payroll structured correctly?

How is your cash flow?

Are there changes you should consider before next year?

A good CPA relationship should help you make better decisions throughout the year, not simply prepare forms once a year.

Tampa Business Owners: Don’t Wait Until December

December gets busy quickly.

Businesses are closing out the year. Families are traveling. Holidays arrive. Employees take time off.

Suddenly, December 31 is only days away.

That is not the ideal time to begin serious tax planning.

October gives you time to identify potential issues, discuss your options and make informed decisions before year-end.

Even if no major changes are necessary, knowing approximately where you stand can provide valuable peace of mind.

Work With a Tampa CPA Before Year-End

CPA Tampa provides tax planning, tax preparation, accounting, bookkeeping and payroll services for individuals and small businesses throughout the Tampa Bay area.

We serve clients in Tampa, Clearwater, Largo, St. Petersburg, Pinellas Park, Dunedin and communities throughout Hillsborough and Pinellas counties.

Our goal is not simply to prepare your tax return.

We want to help you understand your financial position and identify legitimate opportunities to minimize your tax liability while there is still time to act.

Schedule Your October Tax Planning Consultation

Do not wait until December.

And definitely do not wait until tax season to discover what you could have done before December 31.

If you own a business, are self-employed, have experienced a major financial change or simply want to understand what your 2026 tax situation may look like, October is the time to start the conversation.

Contact CPA Tampa today to schedule a year-end tax planning consultation.

Let us review where you stand, identify potential issues and help you prepare for year-end before the clock runs out.

Schedule a 2026 year-end tax planning consultation with CPA Tampa today and find out what steps you can still take before December 31.

Get Started Today
Let CPA Tampa be your trusted partner for reliable, accurate, and affordable bookkeeping in Largo, FL.

📞 Call us at (727) 587-0376 or contact us online to schedule a free consultation.

CPA Tampa | Joel E. Berman, CPA, PA

Serving Tampa, Clearwater, Largo, St. Petersburg, Dunedin, Pinellas Park and surrounding Tampa Bay communities.