The calendar might still say August, but the reality for smart entrepreneurs is clear: the time to start your year-end financial and tax planning is now, not in December. By getting ahead of the game, you have the power to minimize taxes, maximize profitability, and enter the new year with a strong, strategic position.

At Bernstein Tax Group, we have seen the difference this early planning makes for our clients. Those who take action before Q4 are the ones who keep more of what they earn, have fewer surprises, and start January with confidence instead of stress.

In this guide, we will walk through the key areas to tackle now so you can set yourself up for a smooth year-end and a profitable start to 2026.

Review Q3 with Accuracy

Before setting Q4 goals, you must know exactly where you stand at the end of Q3. Reviewing your numbers thoroughly ensures that your decisions for the next three months are based on facts rather than estimates.

Balance Sheet Check:

• Confirm your current cash reserves, outstanding debts, and receivables.

• Compare Q3 performance against your Q2 and Q1 goals. Look for trends that reveal whether revenue is growing steadily, stagnating, or fluctuating.

• Identify which expenses are rising disproportionately to revenue, as this often points to inefficiencies or opportunities to renegotiate contracts.

Profit and Loss Statement:

• Break down revenue by product or service line to determine where the strongest profitability lies.

• Review gross profit margins. Are they improving, or do you need to adjust pricing or control costs?

• Compare operating expenses quarter over quarter to ensure they are in line with revenue growth.

Cash Flow Forecast:

• Look closely at your Q3 inflows and outflows. This will help you anticipate whether Q4 requires aggressive collection on receivables or tighter control on payables.

• Confirm that you have enough cash to cover both operating costs and investments you may want to make before year-end.

A clear view of Q3 is the foundation for making confident moves in Q4. Without this clarity, it is easy to set unrealistic goals or miss critical opportunities.

Setting Ambitious Yet Realistic Q4 Goals

Q4 is often a business’s strongest quarter, especially in industries with year-end buying cycles or seasonal surges. At the same time, it can also be a period of high expenses, particularly if you invest in growth or plan for taxes. Setting the right goals requires balance between ambition and realism.

Revenue Targets:

• Base Q4 revenue targets on your YTD growth rate, factoring in any seasonal demand specific to your industry.

• Push for a stretch goal that is slightly higher than your average quarter, but ensure it is backed by a clear sales and marketing plan.

Profitability Goals:

• Aim to increase your profit margin by trimming wasteful expenses. Even a two to three percent improvement in net profit can add significant value to your year-end numbers.

• Consider how reinvesting some revenue into marketing, hiring, or technology could boost sales while still maintaining a healthy margin.

Operational Goals:

• Commit to measurable goals beyond revenue. For example: reducing invoice collection times by ten days, cutting recurring expenses by five percent, or boosting customer retention by implementing loyalty programs.

By defining both revenue and non-revenue goals, you ensure that Q4 is not just about short-term sales but also about building operational efficiency for the new year.

Timing Tax Moves Before Year-End

Taxes should never be left until the final days of December. Many strategies require planning weeks or even months in advance to maximize their impact.

Accelerate Expenses:

If your income is higher than projected, consider paying certain expenses in advance before December 31. This could include office rent, insurance, or software subscriptions. Accelerating deductions reduces taxable income for the current year.

Delay Income Where Possible:

For some businesses, it may make sense to defer invoicing until January to reduce taxable income in the current year. This strategy must be balanced carefully against cash flow needs.

Leverage Retirement Contributions:

• For entrepreneurs, retirement contributions offer one of the most effective ways to reduce taxable income. Contributions to Solo 401(k)s or SEP IRAs can significantly reduce your liability while building long-term wealth.

• Check contribution limits and ensure you are on track to maximize them before the year closes.

Invest in Growth Assets:

Purchasing equipment or software that qualifies for Section 179 expensing or bonus depreciation can generate substantial deductions. Beyond tax benefits, these investments can improve efficiency and productivity going into Q1.

Charitable Giving:

If philanthropy is part of your values, consider charitable contributions before year-end. Not only do they reduce taxable income, but they also enhance brand reputation when shared authentically with customers.

Timing tax moves strategically ensures you are not overpaying and that you enter the new year with a lighter tax burden.

Strategic Marketing and Hiring Decisions

Q4 is often when businesses decide to invest in marketing campaigns or hiring. These decisions can both improve revenue and create tax benefits.

Marketing:

• Allocate resources to proven campaigns that deliver high ROI.

• Leverage Q4 seasonal momentum by offering promotions or loyalty rewards that attract both new and repeat customers.

• Document and analyze campaign data in real time to ensure you are not overspending on channels that do not deliver results.

Hiring:

• If you know you will need new talent in Q1, consider making those hires in Q4. Training new employees before the year ends allows them to hit the ground running in January.

• Salary and benefit expenses in Q4 can also reduce taxable income for the current year, creating a double benefit.

When timed properly, marketing and hiring investments improve Q4 performance and create momentum for Q1.

Tools for Tracking Success in Q4

You cannot manage what you do not measure. Q4 requires consistent tracking to ensure your strategy remains on course.

KPI Dashboards:

• Track key performance indicators such as revenue per customer, average order value, and customer acquisition costs.

• Use dashboards to monitor daily and weekly performance against your Q4 goals.

Financial Trackers:

• Tools like QuickBooks, Xero, or other accounting software make it easy to track expenses and income in real time.

• Consistent tracking avoids year-end surprises and allows for quicker course corrections.

Tax Estimators:

• Use online calculators or professional software to forecast your estimated taxes. This ensures you are neither underpaying nor missing opportunities to reduce liability.

Project Management Platforms:

• Tools like Asana, Trello, or Monday.com help keep Q4 initiatives organized, from marketing campaigns to tax preparation.

• Assign clear deadlines and responsibilities to ensure no task slips through the cracks.

The right tools allow you to monitor progress, anticipate challenges, and make proactive decisions throughout Q4.

Action Plan: Your Q4 Checklist

To help you finish strong, here is a practical checklist for preparing and executing your Q4 strategy:

1. Review Q3 results with accuracy. Confirm revenue, profit margins, expenses, and cash flow.

2. Set Q4 revenue and profit goals that are ambitious but backed by clear strategies.

3. Plan tax moves early: accelerate expenses, delay income where beneficial, maximize retirement contributions, and explore Section 179 investments.

4. Evaluate marketing investments and ensure campaigns deliver measurable ROI.

5. Consider Q4 hiring to build capacity before January.

6. Implement tools like KPI dashboards, financial trackers, and project management software to stay on track.

7. Schedule a professional consultation to confirm your plan is aligned with tax efficiency and long-term business growth.

The Bottom Line

Q4 is your opportunity to not only close the year strong but also set the tone for the next twelve months. By reviewing Q3 with accuracy, setting the right goals, making smart tax and investment moves, and leveraging the right tools, you can create maximum impact.

The businesses that finish strong in Q4 are the ones that take control, plan ahead, and execute with discipline. Do not wait until the last weeks of December to scramble. Start today, build momentum, and enter the new year with confidence.