Running a small business means juggling a lot—clients, employees, cash flow, and everything in between. But if there’s one area you shouldn’t overlook mid-year, it’s your taxes. Proactive tax planning now can save you major headaches (and dollars) come year-end.
At Basso & Guida, we work with business owners across Long Island to keep their finances sharp year-round—not just during tax season. Here are 5 smart mid-year tax moves to help you stay on track, reduce surprises, and maximize your bottom line.
1. Revisit Your Estimated Tax Payments
If you’re self-employed or own a business entity like an S-Corp or LLC, you’re likely making quarterly estimated tax payments. But how accurate are they?
Your income may have changed since January. Mid-year is the perfect time to:
- Review what you’ve paid so far
- Project your income for the rest of the year
- Adjust payments to avoid underpayment penalties—or overpaying
2. Evaluate Business Expenses and Deductions
Now’s the time to identify what’s deductible, what you’ve spent so far, and where you may be missing out.
Common deductions to review mid-year include:
- Equipment or technology purchases
- Home office or remote work expenses
- Business travel, meals, and entertainment
- Marketing and advertising costs
- Employee salaries, bonuses, and benefits
Organizing your receipts and categorizing expenses mid-year means less scrambling during tax season—and more deductions come filing time.
3. Consider Retirement Contributions
If your business has been profitable so far this year, now’s a good time to consider tax-advantaged retirement plans for yourself or your employees.
Options may include:
- SEP IRAs
- Solo 401(k)s
- SIMPLE IRAs
These plans allow you to reduce your taxable income while setting aside money for the future. Win-win.
📌 Need help choosing the right plan? We can walk you through what makes the most sense based on your income and goals.
4. Run a Mid-Year Profit & Loss Statement
Your P&L statement is more than just a report—it’s a roadmap.
Running one mid-year helps you:
- Understand your profitability
- Identify cost-saving opportunities
- Spot trends before they become problems
- Plan for year-end purchases or strategic investments
If your P&L shows excess profit, it may be a good time to invest in deductible business expenses—before that profit becomes taxable income.
5. Schedule a Tax Strategy Session
You don’t have to figure it all out on your own. A mid-year check-in with your accountant can help you:
- Optimize your tax strategy
- Adjust your business structure if needed
- Plan for upcoming purchases or tax changes
- Get ahead of deadlines
At Basso & Guida, we believe in precision in numbers and passion in service—meaning we don’t just crunch numbers, we help you make smart decisions that drive your business forward.
Final Thoughts: Don’t Wait Until Year-End
Tax planning isn’t a once-a-year task. The most successful business owners take time mid-year to evaluate, adjust, and prepare—and it pays off when April rolls around.
📞 Schedule your mid-year review with Basso & Guida today and let’s make sure your tax strategy is working as hard as you are.
