Four Ways to Save on Taxes Next Year

Tax Day has gone for 2026, but strategies to affect the tax bill for small business owners are getting started for 2027. Unless you are an accountant, you probably dread Tax Day every year. Here are some ideas to save on your taxes next year.

1.  Maximize Business Deductions. Track and deduct all legitimate business expenses — home office, vehicle use, equipment, software, professional development and even a portion of your phone bill. Many owners leave money on the table by not documenting these consistently throughout the year. You can track your mileage through phone applications. Did you know that your B.O.S.S. Academy membership is a deduction? The cost of professional memberships can be deducted.
2. Choose the Right Business Structure. When creating your company, small business owners should pick the right option. Your entity type (sole proprietor, S-corp, LLC or corporation) significantly affects your tax burden. For example, electing S-corp status can reduce self-employment taxes by allowing you to split income between a salary and distributions. Only the salary portion is subject to SE tax. B.O.S.S. Academy members can reach out to attorneys to determine the best option for them.
3. Contribute to Retirement Accounts. Plans like a SEP-IRA, Solo 401(k), or SIMPLE IRA let you deduct contributions from taxable income — sometimes up to $70,000/year depending on the plan and your income. This is one of the most powerful legal ways to reduce your tax bill while building long-term wealth. Financial advisors can help you set up these plans as a small business owner.
4. Defer Income and Accelerate Deductions. If you expect to be in a lower tax bracket next year, delay invoicing clients until late December so payment arrives in January. Simultaneously, prepay deductible expenses (insurance, subscriptions and supplies) before year-end to reduce this year's taxable income. Often, small business owners buy big-ticket items, such as new computers and printers in December to get a big deduction. You also might want to renew your membership with B.O.S.S. Academy before the end of the year.

There are other ways to save money on your taxes. Reach out to members who can coach you on these ideas.