As the snow starts to stick in Minnesota and the holiday lights go up, many entrepreneurs are looking for year-end tax tips for small business success. Business owners in the Twin Cities and Rochester have two things on their minds: finishing the year strong and enjoying some well-deserved time off.

But we know the reality. For many entrepreneurs, December isn’t just about eggnog and holiday parties; it’s about the looming pressure of year-end books, payroll deadlines, and the approaching tax season.

At Haworth & Company, our mission is to provide Big Relief for Small Businesses. To help you enjoy a stress-free holiday season, we’ve put together four essential items to check off your list before the ball drops on 2025.

1. The “Buy It Now” Strategy (Section 179)

If you’ve been eyeing new equipment, office furniture, or computer software for your business, December is the time to pull the trigger.

Thanks to Section 179 of the IRS tax code, you may be able to deduct the full purchase price of qualifying equipment bought and put into service before December 31st, rather than depreciating it over several years.

• Action Item: Review your needs for 2026. If you have the cash flow, buying now can significantly lower your 2025 taxable income.

2. Time Your Income and Expenses

For businesses operating on a cash basis, you have a unique opportunity to control your tax liability at year-end.

• Defer Income: If you expect to be in the same or lower tax bracket next year, consider sending out some invoices late in December so payments arrive in January.
• Accelerate Expenses: Pay outstanding vendor bills or stock up on non-inventory supplies before December 31st to capture those deductions in the current year.

3. Clean Up Your Payroll

Payroll is often the biggest headache for small business owners. Before the year ends, ensure all employee data is up to date (addresses, SSNs) to avoid W-2 correction fees later.

• Bonus Tip: If you are planning year-end bonuses, make sure you account for the taxes correctly so neither you nor your employees get a surprise. (Need help? Ask us about our EZ Payroll services!)

4. Don’t Wait Until April

The most stressful way to handle taxes is to wait until spring. The “Big Relief” comes from planning now. By meeting with us in December or January, we can look at your P&L while there is still time to make adjustments.

Give Yourself the Gift of Peace of Mind

You didn’t start your business to spend your nights worrying about the IRS. This holiday season, focus on what you love—whether that’s growing your company or spending time with family—and let us handle the numbers.

From all of us at Haworth & Company—in Maple Grove, West St. Paul, Edina, and Rochester—we wish you a happy holiday season and a prosperous New Year!

Need a year-end review?
Contact us today to schedule a consultation at the location nearest you. Let’s make 2026 your best year yet.

Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.