September may feel early to think about taxes. For a busy business owner, it probably feels like there are still client projects to finish, invoices to send, and plenty of time before the holidays.
But September is one of the best times to make a year-end tax plan.
By December, many business owners are trying to close out projects, manage holiday schedules, and prepare for the next year. That leaves little time to make thoughtful decisions about retirement contributions, equipment purchases, deductions, or estimated payments.
A little planning now can give you more options later. Here are five practical tax moves to consider before December 31, whether you run a small business in Colorado Springs, work as a freelancer, or operate as a sole proprietor or consultant.
1. Run a quick tax forecast and review your estimated payments
Your tax bill should not be a surprise that appears months after the year ends.
Start by looking at your business income and expenses through August or September. Then estimate what the rest of the year may look like. Consider:
- Expected revenue from October through December
- Outstanding invoices and upcoming client work
- Planned equipment or software purchases
- Retirement contributions
- Business mileage and travel
- Home office and other operating costs
- Federal and Colorado estimated payments already made
This does not need to be a perfect prediction. It needs to be useful enough to show whether your current payments are on track.
If your income increased this year, your estimated payments may be too low. If business slowed down or you made larger deductions, you may be paying more than necessary. A forecast can help you make a more informed fourth-quarter payment and reduce the chance of an unpleasant tax bill or underpayment penalty.
For federal taxes, self-employed individuals generally make quarterly estimated payments. The third-quarter payment for 2026 is generally due September 15, with the fourth-quarter payment generally due January 15, 2027. Colorado has its own estimated tax rules, so review the Colorado Department of Revenue’s estimated payment guidance as part of your planning.
A forecast also helps you evaluate the other four moves on this list. Retirement contributions, new equipment, and overlooked deductions can all change your expected tax result.
2. Explore a SEP IRA or solo 401(k)
If you are self-employed, a retirement contribution may help you save for the future while reducing your taxable business income.
Two common options are a SEP IRA and a solo 401(k).
A SEP IRA is often attractive because it is relatively simple to set up and can allow larger contributions based on your business income. You may generally establish and fund a SEP IRA by the due date of your tax return, including extensions.
A solo 401(k) may offer more flexibility. Depending on your situation, you may be able to contribute as both the employee and the business owner. It can also provide a Roth contribution option if the plan allows one.
For 2026, the employee contribution limit for many 401(k)-type plans is $24,500, with additional catch-up amounts available for some older participants. Total contributions to a solo 401(k) may be higher, subject to income and plan rules. SEP IRA contribution limits are also based on income and annual IRS limits.
The important point is not to choose a plan based on a headline number. The right choice depends on:
- Your business structure
- Your expected net income
- Whether you have employees
- Your age
- How much flexibility you want
- Whether you want pre-tax or Roth contributions
- When the plan must be established and funded
If you are considering a solo 401(k), do not wait until the last week of December. The plan may need to be established by December 31 for certain 2026 employee contributions. A SEP IRA may offer a later setup deadline, but you still need time to compare options and coordinate with your financial institution.
The IRS provides additional information about retirement plans for self-employed people. Before opening or funding a plan, review the details with your tax and financial professionals.
3. Review business purchases and Section 179 opportunities
Have you been planning to replace a computer, purchase equipment, upgrade technology, or invest in tools your business genuinely needs?
September is a good time to decide whether the purchase belongs in 2026 or 2027.
Some qualifying business equipment may be eligible for faster tax treatment under Section 179. In simple terms, this may allow a business to deduct some or all of the cost of qualifying property in the year it is placed in service rather than spreading the deduction over several years.
The key words are placed in service. Ordering an item in December may not be enough if it is not delivered, installed, and ready for business use before the end of the year.
Before making a purchase, ask:
- Do I need this item for the business?
- Will it improve operations or replace something outdated?
- Can the business comfortably afford it?
- Will using the deduction this year actually help?
- Would the deduction be more valuable in 2027?
- Are there business-use or vehicle rules that apply?
Buying something only to get a deduction is rarely a good strategy. A deduction reduces taxable income; it does not make an unnecessary expense free.
Your tax advisor can compare the impact of purchasing and placing equipment in service this year versus waiting. The IRS guide to business expense resources includes information about depreciation, business expenses, and vehicle costs.
4. Find overlooked deductions, especially home office and mileage
Many small business owners do not miss deductions because they are unavailable. They miss them because the records are incomplete.
Before December 31, review the expenses that are easiest to overlook.
Home office
If you work from home in Colorado Springs, you may qualify for a home office deduction if part of your home is used regularly and exclusively for business. You may use a simplified method or calculate actual expenses, depending on your situation.
Gather information such as:
- Office and total home square footage
- Rent or mortgage interest
- Utilities
- Internet costs
- Homeowners or renters insurance
- Repairs and maintenance
- Photos or other records showing the dedicated workspace
A kitchen table used for both personal and business activities may not meet the requirements. The details matter.
Mileage
Business driving can also add up, especially if you meet clients across Colorado Springs, drive to nearby communities, visit job sites, or travel between business locations.
Review your mileage log now instead of trying to recreate it in April. Record:
- Date of each trip
- Starting and ending location
- Business purpose
- Business miles
- Parking and tolls, when applicable
A drive through mountain air may be enjoyable, but it is not automatically a business deduction. The trip needs a clear business purpose, and personal driving must be separated from business use.
You generally choose between the standard mileage method and the actual expense method. Which one is better depends on your vehicle, business-use percentage, and records. The IRS standard mileage rate page provides official mileage guidance.
Also review subscriptions, software, phone and internet use, professional fees, insurance, supplies, business meals, and education. Keep receipts and a short note explaining the business purpose when it may not be obvious.
5. Book a proactive tax check-in before the holiday rush
A December appointment may sound reasonable now. In practice, calendars fill quickly.
Book a tax planning conversation before the holiday rush so you have time to act on the recommendations. A useful meeting should go beyond asking whether you have all your receipts.
Bring:
- Your year-to-date profit and loss report
- Prior-year tax returns
- Estimated payment records
- Retirement account information
- Equipment or vehicle purchase plans
- Mileage records
- Home office details
- Questions about your business structure or owner pay
At Beta Financial Accounting, the Tax Optimization Session includes a review of your last two years of tax returns, a current financial snapshot, and clear recommendations for reducing taxable income and planning ahead.
The goal is not simply to find one last deduction. It is to understand your tax position before important decisions are locked in.
You can schedule a consultation with Beta Financial Accounting to discuss your situation and determine whether a proactive planning relationship is the right fit.
The bottom line
You do not need to solve your entire tax situation in one afternoon. Start with five steps:
- Forecast your income, deductions, and estimated payments.
- Compare a SEP IRA and solo 401(k).
- Review needed purchases and equipment timing.
- Gather home office, mileage, and other overlooked deduction records.
- Schedule a tax check-in before the year-end rush.
For a Colorado Springs business owner, September is early enough to make meaningful changes: but late enough to use real numbers from the year. A little planning now can bring more clarity, better cash-flow decisions, and fewer surprises when tax season arrives.
