It may feel like tax season is months away, but the truth is, the earlier you prepare, the smoother the process will be. By August, businesses and individuals have enough year-to-date data to make smart tax planning decisions that can minimize stress—and maximize savings—when filing season arrives.

At Peavy and Associates, a full-service accounting firm, we help clients stay proactive with their tax strategies so they can avoid last-minute surprises. Here are the top steps you can take now to ensure a stress-free filing season ahead.

1. Review Year-to-Date Income and Expenses

Now is the time to take a close look at your financial performance so far this year. For businesses, this means reviewing profit and loss statements, cash flow, and expense categories. For individuals, this might include employment income, side gigs, or investment gains. Understanding where you stand helps your accountant project your tax liability and create a plan.

2. Adjust Estimated Tax Payments

If you’re self-employed or a business owner, you may be making quarterly estimated tax payments. A mid-year review allows you to adjust those payments based on actual performance, helping you avoid both underpayment penalties and overpaying the IRS.

3. Maximize Retirement Contributions

Contributing to retirement accounts such as a 401(k), IRA, or SEP IRA not only builds long-term savings but also reduces your taxable income for the year. Planning these contributions now spreads out the cash flow impact and ensures you don’t miss out on valuable deductions.

4. Track Deductions and Credits Early

Waiting until tax season to gather receipts and documentation can be overwhelming. Start now by organizing records for common deductions such as business expenses, charitable donations, childcare, and medical costs. Staying organized throughout the year makes filing faster and easier.

5. Consider Accelerated Expenses or Purchases

For business owners, strategically timing large purchases or expenses before year-end can reduce taxable income. Whether it’s investing in equipment, software, or employee training, talk with your accountant to see if accelerating expenses makes sense for your tax strategy.

6. Plan for Major Life Changes

Have you recently gotten married, had a child, bought a home, or started a new business? These changes can significantly impact your tax situation. Reviewing them now with a trusted advisor ensures you take advantage of all available credits and deductions.

7. Schedule a Tax Planning Consultation

The best way to avoid last-minute tax stress is to partner with a professional. At Peavy and Associates, we provide tailored tax planning services that help both individuals and businesses minimize liability and maximize peace of mind.

Prepare Early with Peavy and Associates

Tax season doesn’t have to be stressful—if you prepare in advance. At Peavy and Associates, our experienced accountants guide clients through smart, proactive tax strategies designed to save time and money. By starting now, you’ll avoid the year-end rush and enter tax season with confidence.

✨ Contact Peavy and Associates today to schedule your tax planning consultation and get ahead of the filing season! ✨