What Businesses Should Review Before the 2026 Tax Year Ends
For many business owners, tax planning begins when the accountant calls for records. That may happen in December, when the year is nearly over, or in March, when it is already over. The books can still be corrected at that point, but a machine bought too late to be used in 2026 cannot be put into service retroactively. Compensation already paid cannot simply be recast, and a choice about business structure may take time to evaluate and implement. October leaves roughly one quarter to review those decisions before the year closes.
A business can earn more than expected and still be short of cash for its tax bill if estimated payments have not kept pace. Eligible owners may be able to deduct up to 20% of qualified business income, although taxable income and other limits affect the calculation. Similarly, qualifying equipment may be eligible for 100% bonus depreciation when it is placed in service. Section 179 provides another way to deduct eligible purchases. For tax years beginning in 2026, its deduction limit is $2.56 million and begins to phase out when qualifying purchases placed in service exceed $4.09 million.
S.M.A.R.T. Management treats the review as part of regular financial management. The owner identifies the income, expenses, compensation decisions, and purchases most likely to affect the tax bill. A forecast measures the likely amount against tax already paid and cash set aside. Someone is responsible for reconciling accounts, gathering purchase records, and correcting transactions entered in the wrong category. The owner and tax professional can then review the figures, decide which actions still make business sense, and update the payment plan before the year ends.
WEEKLY RECOMMENDATION
This Week's Pick: The I in Team
One of the central ideas in Individual Influence: Find the "I" in Team is that balance is part of how a leader influences others. When an owner never takes time off, employees may assume that is what commitment requires. The most dedicated employees are often the first to follow that example, even though they are the people the business can least afford to burn out and lose.
FEATURED VIDEO
The Role of Emotional Resilience in Leadership
In this episode of Daily Influence, Brian Smith explores the role emotional resilience plays in leadership. The conversation covers how leaders can navigate stress, setbacks, and unexpected challenges without allowing their emotional reactions to negatively affect those around them. Resilient leaders are not just emotionally intelligent, but also capable of navigating challenges with calmness and stability. For owners and managers, that stability can influence trust, transparency, collaboration, and the way teams respond to pressure.
SMB SIGNALS
292,000
jobs were lost in 2025 in businesses with fewer than 10 employees. This is about 4.5 times as many as in 2020.
Alignable's September 2026 State of Small Business survey
Alignable's September 2026 State of Small Business survey found that 59% of owners named finding customers as their number one challenge, compared with 10% who identified time and capacity as their number one challenge. The gap was particularly pronounced among online-only businesses, where 68% cited finding customers as their biggest challenge, compared with 46% of businesses with a physical location.Small Businesses Outpace Mid-sized Firms in Profitability Growth
Bank of America Institute's September Business Checkpoint reported that profitability growth among small businesses outpaced that of mid-sized firms in August, while hiring-related payments also improved. The analysis uses Bank of America business account data and covers firms with less than $50 million in annual revenue.Comment Period Extension
The Small Business Administration has extended the comment period on its proposed changes to small business size standards until November 20. The proposal would change which companies qualify as small for federal contracting. SBA’s Office of Advocacy now estimates that 4,000 to 6,000 current contractors would gain small business status, far fewer than the 115,000 companies in SBA’s original estimate.
EVENTS
Small Business Expo Houston (Houston, TX - December 2, 2026)
The one-day expo will be held at the Reliant Center. It brings together small business owners, founders, and service providers for workshops, speaker sessions, speed networking, and an exhibitor floor. Sessions cover topics such as marketing, financial planning, and business technology, while the exhibitor area gives owners a chance to compare products and meet potential partners.
Future-Ready Contractor Leadership (Virtual - December 10, 2026)
This is an online workshop for HVAC and plumbing owners and managers. Frank Besednjak will cover how contractors can respond to private equity consolidation, use AI for missed calls and scheduling, improve technician onboarding and retention, and remove bottlenecks in the customer journey.
MORE TO READ
State of Entrepreneurship Report 2026 (ZenBusiness)
ZenBusiness surveyed 2,000 current and aspiring U.S. entrepreneurs between January and July 2026. It found that 75% have used AI for at least one core business function, and 47% say AI is doing the work of a co-founder or handling tasks they would otherwise pay someone to do.
Missed Call Count
Most owners assume the phone gets answered. Few have checked how many calls went unanswered during business hours. The Missed Call Count shows that in about 30 minutes.
WEEKLY INSIGHT
"The best leaders don't just adapt to change — they anticipate it and prepare their teams."
— SMART Advantage Team
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