Why August Is the Perfect Month to Prep for Q4 Taxes

As summer winds down, most small business owners are still in “day-to-day” mode — but August is a hidden gem for getting ahead on year-end tax prep. By taking action now, you can smooth the road to Q4, reduce stress, and position yourself for maximum deductions.

1. Mid-Year Financial Check-In

Review Year-to-Date Income & Expenses: Pull a profit-and-loss report for January–July. Compare against your budget or last year’s numbers.

Spot Trends Early: If profits are higher than expected, you may need to increase estimated tax payments now to avoid penalties later.

Address Issues While There’s Time: Catch bookkeeping errors or missing documents now, not in December.

2. Organize Your Deductions

Gather Receipts & Records: Start collecting receipts for business expenses, charitable contributions, and mileage logs before they get lost.

Check Category Accuracy: Ensure expenses are categorized correctly in your accounting software for tax deductions.

Plan Major Purchases: If you’re considering buying equipment or investing in your business, now is the time to evaluate the tax benefits before year-end.

3. Adjust Withholding or Estimated Payments

Prevent Year-End Surprises: If income has shifted, update your tax strategy now.

Work With Your Tax Pro: An August check-in with your accountant allows time to make calculated adjustments rather than last-minute decisions.

4. August Advantage: Lower Stress, Better Planning

Unlike December, August offers breathing room — your accountant is more available, your mind is clearer, and you still have four months to implement tax-saving strategies. Don’t wait for year-end chaos. By using August as a mid-year tax prep checkpoint, you’ll head into Q4 with clarity, confidence, and a solid plan to minimize your tax burden.

Looking to make your life a bit less stressful when it comes to your business accounting, reach out to ShoreSource Business Solutions.