The Business Owner’s Secret Weapon: Timing Your Income & Expenses

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Welcome back! Last week, we talked about why year-end planning is one of the smartest moves you can make.
This week, we’re diving into a strategy that can directly lower your tax bill without shrinking your business:
​Controlling when your income hits and when your expenses are paid.

This isn’t about earning less.
It’s about being strategic so you maximize cash flow, minimize taxes, and keep more of what you work hard for.

The Big Question:
​“What does ‘deferring income’ and ‘accelerating expenses’ actually mean?”

Here’s the simple explanation:

Deferring Income

You delay receiving certain payments so they count as 2026 income instead of 2025.

Accelerating Expenses

You move planned purchases into this year so they can be deducted on your 2025 tax return.

Both are perfectly legal, IRS-approved strategies that help manage taxable profit without changing how your business operates.

Real-Life Examples You Can Apply

1. Deferring Income

You finish a December project but wait to invoice until January 2, 2026.
The payment becomes 2026 income instead of 2025.

2. Accelerating Major Purchases

You plan to buy a $7,000 printer in early 2026.
Buy it before December 31, 2025 so you can likely deduct the full amount this year.

3. Prepaying Operating Expenses

Need marketing services or office supplies early next year?
Pay for them before year-end to turn them into 2025 deductions.

Is This Strategy Always Right?

Not necessarily.
Sometimes doing the opposite—accelerating income or deferring expenses—is actually smarter.

You may want the opposite strategy if:

• You expect to be in a higher tax bracket next year
• You have tax credits or loss carryforwards about to expire
• You need higher income on record to qualify for financing

This is where personalized tax planning makes the difference.
A strategy that helps one business could cost another thousands.

Your Action Plan for This Week

1. Review Your Invoices​
   Identify payments you can reasonably push into January.
2. Review Planned Purchases​
   Look at equipment, software, or inventory you can buy before December 31.
3. Talk to Us​
   Income and expense timing is not a DIY task. The best results come from strategy, not guesswork.

Schedule a Quick Call to Review Your Income & Expense Timing​
Let’s make sure every move you make works in your favor.

Next Week’s Topic

Another tax-saving tool you don’t want to overlook:
​How retirement contributions can lower your tax bill while building long-term wealth.

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