As the year winds down, some business owners shift their focus to wrapping up projects, managing cash flow, and squeezing in a few more client wins before the holidays. But this time of year could provide financial opportunities that are worth considering, especially for pre-retirees within five to ten years of their exit timeline.

So, what makes November and December a prime time for strategic adjustments?^[1] Along with key tax-planning deadlines, the year’s end provides a natural opportunity to review and plan. Tending to these tasks now could change financial outcomes when you file next year and potentially benefit your financial plan.

At LightForce, we find that business and personal finance both benefit the most from a long-game strategy. Bottom line: success is 90% planning and 10% execution. We’re here to help you flesh out a strategy that could lighten your load, enhance your operations, and help you build a retirement plan designed to reach your retirement goals.

Here are some year-end financial planning tasks we recommend that could help strengthen your business and your exit strategy before heading into next year.

1. Review Your Taxes Now, Not Just During Tax Season

If, like some business owners, you only meet with your CPA in March or April, you could be missing opportunities that could help reduce your tax liability. Meeting in November, however, could potentially still influence your tax outcome for the current year.

Ask yourself:

• Have you maximized your retirement plan contributions?
• Should you defer income or accelerate expenses before year-end?
• Are there unrealized gains or losses you can strategically harvest?

Understandably, these questions can be difficult to answer on your own, which is why it’s worth enlisting the help of your CPA. Additionally, for business owners with variable income, November is an ideal time to estimate your taxable income and figure out how additional contributions, such as a SEP IRA, Solo 401(k), or defined benefit plan, might reduce your liability.

LightForce Pro Tip: If you anticipate being in a higher tax bracket in retirement (for example, if you plan to sell your business or anticipate high RMDs), it may be worth exploring partial Roth conversions before December 31, while you still have control over your income levels.

2. Sync Your Business Cash Flow and Personal Goals

As an owner, how many times have you heard the importance of keeping business and personal finances separate? While this is generally a good idea, it could result in entrepreneurs overlooking the potential impact of their books on their retirement plan. If your company is thriving, your retirement plan should too.

• Business liquidity (available cash and retained earnings)
• Personal income needs (how much you actually draw)
• Future goals (funding a buyout, creating passive income, or paying down debt)

If your business had a strong year, now may be a good time to allocate excess cash strategically. That could mean making additional retirement contributions or investing in equipment purchases that qualify for Section 179 expensing. Another consideration is inflation–61% of business owners^[2] cite this as the number one factor impacting growth. With that in mind, it may also be a good time to build a potentially tax-advantaged reserve for next year.

3. Run a Pulse Check on Your Benefits Plan

Do you offer benefits to employees, especially retirement or healthcare plans? Late Q4 could be a good time to evaluate whether they’re serving your business effectively, especially if you have a calendar-year plan.^[3] Even if you don’t have a calendar-year plan, January 1st may be an important date for certain plan features, so it’s a good idea to get ahead.

• Are your plan fees competitive?
• Do your employees understand and value the benefits you’re providing?
• Are you maximizing tax deductions for employer contributions?

While a benefit review is important for compliance, it’s also an opportunity to review and possibly adjust your compensation strategy with your own wealth-building goals in mind. Revisiting your plan design can help you identify ways to improve retention and your tax efficiency.

LightForce Pro Tip: Still thinking about a benefit plan? Learn how a 401(k) plan can be a powerhouse tool for your business with this LightForce article.

4. Reassess Your Entity and Compensation Structure

Tax laws evolve, and then they evolve again, and again. Your business structure needs to keep up. The One Big Beautiful Bill Act of 2025 made several permanent changes to Section 199A (Qualified Business Income deduction) and Section 179 expensing rules–both of which affect how business owners should think about compensation, distributions, and reinvestment.

If your income or entity type has changed significantly since this legislation, your current setup might not be the most efficient going forward. See what business owners need to know here to evaluate what you may need to adjust. By capturing all available deductions, you can set yourself up for a smoother tax season ahead.

5. Plan Your Next Move

We try to help our clients think beyond the balance sheet: what are the ripple effects of this decision? How will it impact your future income flexibility or your succession plan? What about your personal legacy goals?

If you plan to transition your business in the next five to ten years, consider:

• Reviewing updated business valuation assumptions^[4]
• Coordinating your personal retirement plan with your business exit strategy
• Positioning your company for a successful transition through streamlined operations and documentation, diversifying your client base, building a strong leadership base, etc.
• Identifying potential buyers or successors early and preparing for favorable tax treatment under the new estate exemption limits effective in 2026

We work to help our clients create a business and retirement strategy designed to work cohesively so one doesn’t outpace the other.

Up Next: Schedule a Year-End Debrief

Before the calendar flips, take time to meet with your financial advisor, CPA, and business attorney to confirm your decisions are aligned across all areas. At Lightforce, we specialize in working with business owners to create plans that are designed to be tax-efficient with flexible income strategies that support your long-term financial goals.

Ready to end the year on a high note? Schedule your year-end review with LightForce today. We look forward to helping you wrap up your year and head into January and beyond with confidence!

Phone: 817-717-4400

Email: gerald@lightforcefinancial.com

Contact us: https://lightforcefinancial.com/contact-us/

Important Disclosures:

Advisors Resource Council (“ARC”), dba LightForce Financial, is a registered investment advisor. This content is provided for educational purposes only and should not be construed as specific investment advice or recommendations for any individual. All investments carry risk, including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. Past performance does not indicate future results. Consult a licensed tax professional or estate planning attorney regarding your personal situation before employing any specific strategies. All information is believed to be from reliable sources; however, ARC makes no representation as to its completeness or accuracy. Additional information, including management fees and expenses, is provided on ARC’s Form ADV Part 2, which is available upon request.

^[1] https://surge.law/november-is-tax-planning-month-for-businesses/

^[2] https://quickbooks.intuit.com/r/small-business-data/entrepreneurship-in-2025/

^[3] https://www.mwe.com/insights/employee-benefit-plans-important-considerations-for-year-end-and-2025/

^[4] https://www.seibelkatzcpa.com/content_library.htm?id=53JACQ4J&cat=alzrlirg