December is the worst time to discover unpaid invoices and missing records for tax season.
Close the year strong by reconciling open invoices, sending final reminders, and preparing clean records for your accountant.
1. List All Open and Overdue Invoices
Export paid and outstanding invoices for the quarter before estimating taxes. Your billing system should be the source of truth for revenue.
Match expenses to the same period so profit calculations reflect reality.
Quarterly reconciliation beats a panicked scramble in April.
2. Send Year-End Payment Reminders
Set aside a percentage of each paid invoice for estimated taxes — many solo owners use 25–30% as a starting point depending on state and income mix.
Pay estimated taxes on schedule to avoid penalties and surprise balances.
Paying quarterly keeps tax season from becoming a cash-flow crisis.
3. Export Records for Tax Preparation
Log deductions when they happen: software, home office, mileage, and contractor payments tied to client projects.
Attach receipts or notes to expense records so your accountant spends less time chasing details.
