How to prepare for 2027 if you’re self-employed
Unfortunately summer is over. That also means that 2027 is right around the corner, and in self-employed land the year is essentially over. Motivation is usually a little higher this time of year so now is a great time to start preparing for the close of the year and the start of 2027.
We broke down tasks to do within the last three months of the year so that you can get a head start on 2027!
October: Calculate your business income
- Start calculating your 2026 business expenses together if you don’t have them done already. While you’re at it, get your income together and follow up on any outstanding invoices.
- Next, you’ll want to estimate your expenses and income for the remaining three months. This helps us understand where you’ll end for the year so that we can estimate retirement contributions. Your accountant can also give you a tax estimate as well.
November: Start tax planning
- Set up a meeting with your accountant. Setting a meeting before the end of the year is a great way to set yourself up for success during tax time. If you don’t have an accountant, now’s a good time to look for one!
- Review your fixed business and personal expenses. Are there any services you can cut out, monthly subscriptions you can switch to annual subscriptions for less, items you can buy in bulk to save on?
December: Round out the year with retirement
- Review your cash flow accounts. We recommend our clients have separate business accounts for income, taxes, and expenses. This is the time of year to make sure they are not over funded and the right money is hitting the right account.
- Start planning for your 2026 retirement contributions, for most accounts you can make this contribution until April 2027. Making a contribution to a retirement plan is a good way to keep taxable income low. If there is a surplus in your tax account you can use that cash to make a retirement contribution.
Extra credit: Give your finances an extra boost
- Set your goals for 2027! As you’re reviewing 2026 numbers, set your 2027 goals.
- If you don’t have one already, open a retirement account
- Top up any personal savings goals you have
- Make HSA contributions if possible
- Contribute to children’s 529 accounts
The end of the year is a busy time for most of us! As the days get shorter and the year comes to an end it’s a good time to focus on your financial plan so you’re prepared for the year ahead. If you’re in a business that’s busier in the winter you can shift your “year-end” to a different time. But, it’s still important to keep in mind the end of year deadlines and tax season planning that’s needed to run your business.
Every business operates differently, and getting an effective end-of-year financial structure requires careful planning and custom strategies. If you’re looking for help creating that structure, schedule a consultation. We partner with clients to implement financial planning systems, organize tax preparation, and optimize cash management so they can regain clarity and focus on growing their business and enjoying their lives.
