The Mid-Year Tax Review Every Business Owner Needs to Do Right Now
Tax season ended in April. Which means most business owners have already stopped thinking about taxes — and that's exactly the problem.
The best time to manage your tax liability is not in March when the bill is already written. It's in June, when you still have six months of decisions ahead of you that can materially change the outcome.
As a financial advisor serving business owners throughout Hillsboro Beach, Pompano Beach, Deerfield Beach, and Broward County, I consistently see the same pattern: the business owners who do a mid-year tax review end the year in a fundamentally better position than those who wait until Q4. A mid-year tax review is one of the highest-ROI activities any business owner can do — regardless of size, structure, or industry.
Why June Is the Right Time
By mid-year, you have enough actual data to make meaningful projections. Two full quarters of revenue and expenses give you a real picture of where your taxable income is trending. You're no longer guessing — you're planning with real numbers.
At the same time, you still have enough runway to act. Maximizing retirement contributions, making strategic purchases, restructuring compensation, or accelerating deductions — all of these require time to execute. Waiting until October is waiting too long.
Step 1: Project Your Full-Year Taxable Income
Take your Q1 and Q2 net income and project it forward. If the business is seasonal, adjust accordingly. The goal is a reasonable estimate of where you'll land on December 31st.
This number drives everything else. If you're projected to land in a higher tax bracket than last year, that's your trigger to act. If income is down, there may be different planning opportunities — loss harvesting, Roth conversions, accelerating income.
Step 2: Review Your Quarterly Estimated Tax Payments
Self-employed business owners and pass-through entity owners are required to make quarterly estimated tax payments. If your income has grown significantly in the first half of 2026, your Q3 and Q4 estimated payments may need to increase to avoid underpayment penalties.
Conversely, if income is down from last year, you may be overpaying — cash that could be better deployed in the business.
Step 3: Maximize Retirement Contributions
This is the most powerful and most underutilized tax strategy for business owners. Contributions to a SEP-IRA, Solo 401(k), or SIMPLE IRA reduce your taxable income dollar-for-dollar.
For 2026, Solo 401(k) contribution limits allow business owners to contribute as both employee and employer — meaning the maximum contribution can reach into six figures depending on net self-employment income. If you're a business owner in the Broward County area and you're not maximizing this, you're leaving real money on the table.
Step 4: Review Business Deductions and Timing
Are there legitimate business expenses you've been planning to make in the second half of the year? Equipment purchases, software subscriptions, professional development, office improvements — if these are genuine business needs, the timing of when you make them can have tax implications.
Step 5: Talk to Your CPA — Now, Not in February
The most valuable hour you can spend this June is a mid-year planning call with your CPA. Not to review what happened — to plan what happens next.
Time is your most valuable asset. Spend some of it on a tax review this June — your December self will thank you.
This post is for educational purposes only and does not constitute investment, tax, or legal advice. Please consult a qualified professional regarding your individual circumstances.