What services does DWK Tax & Accounting offer?

DWK Tax & Accounting offers tax preparation and planning, bookkeeping, accounting, business advisory, and outsourced CFO services for individuals and small businesses in Wheaton, IL and DuPage County.

Where is DWK Tax & Accounting located?

DWK Tax & Accounting is based in Wheaton, Illinois, serving clients throughout DuPage County including Naperville, Glen Ellyn, Lisle, Downers Grove, and the greater Chicago suburbs.

Do you work with small businesses?

Yes. DWK Tax & Accounting specializes in serving small business owners, entrepreneurs, and growing companies who need more than basic tax compliance, including strategic advisory and fractional CFO support.

How do I schedule a consultation?

You can schedule a consultation by visiting https://dwkcpa.com/contact, calling (708) 369-0044, or emailing david@dwktaxaccounting.com.

When should I start year-end tax planning?

Year-end tax planning should begin in October or November, not December. Many strategies, retirement contributions, equipment purchases, entity elections, charitable giving, must be implemented before December 31. Starting in October gives you time to analyze your financials, identify opportunities, and execute strategies before the deadline passes.

What is the most impactful year-end tax strategy?

For profitable businesses, the S corp election and retirement plan contributions are typically the most impactful. An S corp election can save thousands in self-employment tax, and contributions to a SEP-IRA or Solo 401(k) reduce both income tax and self-employment tax while building retirement savings. The specific strategy that saves the most depends on your income, entity type, and goals.

Can I buy equipment before year-end to reduce taxes?

Yes. Under Section 179, you can expense the full purchase price of qualifying equipment, furniture, and software in the year of purchase (up to annual limits), rather than depreciating it over several years. This front-loads the deduction and can significantly reduce current-year tax liability. The equipment must be placed in service (not just ordered) before December 31.

Should I defer income to next year?

Deferring income to the next tax year can reduce your current-year tax liability, especially if you expect to be in a lower bracket next year. For cash-basis businesses, this means delaying invoicing until January. However, deferring income only makes sense if you expect lower rates next year or if it prevents crossing a tax threshold. We analyze your specific situation to determine whether deferral is beneficial.

What retirement contributions can I still make before year-end?

SEP-IRA and Solo 401(k) contributions for the current tax year can be made up to the tax filing deadline (April 15), but the plan must be established before December 31 for some plan types. For a Solo 401(k), the plan must be set up by December 31 to make employee deferral contributions for that year. We help you choose and establish the right plan before the deadline.

Year-End Tax Planning Checklist

The most effective tax strategies must be implemented before December 31. Once the year ends, most opportunities to reduce your tax liability are gone. This year-end tax planning checklist covers the actions every small business owner should consider before the calendar turns, and why starting in October, not December, gives you the time to execute them properly.

1. Review Your Profitability

The first step in year-end planning is knowing where you stand. Review your year-to-date profit and project your full-year income. If your profit is higher than expected, you may need to implement strategies to reduce taxable income. If it is lower, you may want to defer deductions to next year when they may be more valuable. Our monthly bookkeeping clients have accurate, current financials to plan from.

2. Evaluate Your Entity Structure

If you are a sole proprietor or single-member LLC and your profit exceeds $60,000-$80,000, an S corp election could save thousands in self-employment tax. The election must be made by March 15 of the following year (for the prior tax year), but planning should happen before year-end so payroll can be set up correctly. Learn more about S corp tax preparation.

3. Maximize Retirement Contributions

Retirement contributions are one of the most powerful tax reduction tools. A SEP-IRA allows contributions up to 25% of compensation or $69,000 (2024 limit). A Solo 401(k) allows even higher contributions for sole proprietors. For high-earning owners, a defined benefit plan can allow contributions exceeding $100,000 per year. Some plans must be established by December 31, contact us now to set up the right plan for your situation through our tax consulting service.

4. Time Equipment Purchases (Section 179)

If you need equipment, furniture, or software, buying and placing it in service before December 31 lets you expense the full purchase price under Section 179 (up to annual limits). This front-loads the deduction into the current year. But the equipment must be placed in service, not just ordered, by December 31, so plan purchases early enough to receive and deploy the equipment.

5. Review Quarterly Estimated Payments

Your final quarterly payment is due January 15. Before making it, review your full-year projected income and adjust the payment to match your actual tax liability. If you have underpaid, increasing the January payment can reduce underpayment penalties. If you have overpaid, you can reduce it and keep more cash in your business. Read our guide on quarterly tax payments.

6. Capture Every Deduction

Review your expense records for deductions you may have missed: home office, vehicle mileage, business meals, professional development, software subscriptions, and business travel. If you have not been tracking mileage, reconstruct your log now from calendar entries and appointment records. Our top tax deductions guide covers the most valuable ones.

7. Consider Charitable Contributions

Charitable contributions made before December 31 are deductible in the current year. If you are close to a tax bracket threshold, a year-end contribution can reduce your taxable income. For larger contributions, consider donating appreciated stock, you deduct the fair market value and avoid capital gains tax on the appreciation.

8. Defer or Accelerate Income

If you expect to be in a lower tax bracket next year, deferring income (delaying invoices until January) reduces your current-year tax. If you expect higher rates next year, accelerating income (billing in December) may be better. We analyze your specific situation and recommend the approach that minimizes total tax across both years. Our tax planning service handles this analysis.

9. Issue 1099s and W-2s

Before year-end, verify that you have W-9 forms from all contractors and prepare to issue 1099-NEC forms by January 31. Verify employee W-2 information and prepare for W-2 filing. Our payroll services handle this for you.

10. Schedule a Year-End Planning Meeting

The most important step is sitting down with your CPA before December 31 to review your situation and implement strategies. We serve business owners across Wheaton, Naperville, and Glen Ellyn. Schedule your year-end planning meeting today, before the strategies on this checklist expire.