As December 31 approaches, Northern Virginia small business owners face more than holiday deadlines—they face critical year-end tax decisions that could impact their bottom line.

For businesses in Manassas, Prince William County, and the broader Northern Virginia area, the stakes are especially high this year. Beyond routine deductions, strategic planning must account for the expiration of key Tax Cuts and Jobs Act (TCJA) provisions at the end of the year. Decisions about income timing and business structure now could shape your tax burden for years.

At Brown, Mobley & Way PC, we guide Northern Virginia businesses through complex financial transitions. Our philosophy: tax planning is a proactive, multi-year strategy—not a last-minute scramble.

Is your business prepared for the year-end tax cliff? Schedule your Free Business Consultation with Brown, Mobley & Way PC today.

Phase I: The Critical December 31st Checklist

Timing is everything. Managing the recognition of income and expenses before the year ends can reduce your current-year tax liability.

Strategic Timing of Income and Expenses

• Deferring Income: For cash-basis businesses expecting stable or higher income next year, consider delaying invoices or client payment requests until January 1.
• Accelerating Expenses: Prepay expenses like insurance, supplies, marketing, or software licenses if you expect a higher tax bracket this year. Delaying payments for rent or suppliers into the new year may help if income is lower next year.

Maximize High-Impact Deductions

• Retirement Contributions: Contribute as both employer and employee to maximize deductions. Solo 401K or SEP IRA contributions can reach $70,000, reducing taxable income immediately.
• Asset Tracking & Depreciation: Document all equipment, technology, and vehicles purchased or put into service this year. Include purchase dates, service start dates, business-use percentage, and note any sold or traded items.
• Vehicle Mileage: Ensure all vehicle logs are complete and accurate—total annual miles and business miles—to support deductions in case of an audit.

Finalize Accounting Records

• Generate Income Statement, Balance Sheet, and Cash Flow Statement.
• Review the Income Statement to understand profits and forecast the next 12 months.
• Separate personal and business expenses and maintain organized receipts, invoices, and tax records.

Immediate Year-End Actions:

• Adjust income by accelerating expenses or deferring revenue
• Maximize retirement contributions
• Document all asset purchases and depreciation
• Verify vehicle logs
• Run standard financial reports
• Schedule a strategy session with Brown, Mobley & Way PC

Phase II: Planning for the TCJA Sunset

Year-end compliance is only the beginning. Long-term planning is essential as TCJA provisions expire December 31. While Congress may act, businesses should prepare for the worst-case scenario: reversion to pre-TCJA rules.

QBI Deduction Optimization:

• Forecast full-year business and outside income by Q2 to allow adjustments.
• Make pre-tax retirement contributions early to stay below QBI thresholds.
• Schedule quarterly check-ins with a tax strategist to prevent income phase-out traps.

Reassessing Business Structure:

• Evaluate if your current entity (Sole Proprietorship, S-Corp, C-Corp, Partnership) remains optimal.
• Transitioning to an S-Corp or other structure may maximize tax savings in light of legislative uncertainty.

Phase III: Northern Virginia State & Local Compliance

Virginia Filing Deadlines:

• C-Corp (VA-500): Due April 15 | Extension: Nov 16 (Payment still due April 15)
• S-Corp/Partnership (Form 502): Due March 16 | Extension: Sept 15 (Payment still due March 16)
• Individual Estimated Taxes: Quarterly payments (Apr, Jun, Sept, Jan) if expecting >$1,000 owed

Virginia Tax Online Services:

• File and pay taxes electronically
• Access 14 months of account history
• Manage Sales & Use Tax, Employer Withholding, and Corporation Income Tax

Local Licenses & Taxes:

• Ensure all required licenses in Manassas City and Prince William County are obtained.
• STDR businesses (short-term rentals) must apply for certification annually and file quarterly tax returns if 80% of receipts are rentals ≤92 days.

Protect Your Northern Virginia Business

Year-end is more than a checkpoint—it’s your final opportunity to define taxable income and secure your business’s future.

Whether you operate near Historic Downtown Manassas or serve clients throughout Prince William County and Northern Virginia, a comprehensive, forward-looking tax strategy is critical.

Brown, Mobley & Way PC provides personalized guidance, integrating multi-year TCJA planning and proactive QBI optimization into a simplified, actionable plan.

Start your Free Business Consultation today to discuss your year-end checklist, plan for 2025, and keep more of what your business earns.