If you run a franchise or multi-location brand, you know how busy the final quarter can be. Between staff schedules, sales pushes, and year-end reports, taxes can easily fall behind. But Q4 is your best chance to make smart financial moves that can lower your tax bill and start 2026 strong.
This tax checklist for business owners walks you through the most important areas to review before December 31, with straightforward steps you can actually act on.
1. Review and Reconcile Your Books
For multi-location businesses, consistent bookkeeping is key. If one store logs expenses differently from another, it can throw off your consolidated reports and make tax prep a headache.
For year-end, you want to make sure that your income and expenses are accurately recorded, and that every location has closed out its month-end reports. Review your bank and credit card reconciliations, double-check that transactions are categorized correctly, and verify that each site uses the same chart of accounts.
2. Capture Year-End Deductions and Equipment Purchases
If you’ve been planning to invest in upgrades or new equipment for a while, now’s a good time to have that discussion with your accountant. Purchases made and placed in service before December 31 may qualify for Section 179 expensing, which allows you to deduct the full cost of equipment instead of spreading it over a few years.
For hardware stores, that might include new tools, shelving, or POS systems. For wellness brands, think about equipment upgrades, furniture replacements, or facility improvements.
Even with the generous tax break, we advise clients to purchase equipment only if it’s needed by the business. Talk to your CPA about what qualifies and whether the business can actually afford the outlay, whether it’s in the form of cash or a new loan to acquire the equipment.
3. Confirm Your Estimated Tax Payments
Even if you use a payroll provider, it’s still your responsibility to make sure your estimated tax payments are accurate and on time. Many business owners underestimate how much they’ll owe, especially if the year went better than expected.
Take a moment to review whether your 2025 estimated payments cover your projected income. If your business is structured as a C corporation, check that your corporate estimates are up to date. For S corporations or partnerships, make sure you’ve made sufficient individual estimates to cover your share of the income.
Your payroll company will handle wage withholdings and filings, but estimated taxes fall on you to monitor. Making a final top-up payment before the Q4 due dates can help you avoid underpayment penalties and a surprise tax bill in the spring. For C Corporations, the Q4 estimated tax payments are due by December 15, while individual Q4 payments are not due until January 15, 2026.
4. Finalize Retirement Plan Contributions and Bonuses
Q4 is the last window to make or adjust employer retirement plan contributions for the year. Maxing out your 401(k), SEP IRA, or profit-sharing contributions can reduce taxable income while helping your team build for the future.
If you’re considering year-end bonuses, start the conversation early with both your payroll provider and your accountant. They can help you make sure the bonuses are processed correctly and recorded in the right period. Handling this before the rush of January ensures everything is accounted for properly and your team heads into the new year feeling appreciated.
5. Count and Review Your Inventory
If you use a point-of-sale system to track inventory, year-end is a great time to make sure the data matches what is actually on your shelves. Most multi-location brands rely on regular cycle counts rather than full physical counts, so Q4 is a good checkpoint to review how those counts are going and to spot-test high-value or fast-moving items. This helps you catch discrepancies early and keeps your reports accurate for purchasing and planning.
It’s also a chance to look at how well your inventory is performing overall. For hardware franchises, that might mean checking whether your top-selling parts this year are the same as last year or whether customer buying habits have shifted. For wellness studios, it could be reviewing which retail items moved quickly and which ones slowed down.
Use this information to fine-tune ordering thresholds, adjust automated reorders, and make sure you’re stocking the right products. The goal is to have a healthier inventory mix that supports better service and stronger profitability going into the new year.
6. Build Your 2026 Cash Flow Plan
Once you’ve handled year-end items, start looking ahead. Use your Q4 data to forecast next year’s sales, expenses, and cash needs. This helps you plan for upcoming tax payments, payroll adjustments, and potential new locations.
Work with your CPA to model different income scenarios and decide whether to defer or accelerate income or expenses. A proactive approach now can help you avoid cash flow surprises later.
7. Touch Base With Your CPA Before Year-End
For many business owners, a quick year-end conversation with their CPA can surface last-minute opportunities, confirm that estimated taxes are on track, and make sure nothing important was overlooked. If you do not already receive proactive tax planning or formal tax projections, this is the moment to ask for them. A short check-in now can help you make adjustments while there is still time to act.
If you are already getting regular tax projections and ongoing planning throughout the year, then you’re in good shape. In that case, use Q4 to make sure your books are fully caught up so your CPA has clean, current numbers to work with. When your finances are timely and accurate, it becomes much easier to confirm the projections, spot any issues across locations, and have a discussion about plans for the coming year.
How SAS Helps Franchise Business
At SAS, we specialize in accounting and tax services for franchise and multi-location brands, and advise on Rollovers on Business Startups ROBS accounting and compliance for business owners looking to start a new location.
We take care of your books, monthly reporting, and year-round tax planning, so you can focus on running your business.
If you’re looking for an accounting partner for your franchise, reach out to our team for an introductory call.
