Preparing Your Business for Q4: Tax Tips & Budgeting Advice

As summer winds down, many business owners turn their attention to the final quarter of the year – Q4. It’s a crucial period for hitting targets, tidying finances, and making smart tax decisions before the year ends. With a little forward planning, you can close out the year with confidence and get a head start on 2026.

Here’s how to prepare your business for a successful Q4, with practical tax tips and budgeting advice from Crossley & Davis.

1. Review Year-to-Date Performance

Before planning for Q4, take stock of the first nine months:

Are you on track with revenue and profit targets?
Have you kept up with your bookkeeping and reconciliations?
What went well and where could things improve?

A quick review now helps you set realistic goals for the next three months and spot any issues early.

2. Tidy Up Your Bookkeeping

Accurate, up-to-date records mean you’ll spot tax-saving opportunities (and avoid nasty surprises).

Reconcile bank accounts and match all receipts/invoices
Chase outstanding payments before the year ends
Log expenses and mileage to maximise claims

If you’re still using spreadsheets, now’s a great time to consider cloud accounting software – it’ll make your Q4 (and year-end!) much easier.

3. Forecast Your Year-End Cash Flow

Q4 often brings extra expenses – staff bonuses, stock purchases, or festive marketing. Create a simple cash flow forecast to avoid running short.

List all expected income and outgoings through year-end
Highlight any large, one-off costs
Plan for HMRC payments due in January (like Self Assessment)

If you think you might need extra funding, it’s easier to arrange now, rather than in a December panic.

4. Make Smart Tax Moves Before 5th April

There is plenty of time to take action and reduce your tax bill for the current tax year:

Bring forward planned purchases (equipment, software, etc.) to use capital allowances
Pay into a pension to reduce your personal tax liability
Claim for any business expenses you’ve missed so far
Consider dividends if you’re a director/shareholder

Speak to your accountant for tailored advice – what works best depends on your individual situation.

5. Check Stock and Prepare for Seasonal Demand

For retailers, Q4 can make or break the year. Now’s the time to:

Review your stock levels and reorder bestsellers
Clear out obsolete inventory
Plan promotions or events for Black Friday, Christmas, and New Year

6. Tie Up Loose Ends: Compliance & Housekeeping

Don’t leave deadlines to the last minute:

Check Companies House and HMRC filing deadlines
Update your insurance and business policies
Schedule time off for yourself and your team!

A little organisation now means a more relaxed holiday season.

Your Q4 Action Plan:

Review performance and update your books
Forecast cash flow and manage payments
Make strategic tax decisions
Prepare for seasonal peaks (if relevant)
Get ahead on compliance and filing

Let’s Finish 2025 Strong – Together

Not sure where to start, or need bespoke advice? Crossley & Davis is here to help with Q4 planning, tax reviews, and all your year-end questions.