Most business use cash basis reporting and can pre-pay business expenses, which can be helpful if there is a high tax liability in the current year and the liability the following year is expected to be the same or lower. An example could be Accounts Payable (A/P). If the business is holding off paying A/P because of cash flow, consider using a line of credit to pay off the payables off so the expense can be taken in the current year and then repay the line of credit when that same cash comes in the next year. By pre-paying expenses and clearing off A/P from the balance, tax liability is reduced. Other examples of expenses that can be pre-paid are:

• Rent (office or other)
• Annual licenses or subscriptions
• Payments to service providers
• Rental property expenses such as mortgage

Whenever assets are purchased, a business owner will want to consider putting them in service by the end of the year. In service means that the asset, whether it be a rental property or equipment, such as a vehicle or computer, is up and running and actively being used by the business by the end of the year. In the case of a rental property, the property needs to be available for rent, listed for lease, is move-in ready and, most importantly, is rented by 12/31.

If the business owner has a retirement plan, it is a tax strategy that should be taken advantage of.  All employees, whether it's the business owner or employees, can max out the 20,500 basic employee deferral (plus an additional $6,500 catch-up contribution if the employee is of age). The employee-side deferral has to occur through payroll before year-end (12/31). When there is an employer match, there is another 20-25% depending on the entity type, and can be after year-end (12/31).  

Another long-term tax saving technique is doing a backdoor Roth IRA. This involves contributing the maximum $6,000 to a non-deductible traditional IRA. Then convert that non-deductible IRA to a Roth IRA, which locks in long-term tax savings.

An HSA can be set up on a personal health insurance plan if the plan allows for it, and the individual will need to check with their plan provider for eligibility. If eligible, when there is a high deductible health plan a single person can contribute up to $3,650 to an HSA, while married individuals can contribute up to $7,300. The contributions are tax deductible regardless of income, will grow tax-free for a long time in an investment account within your HSA, and comes out tax free. Contributions to an HSA must be done before year end (12/31).

If there are multiple charities to contribute to in the current year and next year, consider combining those givings into the current year. If there is uncertainty about which charities to donate to, an option is to consider using a donor advised fund (DAF). A DAF is basically a charitable investment account that is used to put aside contributions to support charitable organizations. A DAF allows you to contribute now, tax-free, and choose which charities it goes to later. 

Consider donating non-traditional items such as appreciated stock or crypto currency to avoid capital gains, or any physical property or equipment. The donation must be done by the end of the year to secure the Deduction. Keep in mind, that physical property with a value over $5000 will need an appraisal or evaluation.