Four steps business owners can take to address the health of one of their greatest assets — their business — ahead of the start of the new year.
The fourth quarter is one of the most critical periods for business owners in shaping the future success of their businesses. With the recent tax changes and evolving economic conditions, strategic year-end planning is a powerful tool for positioning a business toward success in 2026.
“It’s easy to become absorbed in the day-to-day operations of running a business,” says Steve McConley, a lead wealth planning strategist with Wells Fargo Wealth & Investment Management, Wells Fargo Bank, N.A. “But this final stretch offers the opportunity for forward-thinking leaders to step back and evaluate key areas that will help lay the groundwork for the year ahead.”
McConley offers four steps business owners can take now to address the health of one of their greatest assets — their business — ahead of the start of the new year.
1. Anticipate tax implications and monitor legislative changes
Tax planning is always important, McConley says, but can become especially urgent in the fourth quarter. Business owners should consider:
- Accelerating or delaying expenses based on potential tax benefits. If a deductible expense is already planned, consider completing it before year end to capture the deduction in the current tax year.
- Taking advantage of depreciation rules, especially under the One Big Beautiful Bill Act (OBBBA), which may allow for immediate expensing of capital purchases.
- Staying informed of legislative changes included in the OBBBA — which impacted depreciation, estate/gifting exemptions, Qualified Small Business Stock (QSBS) terms, just to name a few.
2. Evaluate capital expenditures
Capital investments can be a powerful tool for growth — especially if they’re timed and financed wisely, McConley says.
- Review your borrowing needs with a commercial lender to help ensure you’re not overextending your business.
- Align financing with your business’s cash flow to avoid unnecessary strain.
3. Think long-term
McConley encourages business owners to use the year-end timeframe as an opportunity to zoom out and consider the bigger picture.
- Revisit your succession plan. Whether you’re planning to sell, transition the business to a family member, or bring in new leadership, having a clear plan can be essential.
- Explore charitable giving and tax-loss harvesting strategies like direct indexing, especially if you anticipate a future capital gain event.
- Update estate planning documents and consider how changes to the lifetime exemption could affect your personal and business legacy.
4. Build your team
As your business evolves, so should your support team. McConley believes there can be a huge benefit to working with a financial institution that can service both business and personal wealth management needs. For example, advisors in Wells Fargo Wealth & Investment Management partner with their commercial and investment banking counterparts to help deliver a holistic, integrated approach by aligning business goals with personal wealth planning, estate strategies, and long-term wealth preservation to help unlock greater value from their life’s work.
In addition to a financial or wealth advisor, business owners should consider building out their team to include:
- A commercial banker who offers strategic insights, not just access to capital.
- A CPA who is more than a tax preparer — they should understand your business operations and help you plan proactively.
- A corporate attorney who can help with ownership structure, buy-sell agreements, and legal compliance.
The fourth quarter is more than just a time to close the books — it’s a strategic window to help shape the future. With thoughtful planning, the right team, and a clear understanding of both business and personal financial goals, business owners can enter 2026 with a well-informed strategy that reflects both the intricacies of their business and the shifting landscape of today’s economy and policies.
Wells Fargo Wealth & Investment Management (WIM) offers financial products and services through affiliates of Wells Fargo & Company.
Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.
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