Smart Money Moves for December: Maximize Your Tax Deductions Before 2025

The end of the year is often a blur for us creative entrepreneurs—balancing client deadlines, wrapping up projects, and dreaming big for the year ahead. Embroiled in this crazy last-minute hustle, it’s easy to overlook the importance of making intentional financial decisions that can set your business up for success. December gives busy women running their own architecture firms, design studios, art galleries, or other creative businesses a unique chance to reflect, plan, and take smart actions that align your finances with your goals. This DesignDash Guide is packed with actionable, approachable tips to help you maximize your tax deductions, reduce your tax liability, and feel empowered as you close out the year with confidence and clarity. Let’s tackle these tasks together—thoughtfully and efficiently—so you can start 2025 with a clean slate and a sense of accomplishment.

20 Smart Money Moves to Make in December So Tax Season is Simple

#1 Schedule a “Money Date” with Yourself

Think of this as a self-care ritual for your finances. Set aside an hour to sit down with your favorite coffee or tea, your laptop, and your financial documents. This is your moment to review the big picture: How much business income have you earned this year? What are your deductible business expenses so far? Are there any surprises in your numbers—either pleasant or otherwise?

A “money date” gives you clarity on where you stand, helping you make informed decisions as you approach the end of the tax year. Plus, by catching any issues early, you’ll reduce the stress that comes with tax filing. It’s also a great time to review your tax strategy with a tax advisor or accountant if you have one. This simple practice not only ensures you’re maximizing small business tax deductions but also aligns your financial decisions with your business goals.

#2 Organize Your Receipts and Records

Paper clutter isn’t just an annoyance; it’s a missed opportunity for tax savings. Deductible expenses like business meals, office supplies, and professional fees require proper documentation to be claimed. Use this time to sort through your paper and digital receipts.

Apps like Expensify or QuickBooks can make this process less painful by digitizing and categorizing your records. Organized records mean fewer headaches come tax season and ensure you’re prepared to back up your tax return if needed.

Remember, the IRS requires receipts for many small business tax deductions, and maintaining accurate documentation helps you stay compliant with tax rules while keeping your adjusted gross income as low as legally possible.

#3 Calculate Your Estimated Tax Payments

As a solopreneur, staying on top of estimated taxes is essential to avoid surprises and penalties. Take a moment to assess your income tax obligations and see if your quarterly payments align with your actual earnings.

Use the actual expense method to calculate self-employment tax deductions or consult a tax professional for guidance. This step is especially important if your business income fluctuates throughout the year. By making an additional payment in December if needed, you can reduce your tax liability and avoid interest fees. Plus, addressing this now saves you from a potential scramble when filing your tax return.

#4 Stock Up on Office Supplies

Need more pens, notebooks, printer ink, or even a new office chair? December is the perfect time to stock up on essentials for your business operations. These office supplies are easy tax write-offs, and buying them before the end of the year helps lower your taxable income.

Whether you’re working from a dedicated studio or taking a home office deduction, these expenses are a straightforward way to save on taxes while ensuring you’re well-prepared for the new year. Keep your receipts and document the business purpose of each purchase to ensure these expenses qualify as small business tax deductions.

#5 Invest in Professional Development

Whether it’s an online workshop, a design certification course, or professional services like coaching, investing in yourself is one of the smartest tax-deductible moves you can make. Professional development expenses are not only an allowable deduction, but they also help you grow your skills and expand your business offerings.

For example, if you’re an interior designer, learning a new software tool could streamline your workflow, while a gallery owner might benefit from a seminar on curating or marketing. Think of it as both a long-term investment and an immediate tax write-off. Just make sure the expense aligns with your business purpose to qualify as a deductible expense.

#6 Upgrade Your Tools and Technology

The tools you use daily—whether it’s design software, a sewing machine, or a high-powered laptop—are the backbone of your business. If you’ve been putting off an upgrade, now is the time. Not only can you write off these business purchases as deductible business expenses, but they also boost your productivity.

For example, graphic designers investing in faster processors or makers upgrading their crafting tools can both improve efficiency and lower their taxable income. Bonus depreciation rules might even allow you to deduct the full cost of certain equipment purchased before year-end. By taking action now, you’re setting yourself up for success in 2025 while reducing your tax burden for this year.

#7 Prepay 2025 Business Expenses

If you know you’ll need specific memberships, subscriptions, or services for your business next year, consider prepaying them before December 31. For example, renewing your membership with a professional organization, paying for a year of business insurance, or paying for software subscriptions upfront can count as deductible business expenses for this tax year.

This strategy allows you to reduce your taxable income now while locking in resources you’ll need for the coming year. If you’re using services like website hosting, project management tools, or professional software licenses, prepaying can also help you take advantage of annual discounts, saving you even more money. Always ensure these expenses serve a clear business purpose and document them appropriately for your tax return.

#8 Make Charitable Donations

Charitable contributions are not just a way to give back—they’re also a smart tax-saving strategy. Donating to organizations that align with your personal or professional values can reduce your taxable income.

For example, an artist might contribute to an arts education program or a gallery owner might support a nonprofit working to preserve public art. Remember that cash donations need to be documented with receipts, and non-cash contributions like artwork or supplies must have an estimated fair market value.

Always verify that the organization is a qualified 501(c)(3) to ensure your donations are tax-deductible. Deduct charitable contributions in December to maximize both your tax savings and your impact.

#9 Donate Unused Inventory or Supplies

If you’re a maker or designer, those unsold items sitting in your studio can serve a greater purpose—and give you a valuable tax break. Donating unused inventory or supplies to charities, educational programs, or community organizations is a great way to declutter your workspace and help others.

For example, ceramicists might donate surplus pottery to an art education program, while interior designers could contribute fabric swatches or materials to nonprofits. Be sure to document the fair market value of these items and obtain a receipt from the organization. These donations can count as deductible expenses and reduce your business tax liability while supporting a cause you care about.

#10 Sponsor Local Events or Artists

Sponsorships are a win-win: they promote your business while contributing to your community. Whether it’s sponsoring a local art exhibit, funding a community event, or supporting a fellow artist’s project, these expenses often qualify as tax-deductible advertising expenses.

For example, an interior designer sponsoring a neighborhood holiday home tour can generate goodwill and attract future clients. Make sure your sponsorship clearly serves a business purpose—such as brand visibility or networking—to qualify as a business tax deduction. Keep detailed records of sponsorship agreements and fees paid to ensure smooth sailing during tax season.

#11 Max Out Your SEP IRA or Solo 401(k)

One of the most powerful ways to reduce your taxable income is by contributing to a self-employed retirement account. If you have a SEP IRA or Solo 401(k), max out your contributions before year-end to take full advantage of the tax benefits. These accounts not only lower your current tax burden but also help you build long-term wealth.

For example, a small business owner earning $100,000 could potentially contribute up to $25,000 or more, depending on the account type and income. Consult with a tax professional to determine your contribution limits and ensure you’re optimizing your retirement savings while reaping significant tax savings.

#12 Set Up a Health Savings Account (HSA)

If you have a high-deductible health plan, an HSA is a tax-advantaged way to save for medical expenses while reducing your taxable income. Contributions to an HSA are tax-deductible, grow tax-free, and can be used for qualified healthcare costs.

For solopreneurs, this is a double benefit: you’re saving for future health expenses while lowering your adjusted gross income. Use the funds for anything from health insurance premiums to out-of-pocket medical bills. Just be sure to open and fund your account before the end of the tax year to maximize your small business tax savings.

#13 Pay Yourself a Holiday Bonus

If your business had a profitable year, consider rewarding yourself with a holiday bonus. This isn’t just a feel-good move—it’s a smart way to manage your business income and personal finances. Bonuses can be structured to align with your overall tax strategy, helping you manage your tax burden more effectively.

For example, if you’re an LLC or S-Corp, this could be part of your payroll taxes or distributions. Consult with a tax advisor to determine the best way to structure this payment to maximize your tax savings while celebrating your hard work.

#14 Invest in Energy-Efficient Upgrades

If you’ve been considering upgrading your home office or studio with energy-efficient lighting, insulation, or HVAC systems, December is the perfect time to act. Many of these upgrades qualify for tax credits under the current tax code, reducing your overall tax liability.

Not only can these improvements lower your utility bills, but they also enhance the value of your business property or workspace. Be sure to document expenses and consult with a tax professional to ensure you’re eligible for the credits. These investments align perfectly with both financial and environmental goals.

#15 Research the Work Opportunity Tax Credit (WOTC)

If you’ve hired employees or contractors from certain groups, such as veterans or individuals from economically disadvantaged backgrounds, you may qualify for the Work Opportunity Tax Credit. This often-overlooked tax credit can provide substantial tax savings for business owners who prioritize diversity and inclusion in their hiring practices.

Even if you’re a solopreneur, knowing about credits like this can help you plan for future business growth. Keep detailed records of employee start dates and certifications to take full advantage of this benefit.

#16 Deduct Your Business Travel Expenses

If you’ve traveled this year to meet clients, attend conferences, or scout locations, make sure you’re deducting all eligible expenses. Airfare, lodging, meals, and even vehicle expenses incurred while conducting business are often tax-deductible.

For example, a gallery owner traveling to source art or an interior designer meeting out-of-town clients can claim these costs as deductible business expenses. Be sure to keep receipts and note the business purpose for each trip. These deductions can significantly lower your income tax liability while making tax season a bit easier.

#17 Send Outstanding Invoices

Close out the year with a clean cash flow by following up on any outstanding invoices. Sending reminders to clients and ensuring payments are received before December 31 can help you better understand your financial picture for the year.

More importantly, it impacts your business income and ensures you’re accounting for everything accurately in your tax return. Tools like QuickBooks or Wave can help you automate invoice tracking and payment reminders. By wrapping this up now, you’ll step into the new year with clarity and control.

#18 Negotiate Deadlines for Next Year

For projects that might carry over into 2025, take this time to clarify contracts and set realistic deadlines. This step isn’t just about financial clarity—it’s about ensuring your business operations are smooth and stress-free.

For example, if you’re an interior designer with a project that crosses tax years, make sure you’re clear on how billing and payments will be structured to reflect the correct tax year. Transparent agreements benefit both you and your clients, keeping everyone on the same page.

#19 Review Your Business Structure

If you’re currently operating as a sole proprietor, consider whether transitioning to an LLC or S-Corp might better suit your financial and legal needs in the upcoming year. This can impact everything from your self-employment tax to your overall tax strategy.

For example, S-Corps can provide significant tax savings by allowing business owners to take part of their income as distributions, which aren’t subject to payroll taxes. Consulting with a tax advisor or legal professional can help you decide if this is the right move for your business.

#20 Plan for Professional Support

Not sure how to maximize tax deductions and worried you might make a mistake? If the thought of tax filing overwhelms you, now is the time to find a tax professional or bookkeeper to support you. Professional services like these ensure your business tax deductions are accurate, your tax return is compliant, and your allowable deductions are maximized.

A good accountant can also help you navigate complex issues like bonus depreciation, itemized deductions, or real estate taxes. Don’t wait until the last minute—lining up the right support now saves you time, stress, and potential errors down the line.

Final Thoughts: Align Your Finances with Your Vision Before 2025

As the year draws to a close, take a moment to celebrate everything you’ve accomplished—whether it’s launching a new project, finding creative solutions to challenges, or simply making it through another busy year. Acknowledge the lessons you’ve learned along the way and how they’ve shaped you as both a business owner and a creator.

Financial management doesn’t have to feel daunting or dry; it’s an opportunity to align your money with your values, dream bigger, and build a solid foundation for growth. By embracing this process with intention and care, you’re not just preparing for tax season—you’re setting yourself up for success in the year ahead. Step into 2025 with confidence, clarity, and the knowledge that you’re crafting a business and a life that both reflect your unique vision and purpose.