Tax time shouldn’t feel like a surprise party that ends with the IRS handing you the bill.
But for many small business owners, that’s exactly what it is. Despite working hard all year, they often head into tax time unsure of what they’ll owe, or worse, hoping for a refund that never comes. That uncertainty can throw off cash flow, delay growth decisions, and turn a good year into a stressful one.
It doesn’t have to be that way.
A tax preview is a simple and powerful way to see your likely tax outcome before the end of the year, while there’s still time to make changes that count. It eliminates the guesswork from your tax situation and provides clarity for moving forward..
Instead of reacting to a tax bill months after the year ends, a tax preview helps you see what’s coming so you can take action. Whether that’s buying equipment, contributing to a retirement plan, adjusting your payroll withholdings, or setting aside cash for what’s ahead.
If you’ve ever been surprised by a tax bill or wished you’d made different decisions before the year closed, this article is for you.
Let’s take the mystery out of tax time.
A tax preview is a proactive tool for estimating your personal tax liability. It uses real numbers, including your business income, expenses, payroll data, and deductions, to estimate what your tax situation will look like before the end of the year. In other words, it gives you a sneak peek at your likely tax bill so you’re not flying blind.
It’s like getting your tax returns completed early, except with time still on the clock to change the outcome.
Because reacting to your taxes after December 31 is like trying to reroute a flight after you’ve already landed, it’s too late.
Here’s the truth: By the time your accountant is preparing your actual tax return in February or March, your opportunities for minimizing your taxes are practically gone. Most of the smart moves you could’ve made—like buying deductible equipment, making retirement contributions, or changing payroll withholding—are no longer on the table because the year is over.
That’s why a tax preview is so powerful. It’s your window of opportunity.
With a clear understanding of where your business stands before year-end, you can:
It’s not about gaming the system. It’s about playing smart with the rules you’re already living by.
And let’s be honest, peace of mind is priceless. Business owners who think ahead about taxes don’t just sleep better at night. They make better, more confident financial decisions because they know what’s coming.
At TMA, we typically perform tax previews for our business owner clients during two key windows each year:
This is an early checkpoint. It’s beneficial for business owners who have experienced big changes, such as growing revenue, hiring new staff, or purchasing equipment. If your business looks different than last year, this preview can help identify early tax implications.
We help business owners stay organized throughout the year. We have a simple financial statement each month that accurately shows your income and deductions for the current tax year (so far). Using this information about your year-to-date business income and payroll information to identify trends, estimate your trajectory, and detect any potential red flags early. This is only intended to be a rough estimate, but it gives us a solid baseline and helps update quarterly tax payments and cash planning for the fourth quarter and year-end.
This is the most detailed and actionable version. It’s based on nearly a full year’s worth of activity and is timed perfectly to allow you to make decisions before the end of the year.
At this point, we’re not just spotting trends, we’re fine-tuning your tax position. We’ll look at:
By December 31, you’ll know where you stand on taxes—no surprises.
Every tax preview is built from real, updated numbers, not just last year’s tax return. Our team gathers information from multiple sources to provide a comprehensive picture.
Using this data, we can create a very educated guess about your tax situation before year-end. This avoids annoying tax surprises and allows you to plan ahead instead.
A tax preview isn’t just a theoretical exercise—it’s a powerful tool that helps you make smart, timely decisions that can reduce your taxes and boost your business.
Here’s the truth: tax surprises are expensive. And stressful. The last thing you want is to finish a great year in business only to discover a giant tax bill you weren’t ready for.
A tax preview gives you time to prepare and even change the outcome.
This kind of insight is a game-changer.
It turns tax filing from a reaction into a roadmap. Instead of waiting until March or April to see what happened, you get to influence the result while you still have time to act.
So, how does this work on the back end?
At TMA, here’s what our team does to create a useful tax preview:
Unless something major has changed, last year’s tax return is a solid starting point. It shows income sources, deduction categories, and filing status.
The software helps determine your likely tax bracket, expected tax liability, and how much you’ve paid in so far (through payroll or estimated taxes). There’s usually a gap between the two; that’s where we focus our attention.
After we’ve analyzed the numbers, we will talk with you to explain the results. You’ll get clear explanations, not just tax lingo.
Some business owners have never heard of a tax preview, let alone seen one. So it’s natural to have questions. Here are some of the most common ones we hear:
Nope. Tax prep occurs after the year ends and involves completing the necessary tax forms. A tax preview is forward-looking; it’s designed to help you make smarter choices before it’s too late.
Before the year ends, it’s nearly impossible to predict exactly what your tax bill (or refund) will be. The accuracy of our estimate depends on how much of the year’s data we already have (the more, the better) and how much variability there is in your income and expenses over the remaining part of the year.
This is why a preview is so important! It gives you time to plan ahead:
If your year was profitable, you especially need a tax preview. More profit = more taxes. A preview helps you visualize everything, so your success doesn’t come with a painful surprise.
A tax preview is one of the simplest, most powerful tools you can use as a business owner. It helps you:
At TMA Accounting, we believe your business shouldn’t be held back by fear, guesswork, or confusing tax rules. That’s why we offer tax previews as part of our proactive approach to accounting.
You’ve worked hard to grow your business. We’re here to help you keep more of what you’ve earned—and to build a financial support system that helps you achieve your goals.
If you’re not working with us yet, we’d love to show you how tax previews can make your business stronger and your life less stressful. Schedule a meeting to chat with us today!