10/16/2026
For many firms, the easiest year-end tax move is simply deciding when to send your invoices. If you're on a cash basis, delaying billing into January and paying expenses in December can shift income into next year, as long as you're not holding payments that are already available to you.
Accrual-basis firms can deduct year-end bonuses this year if the amounts are fixed by December 31 and paid by March 15, although bonuses for owners generally count only when they're paid.
Law firms have one extra step. Client trust and IOLTA funds stay out of income until they're earned and transferred, so year-end is the time to reconcile those accounts.
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