Four Quarters, One Winning Strategy: Why Business Owners Should Treat Tax Planning Like Football

There’s something special about this time of year in Toledo.

The weather starts to change, Friday night lights come on, college football returns, and communities across Northwest Ohio come together to cheer for their teams. Football season is finally here—and whether you’re a lifelong fan or just enjoy the excitement of game day, there’s a lot about football that can teach us about running a successful business.

At The Bottom Line, we think one lesson stands out:

A football game has four quarters. So does your tax year.

And just like a football team doesn’t wait until the final seconds of the fourth quarter to start making adjustments, business owners shouldn’t wait until tax season to start thinking about taxes.

First Quarter: Start the Year With a Game Plan

Every good football team enters the game with a plan.

Coaches study the opponent. Players know their assignments. The team understands what it wants to accomplish before the opening kickoff.

Your business should approach the tax year the same way.

The first quarter is the perfect time to look at your prior-year results, establish financial goals, review your expected income, and identify potential tax opportunities.

Questions worth asking include:

• What does this year's revenue look like compared with last year?

• Are profits expected to increase or decrease?

• Are there major equipment or technology purchases planned?

• Are you considering hiring employees?

• Should your retirement plan contributions be adjusted?

• Are there changes in your business structure that should be considered?

• Are there opportunities to reduce your overall tax burden?

The first quarter isn't about knowing exactly how the game will end. It's about having a strategy before the game begins.

Second Quarter: Make the Adjustments

By the second quarter, you have actual results to work with.

Maybe sales are stronger than expected. Maybe expenses have increased. Perhaps you've hired new employees, purchased equipment, taken on debt, or opened another location.

This is where tax planning becomes more valuable than simply preparing a tax return.

Your financial statements can tell you what has happened. Tax planning helps you decide what to do next.

Just like a football coach studies the first quarter and adjusts the game plan, business owners should review their financial position during the second quarter and determine whether their original tax strategy still makes sense.

The goal isn't simply to minimize taxes.

The goal is to make smart business decisions with an understanding of the tax consequences.

Third Quarter: It's Time to Execute

By the third quarter, there's no reason to be guessing about where your business is headed.

You should have a much clearer picture of annual revenue, profitability, cash flow, payroll, capital expenditures, and owner compensation.

This is often the time to take action.

Depending on your circumstances, that could mean:

• Accelerating or delaying certain expenses

• Planning equipment purchases

• Reviewing owner compensation

• Evaluating retirement contributions

• Reviewing estimated tax payments

• Considering charitable contributions

• Evaluating business investments

• Addressing inventory issues

• Reviewing entity structure and tax elections

Think of the third quarter as the point in the game where execution matters.

You don't win football games by having a great playbook sitting on the sideline. You win by executing the right plays at the right time.

The same is true with tax planning.

Fourth Quarter: Don't Wait Until the Clock Hits Zero

The fourth quarter is where the pressure increases.

For a football team, every possession matters.

For a business owner, the same can be true of the final months of the tax year.

By the fourth quarter, you should have a reasonably good understanding of where your business is likely to finish the year. That gives you an opportunity to make informed decisions before December 31.

This is where proactive tax planning can make a significant difference.

Instead of asking in April:

"How much do I owe?"

A better question is:

"What can we do before year-end to make the best decisions for my business?"

There may still be opportunities to make purchases, adjust compensation, fund retirement plans, make charitable contributions, address accounts receivable or inventory, or otherwise position the business for the upcoming tax filing.

But just like football, time matters.

Some plays can't be run after the clock has expired.

The Final Score Isn't the Only Thing That Matters

Here's the biggest lesson football can teach us about taxes:

You don't build a winning season by focusing on the scoreboard one game at a time. You build it through preparation, execution, adjustments, and consistency.

Tax planning works the same way.

At The Bottom Line, we don't believe your relationship with your accountant should begin when your tax documents arrive in January.

We believe your accountant should be part of your team throughout the year.

That means looking beyond the tax return and understanding your business, your goals, your cash flow, your financial statements, and the decisions you're making throughout the year.

Because the best tax strategy isn't something you discover after the game is over.

It's something you plan for while there's still time on the clock.

Four Quarters. One Year. One Team.

So as football season kicks off, remember:

First Quarter: Plan

Second Quarter: Review

Third Quarter: Adjust

Fourth Quarter: Execute

And when the final whistle blows, you want to know you made the best decisions you could with the information available—not that you waited until the final seconds to start playing.

From all of us at The Bottom Line, we're excited for another football season here in Northwest Ohio.

Best of luck to all of the Toledo-area high school teams and our local college teams this season!

Play hard. Play smart. Stay healthy. And most importantly—

Go Toledo! Go Rockets! And good luck to all of our local teams under the Friday night lights!

About The Bottom Line

At The Bottom Line, we're more than tax preparers. We're business advisors who believe in helping our clients understand their numbers, plan ahead, and make better financial decisions throughout the year.

Don't wait until the fourth quarter to call your accountant.

Let's start planning before the kickoff.