Year-Round Tax Advisory: What Happens Each Quarter

“Year-round tax planning” sounds good in theory. But what does it actually mean in practice?

For business owners considering tax advisory services, the question isn’t just whether ongoing planning delivers value—it’s what you’re actually getting for that ongoing relationship. Do you meet quarterly? Monthly? What happens in each session?

Here’s what year-round tax advisory looks like in practice, broken down by quarter—and how to know which service frequency makes sense for your business. While the examples focus on S-corps and partnerships (where most advisory strategies apply), we also serve C-corps and Schedule C businesses.

What Happens During Year-Round Tax Advisory?

Year-round tax advisory follows a quarterly cadence: Q1 (tax preparation + prior year analysis), Q2 (mid-year projection + strategy adjustment), Q3 (year-end planning + strategy implementation), Q4 (final execution + next year prep). Each quarter includes a strategic session reviewing financial performance, discussing planning opportunities, and coordinating with bookkeeping/accounting. Quarterly advisory costs $3,000-$12,000 annually depending on complexity. Unlike annual-only service, quarterly touchpoints allow proactive adjustments throughout the year, not just reactive December scrambling.

Key Takeaways

• Q1 focuses on preparation + analysis – File returns, analyze prior year, identify missed opportunities
• Q2 adjusts strategy mid-year – Project current year tax liability, adjust estimated payments, implement strategies
• Q3 is year-end planning – Recommend strategies to execute before December 31 (equipment purchases, retirement contributions)
• Q4 executes final moves – Confirm implementation, prepare for next year, coordinate with bookkeeping
• Quarterly is ideal frequency – Allows proactive planning without overwhelming touchpoints (monthly is overkill for most)
• Annual-only advisory misses opportunities – Waiting until December for planning means missed mid-year adjustments

Why Tax Advisory Happens Year-Round

Tax planning isn’t an annual event. It’s a continuous process because tax opportunities and obligations occur throughout the year.

Tax Opportunities Expire Quarterly

Many tax strategies have quarterly or time-sensitive deadlines:

• Q1: Retirement contribution deadlines (prior year contributions)
• Q2: Estimated payment adjustments based on Q1 actuals
• Q3: Year-end planning window opens (implement strategies before Dec 31)
• Q4: Final implementation deadline for current year strategies

If you’re meeting with your CPA once a year in November, you’ve already missed opportunities in Q1, Q2, and early Q3.

Business Decisions Have Real-Time Tax Implications

Major business decisions shouldn’t wait for your annual planning meeting:

• Equipment purchases: Section 179 and bonus depreciation have timing requirements
• Hiring decisions: Adding W-2 employees affects QBI deduction calculations
• Entity changes: S-corp elections, partnership admissions, LLC formations require planning
• Real estate transactions: 1031 exchanges, cost segregation, property transfers need advance coordination

Year-round advisory means you can ask “What are the tax implications of this decision?” before you make it—not after.

Proactive Planning Prevents April Surprises

The most common reason business owners seek advisory: “I owed way more than I expected last April.”

When you’re only looking at taxes annually, you’re reacting to surprises. When you’re planning quarterly or more frequently, you’re preventing them through:

• Updated tax projections as income changes
• Adjusted estimated payments to avoid underpayment penalties
• Mid-year course corrections when business performance differs from projections

Q1 (Jan-Mar): Prior Year Wrap-Up + Current Year Setup

The first quarter of the year focuses on closing out the prior year while beginning to plan for the current year.

What Happens in Q1

Prior-year return finalization:

• Complete tax return preparation for the prior year
• Identify any carryforward opportunities (NOLs, capital losses, unused credits)
• Document elections and special tax treatments for future reference

Current-year estimated payment schedule:

• Establish quarterly estimated payment amounts based on projected current year income
• Adjust payment strategy if prior year results were significantly different than expected
• Coordinate federal and state payments

Retirement contribution finalization (if applicable):

• Complete prior-year retirement contributions before deadlines
• For S-corps: Solo 401(k) contributions due by business return deadline (March 15) + extension
• For partnerships: Partner contributions due by individual return deadline (April 15) + extension

Q1 Advisory Touchpoint

For clients with annual advisory, Q1 is typically when the comprehensive tax return review and initial current-year projection happens.

What we cover:

• Review completed return, explain key numbers and tax positions
• Identify any strategies to implement for the current year
• Confirm estimated payment schedule
• Discuss any business changes planned for the year (hiring, expansion, major purchases)

Typical duration: 60-90 minutes

For more on the difference between annual planning and ongoing advisory, see: Tax Advisory vs. Tax Preparation

Q2 (Apr-Jun): Mid-Year Projection + Course Correction

The second quarter is when you compare projected income to actual results and make adjustments.

What Happens in Q2

Mid-year tax projection update:

• Analyze Q1 financial results
• Update income projection for the year based on actual performance
• Recalculate projected tax liability

Estimated payment adjustment:

• If income is tracking higher than projected, increase estimated payments
• If income is lower, evaluate whether to reduce payments (consider safe harbor rules)
• Adjust Q2 payment accordingly

Entity structure review:

• Confirm current entity structure is still optimal
• Evaluate whether S-corp election makes sense for growing LLCs
• Discuss entity restructuring opportunities if significant business changes occurred

Retirement contribution mid-year check-in:

• Review year-to-date retirement contributions
• Confirm you’re on track to maximize contributions by year-end
• Adjust contribution strategy if income changed significantly

Q2 Advisory Touchpoint (for quarterly clients)

What we cover:

• Updated tax projection based on Q1 actual results
• Estimated payment adjustment recommendation
• Discussion of any mid-year opportunities (entity changes, retirement plan setup)
• Preparation for Q3 year-end planning deep dive

Typical duration: 30-45 minutes

Q3 (Jul-Sep): Year-End Planning Deep Dive

The third quarter is the critical year-end planning window. This is when you identify all strategies you need to implement before December 31.

What Happens in Q3

Comprehensive tax projection:

• Detailed projection based on 6-9 months of actual results
• Identify expected taxable income for the current year
• Calculate projected tax liability with high accuracy

Year-end strategy identification:

• Analyze which strategies apply to your situation
• Prioritize strategies by ROI and implementation complexity
• Create implementation timeline for Q4

Common Q3 strategies discussed:

For S-corps:

• Reasonable compensation adjustment for remainder of year
• Solo 401(k) or SEP contribution planning
• Augusta Rule implementation (rent home to business for up to 14 days)
• Health insurance deduction optimization
• Distribution vs. salary timing for QBI optimization

For partnerships:

• Partner basis tracking review
• Section 754 election analysis
• Cost segregation feasibility (if real estate holdings exist)
• Self-employment tax planning
• Guaranteed payment vs. distribution structuring

For both:

• Major equipment purchases (Section 179, bonus depreciation)
• Charitable giving strategy
• Income deferral or acceleration opportunities
• Retirement plan contribution maximization

Advanced strategy coordination:

If applicable, Q3 is when we initiate:

• Cost segregation studies (requires 2-3 months to complete)
• Defined benefit plan feasibility analysis
• Multi-entity restructuring planning
• Real Estate Professional status documentation review

Q3 Advisory Touchpoint

This is the most important advisory session of the year—where you identify everything you need to do before December 31.

What we cover:

• Comprehensive tax projection for the year
• Detailed list of applicable strategies with estimated tax impact
• Implementation timeline and coordination requirements
• Priority ranking (which strategies to implement first)
• Discussion of advanced strategies requiring additional services

Typical duration: 90-120 minutes for annual clients; 60 minutes for quarterly clients (who’ve had Q1 and Q2 touchpoints)

To understand which strategies apply to your entity type, see our entity-specific guides:

• Tax Advisory for S-Corporation Owners
• Tax Advisory for Partnership Owners

Q4 (Oct-Dec): Implementation + Following Year Setup

The fourth quarter is execution mode—implementing all the strategies identified in Q3 before the December 31 deadline.

What Happens in Q4

Strategy execution:

• Complete equipment purchases before year-end (Section 179/bonus depreciation)
• Finalize retirement plan contributions
• Execute Augusta Rule (if applicable)
• Make charitable contributions
• Coordinate any entity structure changes
• Implement income/expense timing strategies

Year-end estimated payment:

• Calculate Q4 estimated payment amount
• Confirm safe harbor requirements are met to avoid penalties
• Coordinate any additional year-end payments if needed

Following year preview:

• Discuss any tax law changes effective for the following year
• Preview income projections for following year
• Identify planning opportunities for the upcoming year

Documentation:

• Ensure all implemented strategies are properly documented
• Collect receipts, invoices, and evidence supporting deductions
• Organize records for tax preparation

Q4 Advisory Touchpoint (for quarterly clients)

What we cover:

• Confirmation that all Q3 strategies were implemented
• Final tax projection for the year
• Q4 estimated payment calculation
• Documentation checklist review
• Preview of following year planning

Typical duration: 30-45 minutes

Advisory Service Frequency Options

Not every business needs the same level of advisory interaction. Here’s how to know which frequency makes sense for you.

Annual Planning (1 Meeting Per Year)

What’s included:

• One comprehensive planning session (typically Q3)
• Tax return preparation
• Email/phone access for occasional questions

Who it fits:

• Straightforward S-corps or partnerships
• Consistent year-to-year income
• No major business changes planned
• Clients who prefer minimal touchpoints

Typical cost: Starting at $3,000 annually (including return preparation discount for advisory clients)

Pros: Lower cost, less time commitment Cons: Limited proactive outreach, you initiate most contact

Quarterly Advisory (4 Meetings Per Year)

What’s included:

• Quarterly planning sessions aligned with estimated payment deadlines
• Continuous tax projections updated throughout the year
• Tax return preparation
• Proactive outreach when opportunities arise

Who it fits:

• Growing businesses with variable income
• S-corps requiring reasonable compensation monitoring
• Partnerships with basis tracking needs
• Clients who want regular check-ins and proactive recommendations

Typical cost: $5,000-$8,000 annually depending on complexity

Pros: Proactive planning, no surprises, course correction throughout the year Cons: More time investment (4 hours annually in meetings)

Monthly Advisory (12+ Touchpoints Per Year)

What’s included:

• Monthly calls or meetings
• Continuous tax and financial monitoring
• Priority access (same-day or next-day response to questions)
• Tax return preparation
• Proactive strategy recommendations
• Coordination with other advisors (attorneys, financial advisors, payroll providers)

Who it fits:

• Complex multi-entity structures
• High-growth businesses with significant monthly changes
• Real estate investors with frequent transactions
• Clients who value immediate CPA access for all decisions

Typical cost: $10,000-$18,000+ annually depending on complexity

Pros: Maximum proactive guidance, immediate access, comprehensive oversight Cons: Highest cost, most time investment

Want to understand the value of different advisory levels? Read our ROI analysis: Is Tax Advisory Worth the Cost?

What Advisory Doesn’t Include

To set realistic expectations, here’s what typically isn’t included in standard advisory engagements:

Not included in base advisory fees:

• Audit representation (if IRS examines your return, separate engagement)
• Bookkeeping or accounting services (you provide financials, we analyze them)
• Legal services (entity formation, contract review—your attorney handles these)
• Advanced strategy implementation (cost segregation studies, defined benefit plan setup—priced separately as one-time projects)

Most CPAs coordinate these services when needed but don’t provide them directly as part of advisory.

How to Choose Your Service Frequency

Ask yourself these questions:

Choose annual advisory if:

• ✅ Your income is relatively predictable
• ✅ You don’t foresee major business changes
• ✅ You’re comfortable researching minor questions yourself
• ✅ You want planning support but don’t need ongoing touchpoints

Choose quarterly advisory if:

• ✅ Your income varies significantly throughout the year
• ✅ You’re growing and anticipate changes
• ✅ You want proactive recommendations, not just when you ask
• ✅ You value having a CPA who knows your situation continuously

Choose monthly advisory if:

• ✅ You have multiple entities or complex structures
• ✅ You make frequent business decisions with tax implications
• ✅ You want immediate CPA access for all major decisions
• ✅ You value comprehensive oversight and priority service

Most S-corp and partnership owners find quarterly advisory delivers the best balance of proactive guidance and cost-effectiveness.

Making It Work: What You Need to Provide

Year-round advisory works best when you provide timely information to your CPA.

What advisors need from you:

Quarterly:

• Profit & loss statement (P&L) through end of most recent quarter
• Balance sheet
• Updates on any major business changes

Annually:

• Complete books and records for tax preparation
• Documentation supporting deductions
• Proactive communication about major business decisions before you make them

As needed:

• Questions about business decisions with tax implications
• Notice if your income is tracking significantly different than projections
• Response to year-end planning recommendations

The businesses that get the most value from advisory are those that provide accurate financials on time and communicate proactively.

Looking for help choosing the right CPA for advisory? Read our guide: How to Choose a Tax Advisor for Your Business

Related Resources

For more on tax advisory and planning:

• Tax Advisory Services – Overview of what tax advisory includes and how it works
• Quarterly Tax Planning Checklist – What to review each quarter
• Year-End Tax Planning Checklist – Q3/Q4 action items before December 31
• Tax Planning Guide – Broader overview of proactive tax planning approaches

About SDO CPA: We provide year-round tax advisory services for S-corporation and partnership owners. Our quarterly and annual advisory programs include proactive planning, tax return preparation, and implementation support.

Schedule a consultation to discuss which advisory frequency makes sense for your business.