What Should I Review Before Making My Next Estimated Tax Payment?
Discover what every business owner should review before the end of Q3 and how to prepare for your upcoming estimated payments.
The third quarter is an important time to review your business's tax and financial situation. For many business owners, waiting until the end of the year to analyze income, expenses, and tax payments can mean missing planning opportunities and facing unexpected tax obligations.
In addition, the end of Q3 coincides with an important date on the tax calendar. For 2026, the third Estimated Tax payment is due September 15 for both individuals making payments through Form 1040-ES and many calendar-year corporations. The IRS also warns that not paying enough tax during each period may result in an underpayment penalty.
For this reason, the third quarter can serve as a checkpoint: there is still time to review how the business is performing, correct estimates, and develop a strategy before year-end.
What Should a Business Owner Review Before the End of the Third Quarter?
Closing Q3 should not be limited to checking how much money is available in the bank account. It is a good time to compare the actual results of the business with the projections made at the beginning of the year.
Higher or lower income than expected, new expenses, changes in payroll, investments, hiring employees, or significant changes in operations can affect the business's tax situation.
A third-quarter review should primarily consider:
Income and expenses accumulated during the year, financial statements, and the actual profitability of the business.
Estimated Tax Payments made so far and whether they continue to be adequate considering current results.
Payroll, withholdings, accounting records, and pending documentation.
Significant changes in the business that may have tax consequences before the end of the year.
Possible Tax Planning strategies that can still be implemented during the fourth quarter.
The goal is not simply to have the books up to date. It is about understanding where your business stands from a tax perspective and what adjustments may be necessary before reaching year-end.
Are You Paying Your Estimated Taxes Correctly?
Estimated Tax Payments are one of the most important points that every business owner should review during the third quarter.
Individuals, generally including sole proprietors, partners, and shareholders of S Corporations, may need to make estimated payments when they expect to owe at least $1,000 when filing their tax return. For corporations, there is generally a requirement to make estimated payments when they expect to owe $500 or more.
For individuals and corporations, the IRS divides the year into four estimated tax payment periods. In 2026, the general dates are April 15, June 15, September 15, and January 15, 2027. Corporations have their fourth quarter due on December 15.
But making a payment does not necessarily mean that the amount continues to be correct.
If your business is generating more income than projected, the estimated tax liability may also have changed. On the other hand, if the results have been lower than expected, it may be necessary to review the projections again.
At Jambrina CPA, we can help you review your estimated payments and analyze whether they continue to be aligned with your business's current situation before reaching year-end.
Your January Numbers May Be Very Different From Your September Numbers
A common mistake is calculating estimated taxes at the beginning of the year and assuming that those numbers will continue to be correct during the following months.
A company may significantly increase its sales during the summer, bring in new clients, lose an important contract, hire employees, make new investments, or face expenses that were not originally anticipated.
The IRS considers situations in which it may be necessary to recalculate the required payments when the projected tax liability changes. In the case of corporations, for example, its instructions expressly state that it may be necessary to recalculate the installments when the expected annual tax liability increases or decreases.
For this reason, reviewing the actual results at the end of Q3 allows you to work with much more up-to-date information and make decisions before December ends.
Q3 May Be Your Last Major Opportunity to Plan Before Year-End
One of the biggest advantages of reviewing the business during the third quarter is time.
There are still several months to analyze possible Tax Planning strategies, organize the accounting, and prepare for the obligations that will come during the final quarter and the next tax season.
Waiting until January to discover that income was considerably higher than projected limits the available options. A review during Q3 allows you to work proactively instead of reacting when the tax year has already ended.
This does not mean making expenses solely to obtain a deduction. It means knowing the business's numbers and evaluating in advance which financial and tax decisions make sense according to the company's particular situation.
How Jambrina CPA can help you
Properly closing the third quarter can give you a much clearer picture of how your business will reach the end of the year.
At Jambrina CPA, we help business owners review their accounting, analyze their Estimated Tax Payments, and develop Tax Planning strategies based on the actual results of their business.
Our team can help you identify potential tax obligations, review whether your estimated payments need adjustments, and keep your financial information organized before year-end.
Work with an accountant in Spanish and English and turn the end of the third quarter into an opportunity to prepare, make better decisions, and reach the end of the year with a clearer tax strategy.