Briones Consulting Group’s End-of-Year Tax Prep Guide for Homecare Agencies
A straightforward, no-fluff overview to help you get your agency ready for tax season.
Quick Disclaimer
Briones Consulting Group LLC is not a CPA firm or a tax preparer, and this guide is not tax, legal, or financial advice.
Please make sure to connect with a licensed tax professional in your state for anything specific to your situation.
1. Your Simple End-of-Year Prep Checklist
The smoother your books are now, the easier tax season becomes later. Here’s what to focus on:
✔ Gather and Organize Your Financial Documents
Make sure all the basics are clean and updated:
- Profit & Loss statement
- Balance Sheet
- Bank and credit card reconciliations
- Payroll reports and W-2s
- Mileage logs (owners and staff)
- Any loan or financing statements
- Receipts for equipment, repairs, or upgrades
✔ Review Payroll & Employee Status
Homecare has strict rules around worker classification.
All caregivers must be W-2 employees PCA, CNA, HHA, companion, live-in, everyone.
Double-check:
- Overtime accuracy
- Wage compliance
- PTO/sick time accruals
- Any bonuses or stipends issued this year
✔ Review Any Assets You Purchased
This includes:
- Laptops, tablets, office electronics
- Office furniture
- Vehicles used for business
- Software and equipment
Many of these can qualify for Section 179 or bonus depreciation, which may help lower your taxable income.
2. Deductions Homecare Agencies Commonly Miss (But Shouldn’t)
Here are the big buckets most agencies should pay attention to:
Everyday Business Deductions
- Marketing and advertising
- Professional & consulting services (yes, BCG generally falls here)
- Scheduling, payroll & CRM software
- Home office deduction (if applicable and compliant)
- Liability, workers’ comp, cyber liability, auto insurance
- Hiring & onboarding costs
- Write-offs for unpaid private-pay invoices (after genuine collection attempts)
Mileage
If you or your staff drive for:
- Client assessments
- Referral partner meetings
- Supervisory visits
- Supply pickups
…it’s deductible. Use a mileage tracker to simplify things.
Staff Training & Development
Training that improves job skills usually counts:
- Caregiver training
- CEUs for nurses
- Leadership development for office staff
Office & Admin Expenses
- Rent or lease
- Utilities & internet
- Office supplies
- Cleaning services
- Printing, postage, shipping
Vehicle Expenses
You can deduct standard mileage or actual expenses (your tax pro will help you decide which yields a better benefit).
3. Year-End Moves That Can Reduce Your Tax Burden
None of this is complicated, it’s just about planning ahead.
Tip 1: Prepay Certain Expenses
If your cash flow is stable, consider prepaying:
- Insurance
- Software
- Marketing
- Consulting support
This can increase your deductions for the current year.
Tip 2: Invest in Operational Improvements
A lot of high-value business expenses are also tax-deductible:
- Process and workflow consulting
- Policy & procedure development
- Strategic planning
- Billing and revenue cycle cleanup
- Technology upgrades
Yes, work done with Briones Consulting Group is typically a deductible business expense, and it often helps you tighten your operations in ways that reduce waste and financial leakage.
🎯 Tip 3: Make Needed Equipment Purchases Now
If you already know you’ll need:
- Laptops
- Tablets
- Office furniture
- A company vehicle
Buying before year-end may qualify you for additional deductions.
🎯 Tip 4: Review Retirement Options
Retirement plans for owners can reduce your taxable income.
Common options include:
- SEP-IRA
- SIMPLE IRA
- Solo 401(k)
Ask your tax advisor which fits your agency structure best.
🎯 Tip 5: Clean Up Your A/R
If some private-pay balances truly aren’t collectible, writing them off now:
- Lowers taxable income
- Gives you a more accurate financial picture
- Helps your tax pro finalize the books faster
4. How Briones Consulting Group Helps (Even Though We’re Not Tax Pros)
While we don’t do taxes, our work tends to support better tax outcomes because we help you:
✔ Optimize revenue
We identify:
- Rate issues
- Scheduling inefficiencies
- Revenue leaks (which most agencies have)
- Etc.
✔ Improve decision-making
We help you better structure:
- Service lines
- Compensation models
- Reporting and forecasting
- Documentation that your tax preparer will request anyway
✔ Reduce operational waste
Fixing overtime problems and workflow inefficiency saves real money — and those process improvements are often deductible.
5. Final Reminder
This guide is simply a helpful overview.
For anything involving filings, tax minimization, or entity-specific advice, make sure you work with a licensed tax professional.
