Yes, there’s only four days left until it’s Christmas Eve and with the holiday rush and shuffle combined with another big rush towards the New Year next week, it’s hard to focus on the matters at hand that need to be taken care of.
Specifically, the year is over after December 31st, so now is the time to take care of the small business tax matters that can reap large rewards in 2006.
1. Update the Books – Since it’s the holidays and a lot of projects are finishing and very few new ones should be starting until after the first. Spend some time making sure that all the accounting is up to date. If you think you need it and your accountant is available, take some time to go over them together.
2. Procrastinate – For once, if you can put off collecting payments till the first week of January, you won’t have to claim it as income on the 2006 taxes. Yes, you’ll have to pay for it the following year, but for some sole proprietorships and LLCs, it only takes a little to push you from one bracket to the next.
3. Donations – Planning any start of the year donations? Go ahead and make them now. Collect the receipts and use them on your taxes.
4. Office Clean-Up – Don’t wait till the New Year starts to stock up on business supplies, get all the bills paid, pick up equipment and pre-paying any early in the year travel, etc. These are all expenses that can be written off and if you are looking for a little balance against the generated capital, this is a good way to go. (It’s also a plus because the maintenance work is done when you get back to it from the holidays.)
Every business is different and there may be different pros and cons. Double-checking ideas and plans with the accountant can save more than a few pennies when April 15, 2006 comes round.