As Your Fiscal Year Ends...

Filed in archive Business Tips on December 20, 2009

© Pingu1963


December is a month that has a unique rhythm all its own. It throws everyone's schedule off. Different religions celebrate on different days and have special customs that we must be sensitive about. On top of all this we often take a number of days off ourselves.

During all this vacation times, with emails going back and forth, and people being disconnected, we must consider what is best for our company. This is the time period when we start preparing for the end of our financial year. Whether your fiscal year ends on the calendar date or another month, the end of December is a good time to start getting your tax papers together. Here are a few tips to help you out as 2009 comes to a close.

1. Keep Your Paper Work Up to Date: If you haven't done it before now, you might want to take a day to sort thought your finances. (And make a New Years Resolution to keep better track of your company spending for next year.) It's always a good idea to keep these records up-to-date so you don't have to worry when the end of the year comes.

2. Increase Your Deductions: The more you spend the higher your deductions become. Pay down bills, give some bonuses to your employees and lower your tax rate. Also, consider giving to charity. If you do it by the 31st it also counts as a deduction.

3. Consider pre-paying your taxes: Often there are tax deductions when you pay early. While you talk to an account ask if it is a good idea for your business to pick this option.

4. Find an accountant: Though it's cheap to do your taxes on your own. When it comes to your business it is probably best to have specialist tell you exactly where you can cut costs.

Do you have other tax tips to prepare for 2010?