Year - End Tax Planning

It is hard to believe 2007 is winding down. We now enter a busy time of the year for most business owners and managers. Wrapping up the financial side of the business and getting ready for a new year to start.

In addition to everyday close out of one year and starting a new one, comes the dread of the tax man. Payroll, State and Federal Taxes will occupy much of time at year end and the start of the new year. If you have employees the month of January can become extremely busy trying to get out W-2's, not to mention vendor 1099's.

Take time over the next few weeks to review your financial records. Are they up to date? Need to start or perhaps they are lagging a bit.

With the new year, you might need to evaluate your record keeping methods. Is your software current for the new year? Will you need to get an update or perhaps switch to a new business software package?

Once you review your records and their status. Make an appointment with your tax preparer, accountant, attorney or consultant to consider the decisions for spending, delaying spending, delaying income to minimize the tax bite. Many options may need to be considered based on your cash or accrual accounting.

Time spent reviewing your financial records situation with professionals, may well minimize the bite of the tax man come 2008. Money spent with professionals now can yield dividends in the months to come.