Let’s talk about year end 2006. It is only August, why am I talking about year end stuff? Because once school starts in a fews weeks, it will soon be Halloween. Once Halloween is over the year is over and now is the time to start organizing your financial information for the tax returns next year. “What is she talking about?”, you may ask yourself. Halloween? Here is how it works. As Halloween draws near everyone is concentrating on what they will wear – everyone from 4 years old to 80 years old is planning their Halloween costume (the Queen is not because she already has an outfit). After Halloween is over, we will all slide into Thanksgiving. And we all know how complicated that can get. Travel arrangements, shopping lists, telephone calls, deciding where we will have the big feast, who will bring what – it goes on and on. Then after Thanksgiving is over, guess what we slide into next? Yes! Christmas Holidays. Even if you don’t celebrate Christmas, you will be affected by the holiday swirl. It will be a whirlwind of activity the month of December. Some businesses are smart and have closed down their entire companies from Christmas Day until the day after the New Year. No one gets any work done then anyway, why stay open? Then everyone kicks back in to gear the first week of the New Year. That is why I say – let’s start organizing our year end information right now in August.
A second, but equally important reason for starting now, is that to manage your tax obligations to your best advantage, you may want to have some discussions with the CPA or enrolled agent who prepares your tax return, about how much profit it looks like you will make this year. They may suggest that you spend some money (and who doesn’t love doing that?). If your profit for 2006 is going to be too high, this may be a good time to by that new computer or other equipment – before December 31, 2006, of course.
Trust me, I’m the Queen. Start right now. If you have any questions, contact the Queen immediately.
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