Tomorrow is December 1, and a good time to make a end of year plan. If you are a cash basis tax payer, and many small businesses are, then you only have until December 31, to pay any expenses or take any action to modify your tax picture for 2012.
I know it's a difficult time with Congress seeming to march over the dreaded Fiscal Cliff and taxes set to rise on January 1, if they do. But you can't trade on futures or worry about tomorrow. Today's problems are sufficient for today, to butcher a very nice quote.
What can you do today? Begin to summarize your income and expenses. If you have a general ledge program and are using it to enter your income and expenses, now is the time to start running reports and looking at you annual financial picture. Are you going to be fortunate enough to have a profit? Can you lessen that profit and therefore you taxes by buying a new asset you need to increase business in 2013? Don't buy anything you don't need or can't use just to lower your taxes.
What about employee Christmas bonuses? Gifts of money to employees need to be treated as payroll. But small gifts such as bottles of wine, a ham, a gift card of $50 or less do not need to be treated as payroll.
Even if you don't want to pay your taxes until the last minute - April 15, according to the IRS; October 15, if you don't mind a little penalty and interest - it's a good idea to get started on pulling tax information together. It will give you time to find information you need to prepare, or have prepared, a good tax return and keep you from pulling your hair out at the last minute.
I hope everyone has a Merry Christmas and a happy holiday season. I'll keep writing and we'll all keep working and hoping for a great 2013.
