Happy New Year - almost! With the way 2009 began, our main job may have been simply to survive until the end of this year. Though we've nearly made it now, there is still time to make 2010 a little easier. Here are a few tips.
DonÂ’t carry...
...too much baggage into the New Year. In this case, we really mean inventory. If your business needs inventory to survive, then by all means make sure you have sufficient goods on hand to meet those needs - but donÂ’t overdo it.
Many states use your year-end balance sheet to determine the taxable value of your assets for property tax purposes. If your fiscal year ends on Dec. 31, use this month to whittle down the amount of inventory you carry. You can do this through sales or by removing obsolete or excess inventory this year.
Discarding inventory has added benefits. Years ago, Congress decided that you could not write off or write down inventory that is still salable - even if you had 100 years of stock on hand. Many people have been carrying inventory of little value to them at its full cost because of these rules. If you wonÂ’t be able to sell the stock in the foreseeable future, consider unloading it to get the tax deduction. Just remember that the inventory has to be gone by year-end.
Make sure...
...all of your computer programs are up to date going into 2010. Many programs require updates before they can be fully utilized for the New Year. An important consideration is the annual tax table maintenance for payroll. If you do your own payroll, review the requirements for updating the tax tables. Remember that in many cases you must first run your W-2s and close 2009Â’s records before updating your 2010 programs.
Take time...
...to plan the year ahead. Nobody can predict the future, but you can certainly prepare a budget for 2010. A good budget will help you get ready for the coming year, including determining staffing needs and production/inventory purchase levels. This budget will serve as a roadmap to success in 2010, so donÂ’t neglect this important step in shaping your companyÂ’s future.
Talk to...
...your tax and financial advisors. You might have planned out the rest of your year from a tax and financial perspective, but tax law and financial strategies are dynamic and change constantly. Give yourself every chance at a Happy New Year by taking one last look at your tax and financial picture. Make sure any plans not yet completed are still valid in light of current law and give your advisors a call – that’s what we’re here for. Let us help make your 2010 a truly Happy New Year.
Happy holidays!
