13 Year-End Financial Must-Dos

YE AR - END $ 13 FINANCIAL MUST- DOS 2 Pay Down ANY LINES OF CREDIT $0.00 DOWNLOAD Lenders like to see that you're using lines of credit as intended-for temporary or seasonal needs, so pay them down to zero if possible. If you maintain a balance year-round, it suggests to lenders that the accounts are being used for long-term financing. • COPIES OF YEAR-END • STATEMENTS 5 Statements are often available online for only a limited time. HURRY UP 3 - AND SELL EXAMINE INVENT SOMETHING! COLLECT RY DELINQUENCIES If you incurred costs to start a You can reduce your taxable business in 2012, but haven't Make a last-ditch effort to income and improve your yet made a sale, sell something. You can't deduct any of those expenses in 2012 unless you do. collect, even if you have to inventory-turnover ratio by writing off any obsolete items. negotiate on the amount. If you can't collect, write them off as bad debt. Not doing so will hurt your accounts-receivable turnover ratio-a red flag for lenders and investors. OFFER YEAR-END SPECIALS Make CHARITABLE Everything Must Go! CONTRIBUTIONS Going Going GONE! It's better to give and receive. Keep track of each charitable donation you made this year. Not only will your donations help others, but it'll help you when you're paying your taxes come April. Specials on slow-moving inventory will improve your inventory- turnover ratio. That will please your banker. PAY * * * * * ASK PROGRESS --------- FOR PAYMENTS PONUSES $ |$|| $|$ We all worked hard this year, and your staff will feel your gratitude if you pay them a timely bonus for them to enjoy during the holiday shopping Collect payments on projects already underway. See if you can secure deposits for projects that will begin in 2013. season. 10 11 12 SELL BILLS UNDER PERFORMING PROPERTY AND WAIT TO DEPOSIT DELAY EQUIPMENT PAYING BILLS NEW CHECKS Consider selling any equipment If the bills can wait until 2012, or property that's not performing up to snuff if it's fully depreciated. Deposit checks that are just coming in after the first of the wait to pay them until after the first of the year. year. 13 GET FUNDS INTO + 401K + BY YEAR'S END Before 2013, make sure to transfer any extra savings (good for you!) into your 401k to ensure preparedness for your future retirement. **Be sure to consult a qualified professional about whether these strategiess are right for you. Published on OPENForum.com Design by Katie Daly Text by Kate Lister Sources: Brian Price, founding partner of PriceKubecka in Dallas; Robert Mahoney, president of Belmont Savings Bank in Belmont, Massachusetts; and Gail Rosen, a CPA in New Jersey. OPEN Forum %24 %24