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Monday, September 29, 2008

October is upon us and it is time for some Q4 planning.

Tomorrow is the last day of the 3rd quarter of 2008.  Wednesday marks the first day of the last quarter in 2008.  I never really understood the significance of quarters until I went into solo practice, but now I do.  For business owners, the 4th quarter means planning and preparation because Uncle Sam wants his money and $10,000 on December 31 is worth only ~$6000 on January one.  Unfortunately, the $10,000 insurance bill remains $10,000 and the $2500 rent remains $2500, and even goes up due to tax increases.  So I recommend planning and preparing.
  • Pay January bills in December
  • Hold check-posting reimbursements in the last few December week's until January
  • Max the 401K
  • If no 401K, you have several weeks to start a Simple IRA and the rest of the year to max it out
  • Pay off high interest debt with profit
  • Invest in new equipment now
  • Invest in that marketing project you have been considering before years end
  • Pay down some of your business line of credit
  • Of course pay off credit card debt
  • Make any office capital improvements that are needed between now and December 31
And the rest, take in profit and pay Uncle Sam-->Wall Street.

The IU