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.
The IU
- 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
The IU
