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How to Maximize Your After-tax Dollars in 2006
By: William J. Lynott
Posted: December 4, 2006, from the December 2006 issue of Skin Inc. magazine.
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Consider prepaying expenses. As a spa owner, you probably use the cash method of accounting. According to Sethi, “Under the cash method, a business recognizes income only when it constructively receives the payment. Expenses are deductible only after you make the actual payment. One way to take advantage of this is to prepay in December any expenses due in January. This will increase your deductions for this year. For example, if your rent is due at the beginning of the month, date and mail the check for January rent several days before the end of the year.”
The most profitable investment
Maximizing your after-tax dollars requires a little early planning and effort on your part, but the time you spend chipping away at your income taxes may be the most profitable investment you’ll make this year.