Solo Professionals Ideas

Towards the end of December, 2007:

1. Buy a 2008 calendar and planner (if you use one).

2. Get a new checkbook register for each bank account for 2008.

3. Buy more hanging folders and file folders so you can archive 2007 info. and start 2008 files.

4. Buy additional office equipment and supplies - to increase your 2007 deductions (if you have your own business).

5. Make all charitable contributions for 2007.

On December 31, if possible:

1. Write down the mileage on your automobile odometer (if you use your auto for business and take a percentage of actual expenses).

In early January, 2008:

1. Create 3-5 goals for 2008 in areas such as Career, Finances, Relationships, Health, Spirituality, etc. Only choose goals that you are passionate about and that you intend to achieve in the new year.

2. Make a hanging file folder for "Taxes - 2007." Use this to keep all of your 1099's and W-2's and other tax information that will be arriving in January.

3. Set up new files for business income and expenses for 2008. Examples: "Cash Receipts, 2008," "Auto Mileage, 2008" etc.

4. Start a new check register for 2008 for each account.

5. Create other new financial files as needed.

6. Move all 2007 tax-related files, check registers and statements, paid bills and other financial information to one place (such as a file drawer) and make room for 2008 files.

Mid-January

1. Begin to organize your 2007 tax information. At a minimum, print out a 2007 summary (if your records are on your computer).

2. Prepare 1099-Misc. forms for subcontractors to whom you paid $600. or more in 2007 or give the information to your accountant so he/she can prepare the forms (due at the end of January).

3. Pay estimated taxes due January 15.

4. Set a date to begin compiling 2007 tax information for your tax preparer. (Note: The earlier you begin tax organizing, the more likely your preparer will have time to work with you and prepare your return before April 15. Usually clients who cannot get information to their accountants before March 15 will need to go on extension.)

Later

1. Purge old business and tax files. Check with your accountant to see how long you need to keep information. Usually six years is sufficient. You can also Google "record retention" and find the IRS regulations.

?Jerri N. Udelson, 2008