As the year draws to a close, looking back at the overall financial report of the year gone plays an important role in effective financial management. The end of the year gives us a perfect time and opportunity to check the financial books to asses tax strategies for the current financial year. Exploring tax saving options at the last minute are a bad idea and the end of the year offers the perfect window of opportunity to evaluate and change taxation strategies as required. Irrespective of whether you are a salaried individual or a business owner or self employed professional, there are some essential financial to do things that must be a part of your overall financial planning routine.
Assess Your Tax Strategies: With the financial year ending closing is, the end of year is the perfect time to assess your tax strategies for the year. Irrespective of whether you are self employed or salaried, tax strategies play an important role in a financial well being. Any major purchases that can potentially give you tax rebate must be done in 2013 itself to counter any unexpected large chunk of taxable profit.
A lot of people commit the cardinal sin of checking their books only a few weeks before the March 31 deadline. By that time it is usually too late to embrace effective tax planning. The last month of the year offers a perfect opportunity to evaluate and assess the taxation strategies to make sure one does run out options in the last minute.
Make a Capital Purchase: Buying a capital purchase before the end of the year can bring multiple benefits especially if you are a business owner and seeking to buy a vehicle. Firstly one may get a cheaper deal as most buyers wait for the New Year to usher in before taking delivery of their vehicles and secondly one show the purchase under capital expenses which can compensate for taxation in the business ownership. Technically one can buy any asset that have a useful life for more than a year including vehicle, electronic equipment or machinery