Payroll and associated taxes and material cost of goods are the two highest expenses for almost every business. Cutting these costs directly translate into additional profits for the owners. Depreciation vs. expensing costs: depreciation is the systematic and rational allocation of the cost of an asset over its useful life. Therefore, the purpose of depreciation is to have the taxpayer deduct a portion of the cost of an asset to reflect its normal wear and tear. Expensing allows a taxpayer to deduct currently, rather than depreciate over several years, equipment placed in service during the year. Finally, your business can fund your retirement with currently deductible payments in several ways.
Here are some articles on the topic to help you prepare:
Business Expenses
Current vs. Capital Expenses
Also for your reading pleasure, here's an interesting BusinessWeek article on the economy and where we stand today:
The Economy on the Edge
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The EDC will be hosting our annual holiday reception/open house for our board members, investors and friends on Thursday, Dec. 20th from 5-7:00 p.m. at the Bloomington Center for the Performing Arts. Everyone involved with C7 is invited to attend. Please RSVP to Michelle Spicer at (309) 452-8437 or michelle@bnbiz.org by Dec. 13th.
If you have any questions or concerns, please contact Marty Vanags or Brooke Weishaupt at (309) 452-8437. We hope you have a safe and happy holiday season and a happy new year!
