The End-Of-Year is coming up soon, and -- if you were fortunate enough to profit this year and, therefore, owe taxes next year -- that means it's time to spend, spend, spend!
What have you done in years past (or plan to do this year) to reduce your bottom line?
Some things we've done in years past:
I'd love some more ideas; you're not supposed to deduct prepaid expenses... so, if you prepay your 2010 phone bill in 2009, you can only deduct it in 2010. But you can depreciate for the entire year of 2009 even if you buy on Dec 31st.
UPDATE Didn't mean to imply buying unecessary crap, or crap at all; just good ways to avoid paying 40%+ tax on things you might need or might help in 2010..
I disagree that the best use of year-end profits is to spend it on crap that doesn't add to the bottom line or company morale.
I know you don't like paying 33% for taxes (more if not in USA), but you're left with 66% that you can use on the company, as opposed to spending it on unnecessary crap and being left with 0%.
Why not at least bulk up your marketing? Buy N months of ads on M sites for 2010, pre-paying so you don't pay taxes. That's better than liquor.
I don't think your depreciation statement is right either unless it's over something like $120k, but I'm not an accountant... For example, almost all monthly-billed services will give you a discount if you pay for a whole year, but I've never deducted that expense over time as you suggest.
Hm. How about hiring a really good accounting professional for an advice on legitimate tax reduction tactics? Is it not "extravaganza" enough?
You can throw a nice Christmas party for your staff or give out bonuses.
Eventually we will have a more formal policy of donating to charities or perhaps create a foundation of our own. However, we don;t yet have the capital to do either - we'd rather put it back into growing the business.