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Monday, December 6, 2010

Write Offs or Waste of Time?


We've covered the big questions about Annual Meetings, but here are three other questions we get every so often.  Hopefully you'll feel like an expert about Annual Meetings after reading these three blog posts!

·        Can I really go on vacation and call it my “Annual Meeting” in order to write it off?
Yes . . . and No.  Don’t buy the plane tickets for your family to fly to Fiji just yet!  Conducting a business meeting while on vacation does allow for certain write offs of business expenses on taxes. However, you should consult with your CPA to determine which expenses can be written off as legitimate business expenses. Typically, the write off isn't as exciting as you'd hoped . . .

·        Who looks at this stuff anyway?  It seems like such a waste of time!
Like most things with details and the government, a little work up front saves you a lot of pain in the long run.  As for who should look at the Annual Meeting documents: the business owner should review the documents regularly and government auditors will certainly ask for the completed Corporate Record Book if (or when) you are being audited. 
There are other people important to the future of your business who will want access to your Annual Meeting Minutes and Corporate Record Book! Banks should (and often do) review these documents to assess the risk of lending to your business.  Your insurance or risk management advisor should also be reviewing the documents often to ensure they are covering your business’ needs.

·        If we grow, do I need to include more people in the meeting?
Who is included in the meetings is entirely up to the ownership/management group.  All Shareholders and Directors should attend, as well as any outside advisors that the business ownership group would like to have present.  Ad your business grows, you may add Shareholders or more likely additional Directors.

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