This is a job that should be done in early October and not put off until the end of December, because some of the steps you decide to take might require time to carry out.

"In the last weeks of the year, it's often too late to start," said Gregg R. Wind, a certified public accountant in Los Angeles.

There's another practical reason for doing your year-end planning now - it's a relatively slow period for many accountants, and yours is likely to have more time to help you. As Wind said, "it's a wonderful time to get in and see your CPA."

Accountants recommend that business owners look at companies' finances not only for 2004, but for 2005 and beyond.

The first thing you need to do is determine whether your business is likely to show a profit for 2004.

"If you're in the black, you might want to do things to pull net income down," said Bob Doyle, a CPA with Spoor, Doyle & Associates in St. Petersburg, Fla.

That means seeing what kind of legitimate expenses you can come up with. Doyle and other accountants suggest business owners consider making equipment purchases before the end of the year.

Although accountants advocate moving up purchases into the current year, Doyle cautions that owners should do so only if it makes good business sense.

"You don't want to let the tax tail wag the dog," making foolish business decisions solely to save on taxes, he said.

Conversely, if it looks like you're running a loss for the year, you might want to consider postponing a purchase until 2005 if you're expecting to be profitable and will need deductions.

Accountants also urge owners to set up some kind of retirement plan. If you don't have the money to fund a plan right now, you can still set up what's known as a SEP, or Simplified Employee Pension, by Dec. 31, but won't be required to fund it until you file your return next year.

Robert Pesce, a partner with Marcum & Kliegman LLP, a New York accounting firm, said owners who already have retirement plans also should be making some decisions by the end of the year.

"Maybe their existing plan is outdated and maybe they should be thinking about revising it," he said.