As the forms trickling into your office mailbox will attest, the coming few months are taxing times for small businesses.

But as you gather the paperwork necessary to file your 2006 returns - and perhaps curse yourself for being less organized than you'd planned last January - now is the best time to ensure you aren't mired in the same mess next year. If you could've done a better job last year, the evidence is piling up right before your eyes.

Keeping your tax files fit for the coming 12 months not only cuts frustration in another year, it likely will cut your taxes, according to Vancouver certified public accountants who offered some free advice to small business taxpayers.

Here are some things the local experts suggest you consider in the next few months:

1. Make a plan.

"There's no fortune-telling here, but you're better off having a plan," said Jim Caley of Caley & Associates in Vancouver. At minimum, he said, your plan should summarize total revenue, collections by client and expenses from the past year to support projections for 2007. Update it quarterly.

While you're at it, consider major expenses you expect and time and budget those purchases to your advantage.

2. Keep better records.

"Probably the biggest single thing small-business people can do is keep good records. Poor record-keeping increases your taxes, I believe," Caley said.

If you hire someone to do your taxes, you nevertheless will benefit from having your files orderly and complete.

"It's less likely that things get overlooked if they're organized," said Newt Rumble of Peterson & Associates PS. Neatness also cuts your tax-preparation bill because your return will take fewer hours to file.

"There's no accountant who's worth his salt who's billing under $150 an hour," Rumble said.

Which record-keeping method you choose isn't as important as making sure it's easy to maintain throughout the year. There are commercial programs designed to simplify the process, and Rumble often builds a personalized tax spreadsheet for clients.

Or simply try this: Buy 12 envelopes and label them by the month. Put records of all deductible expenses each month inside the appropriate envelope; on the back, write a list of contents as you go and total each month's expenses. (Or you can reach the same result with a paper accordion file.)

"At the end of the year, you'll have a pretty good, organized set of records," Caley said.

3. What's your corporate structure?

Consider whether to change your business's corporate structure. There may be tax benefits, for example, to switching from a C-Corporation to an S-Corporation. For most small businesses, the changes must be made by March 15 to affect this year's taxes, said Sid Boles of Moss Adams LLC.

In most cases, this is a decision best made in consultation with a tax adviser or attorney, Boles and Caley suggested.

4. Set up retirement plans.

If you don't have a retirement plan in place, or want to make a change, do it now. Some plans take several months to establish, and an earlier start allows more savings - especially with automatic payroll deductions.

"Something every week gets you in the habit of saving," Caley said.

Rumble cited a recent study reporting that just half of workers have socked away more than $42,000 for retirement by the time they reach age 40.

"That ought to scare every young family and potential retiree out of their socks," he said.

"It's less likely that things get overlooked if they are organized."

5. Do you work at home?

If you qualify - and there are plenty of restrictions - setting aside home office space may enable you to depreciate a portion of your home and also to deduct normal operational costs, such as mortgage or rent, property taxes, utilities and maintenance or repair costs. The sooner you set up your office, the longer you can claim those deductions.

6. Put your teens to work.

Instead of paying them an allowance, pay older children to work for your business, Boles suggested. Their compensation will be a deduction for the business, and their tax rates likely are lower than yours.

Sole proprietors don't pay Social Security or Federal Unemployment Taxes on wages paid to their own children under age 18, but those wages must be reasonable for the child's work.

"Instead of paying them an allowance, pay older children to work for your business."

7. Schedule a tax review.

If you have a tax adviser, open your business calendar now and write yourself a reminder in about October to schedule a meeting next fall. A brief conference late in the year will result in a fee but may save taxes and time, accountants said.