Keeping Track of it All
A detailed account of income and expenses is required for tax preparation.
You’ll need to compile this important information, whether you handle your taxes personally or pay a professional to complete the task. The worst impulse is to procrastinate until the last second this tax season, since getting all of the needed receipts, bills and other paperwork together can be so stressful and time consuming. Best to organize all of it as you go along in a year-long process that keeps everything organized and at the ready.
FORMING RECORDKEEPING HABITS
Take careful notes and file paperwork when it is received, organizing everything as accurately and thoroughly as possible. You’ll begin forming better organizing habits as you go along. Need help getting started? Seek out advice, either in person or online, from a qualified tax professional for more details on how to keep track of it all. They’ll also be the most up to date on changes to the tax code. Begin preparing monthly financial statements, in particular if you are a business owner. You’ll budget in a more responsible manner, while tracking how your personal finances or business venture is doing. Tax organizers found online are also helpful.
START THE PROCESS EARLY
The year-end tax process begins with keeping everything in order, week after week. Begin the day after you file your taxes with an honest assessment of how the process unfolded for you. Was it hard to find the required information? What would make organizing everything easier for the next year? Keep the previous year’s return on hand for the purposes of comparison. You will be able to identify changes in real time that could impact the bottom line when tax time rolls around again. Make timely notes about big changes in your home life or at work that would show up on a return, including the birth of a child, selling a house or a major equipment purchase.
TRUST QUALIFIED TAX EXPERTS
Once you’ve compiled all of your information and organized everything, you’ll be ready to file. The
IRS provides free electronic filing if you meet certain filing and salary requirements.
If you’re not comfortable with the process, or if things have gotten more complicated lately, consider meeting with a qualified tax professional.
They can help in preparing your taxes, while answering any questions you may have.