Let’s face it, gathering up a whole year’s worth of receipts and other documents pertaining to your tax filing can be overwhelming if you are not prepared. You don’t want to miss out on important tax deductions just because you didn’t keep track of them throughout the year, especially if you are a small business owner who may be able to deduct gas mileage, business lunches, and home office expenses. If you still don’t have a clear process for taking care of your tax related documents, then consider implementing strategies for next year as you work on compiling this year’s documents.
Here are some organizing tips to make next year’s tax filing a breeze:
- If you can deduct gas mileage, set up your mileage log book and keep it visible in your car so that you never forget to use it.
- If you don’t already use a computerized financial management system such as Quicken or Mint.com, consider setting this up now so that next year’s tax records are easy to generate. It’s not too late to still catch up on inputting the data for your income and expense records for 2013 since it’s still fairly early in the year.
- Set up “receipt stations” in areas where you can easily save them – this could be as simple as 12 envelopes labeled for each month in a 3-ring binder in your kitchen or a section of your file cabinet devoted to tax receipts. But whatever method you choose, the key to success lies in commitment to a system that makes it more like a daily habit than a chore.
- Start planning your spring cleaning now by seeking out items you no longer use from your basement or garage and donate them to charity making sure to obtain your tax deduction for next year.
Setting up efficient systems to support your tax preparation for the next time around will ultimately reduce your accountant’s fees. Take control of your financial management today by booking your Personal or Business consultation with a kAos Group expert and you’ll be well prepared for tax time in 2013.