Now there's investment reports, mortgage statements, business receipts, mileage... it's never ending. As you get older, things just get more complicated. If there is one thing I've learned, it's that you have to set yourself up for success from the beginning. Not only does this support you throughout the year, but it makes the end result that much easier...
Here are just a few simple steps you can take to set your system up so that tax docs are ready to rock and roll...
1. Identify what you need for tax purposes.
- Receipts (business, personal)
- Donations (business, personal)
- Personal Investments
- Mileage Records
- Organize your files by NAME or by CATEGORY
- Use colored files/folders to differentiate tax records from standard files
- Label your files/folders so that know what's a tax record
If you keep your records filed away, they are always accessible when you need them throughout the year PLUS at tax time, you can simply pull out your files, sort and organize your tax records WITHOUT weeding through all the "other" stuff.
Helpful tax resources:
I always recommend having a good resource for questions... if it's not your ACCOUNTANT then the Internal Revenue Service is always a good place to start. If you prepare your taxes on your own, having good software is key. I recommend Intuit.
Helpful apps: Shoeboxed (for receipts), TripLog (mileage tracker tool)