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6 Tips for Staying Organized All Year Long

6 Tips for Staying Organized All Year Long

Keeping your documents together, organized, and ready for filing your taxes is practically an art form. You may think that it takes hours of time and effort to keep organized, but, in actuality, you could easily save you and your tax preparer time by staying organized throughout the year. Keeping your receipts and records in order also helps you ensure that you are taking advantage of all of your available tax credits and deductions, ultimately saving you money.

Everyone’s organizational set up is different, and it ultimately depends on what works for you. You might want to try a few different methods before you commit to one. Your lifestyle and tax situation may also determine which organizational scheme works best for you. The tax professionals at A.L. SIMON & Associates can help you create an organizational style. Both you and your tax preparer will benefit from an organizational method that is just right for you! Try incorporating some of these suggestions into your plan.

  • Make keeping your receipts convenient.

If you travel frequently for work or need to keep certain types of receipts, find a place where you most frequently get those receipts. For those who travel, set up a manila envelope in your glove box or suitcase and simply never remove it, emptying it once a month. That way, every time you get a receipt, you have somewhere quick and accessible to place it—before you forget about it. Think of the most common place you are when you receive a receipt that you need to keep, and strategically place a box or envelop there.

  • Go digital with your expenses and tracking.

You don’t need complicated or expensive software to track your expenses in a digital way. Scan in your receipts and then enter them in an Excel spreadsheet on a monthly basis. You can also look into certain apps that will help you as well. Some apps allow you to simply take a picture of your receipt, and it stores it for you. It doesn’t get much easier than that!

  • Keep a spreadsheet or notebook of important identifying information.

Usually most people know or can find their personal Social Security numbers or tax identification numbers quickly, but do you know the tax ID number of your child’s daycare? You will need it to claim that child care credit. Make a note to find out this type of information and keep it in a spreadsheet or notebook so you can just pull it out for use at tax time. That way you save time at the first of the year by avoiding these phone calls or requests.

  • Keep an eye on expenses that might be deductible.

Knowing what you can deduct before the tax year begins will be extremely helpful, because sometimes taxpayers simply do not know what they can and cannot deduct. Often, clients will come in saying that they did this or that, but do not have any records of it. As far as the IRS is concerned, if you do not have any records of it, then it didn’t happen! Charitable contributions or volunteer expenses are one of the most “forgotten” deductions. Ask your tax professional if he or she thinks that you will be able to itemize and determine what kinds of records you should start keeping for that purpose.

  • Know what to expect for tax forms.

Most clients have enough experience with taxes to know what kinds of forms they will get in the mail for their taxes. However, if you did something strange this year, like sold or bought a home, you may end up with some tax forms that you did not expect. Check into what you should have and be sure that you have all of the documentation before you head to your tax appointment.

  • Update your numbers monthly.

If you are tracking expenses, you should take a few minutes once a month and enter your expenses. This turns what is usually a long project at tax time into much smaller, and more manageable tasks. It also helps you see how much money you are spending on certain items and allows you to adjust your budget or other planning appropriately.

  • Creating a Plan and Sticking to It

Staying organized allows you to file earlier, and wash your hands of tax season much faster. Your professional tax preparer will definitely appreciate it as well. Just keep in mind that you can adjust your plan as you go, but that does not mean that you should stop collecting documents entirely!

Develop your organizational plan for this year by speaking with the tax professionals at A.L. SIMON & Associates. Use the Contact button below to get started, or click on the profile link to find out more about our tax firm. We look forward to hearing from you!

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