EEEEK!!! its Tax Time

Woman frightened by taxes

It's the time of year where some panic. Tones of paper and feeling the burden of the crunch leads us to procrastination and panic. Asking ourselves Where do I even start?

Here are a few tips to get you in the game:

  1. Separate your documents into three major categories: Income, Expenses and Taxes
  2. Keep documents of the current year and only the previous year in your office or filing cabinet.  Archival and aging documentation can be placed elsewhere in your home, labeled appropriately. I like to recommend a plastic file box that can be stacked and hold a few years of tax returns. Be sure to label it "Tax Returns" and the years placed in the box. If you ever have to go back you will know exactly where to go.
  3. Enquirer with your lawyer or accountant of what needs to be saved for a retention policy to follow.
  4. Create a system to go forward. For now your just trying to get it done and survive the ordeal of tax time. This is where a professional can assist you tremendously.
  5. Going forward- Invest in a simple accounting program or book keeper to manage your receipts on a monthly basis.