Tips For Staying Organized This Tax Season
Many people dread tax season because they know they are going to have to spend a lot of time looking for documentation that they could have kept better organized throughout the year. The government demands a lot of paperwork from you and it is easy, throughout the year, to tell yourself that you will be able to find what you need come tax time. Not necessarily so. If you are worried about being and staying organized during and after the upcoming tax season, below are some tips that can help you stay organized.
File everything by ID number
If you are only sending in your own taxes, than there is only one ID number that you need to worry about: your own. If, however, you are filing taxes for multiple people, it can get confusing when everyone’s individual paperwork enters the mix. Separate files by social insurance number and keep all pertinent tax information in each file. You can put old boxes of tax information in storage when you don’t need them.
Collect important paperwork
If you are one of those people who start their taxes early, then you don’t have to worry about running around last minute, stressed out, looking for your documentation. It is a good idea to store all of your receipts and end of the year documents in one place throughout the year so that you have easy access come tax time. If you find yourself accumulating a lot of boxes over the years, consider placing the unnecessary paperwork in a climate controlled self storage unit.
It is one thing to collect all of your important tax information, put it in a box and think that you have done something productive. It is another thing to be able to open that box, be able to immediately locate a file folder and pull out the information you need. Make sure you label things by type of expense and date so that you can calculate your taxes as fast, and as accurately as possible.
Invest in a locked safe
Your taxes contain sensitive information about you, your family and your business. Make sure that when you are storing your tax records throughout the year, that they are well protected. This might mean investing in a heavy duty filing cabinet with strong locks on it, or even one that is fireproof. Additionally, storing your tax information and your old tax returns in a self storage space can provide you with the assurance that your sensitive financial documentation is always being looked after.
Tax season is not fun, but it can certainly be made easier by being more organized. Keep the above organizational and storage tips in mind for this upcoming tax season and get tax season over with as quickly as you possibly can, and stored away for the next year.