If you’ve ever stayed up late at night during tax season rifling through mounds of paper searching out deductions, you might be desperate for a simpler way. By organizing your potential tax deductions throughout the year, filing your taxes next year will be a snap. Here are a few tips that you can do to make your experience not only less tedious, but can also protect you in case of an audit.
First, save your receipts! Yes, having mounds of paper is obnoxious, but those mounds of paper needn’t take up a lot of room. A simple accordion folder can organize a year’s worth of expenses without taking much space. You can also organize your receipts and information using a simple Excel sheet for at-a-glance accounting.
Next, divide and conquer! Make sure you have medical expenses, moving expenses, charitable contributions, and home business deductions bundled in their own sections to ensure easy calculating. Again, if you prefer, an Excel sheet that lists the name, date, and amount of purchase can make for easy accounting.
Finally, make use of technology. There are many different programs, apps, and other technological advances that can scan and keep track of your receipts for you, making the process of organizing things much easier.
While taxes can be tricky to navigate, having the necessary information readily available can make you or your accountant more prepared this tax season. For help filing taxes for your personal or business use, give us a call here at Gecinger Tax & Accounting today.