With the end of the year upon us, now is the time to make sure you have all your tax documentation together and organized for whoever is going to prepare your taxes. I will share some of my favorite tips and tricks to get you going and keep your organized year after year. We all know that accountants love having tax information long before the dreaded deadline and it also gives them more time to focus on your taxes. So create less stress by having your information together long before the April 15th deadline.
If you haven’t already, create a folder marked 2018 taxes and put all your tax documents there as soon as they come in. You will want to include documents such as 1099s, W2’s, and copies of property tax bills. For a more comprehensive list of documents to include, visit The Balance.
Next, make a list of the charities you donated to throughout the year – the best way to track that is having all your finances on Quicken or QuickBooks. I discuss the differences between the two here.
A Daily Money Manager can come in to help sort out all your tax information. They can come any time during the year and help keep your records up to date throughout the year. If you have a shoebox full of receipts and if you’re planning to give this to your accountant to sort out, you should know his or her hourly rate is higher than a Daily Money Manager.
Asking for help and hiring someone to put all your information together for your accountant will save you time and reduce your stress. Not to mention, they will document everything that has been sent to your accountant, the date it was sent and keep accurate and up to date records for you.
Be on time
You want to be sure to have everything for your accountant prior to the deadline so you don’t have to file an extension. Many people have to file an extension because they drag their feet getting everything together. We all know that gathering tax information is not anyone’s favorite task. Each year we say “I’m not going to do this again!” But by being prepared and being on time, you’ll have that direct deposit into your bank account in no time flat.
If doing all this preparation just isn’t for you, do yourself a favor and hire a Daily Money Manager. Relieve yourself of the stress and frustration or simply give yourself the peace of mind knowing it’s all being taken care of for you. It never hurts to have a second set of eyes on your paperwork, and a Daily Money Manager can even help with other tasks, such as paying bills and balancing your checkbook. People always want unique and useful gift ideas, so ask for help as a Christmas gift. Everyone benefits!