Terrified of Your Taxes; Take it One Receipt at a Time

And so 2012 is close to the end. We are getting ready for holiday season and trying not to think about what comes next--TAX TIME.

In a perfect world, we are all caught up on our paperwork and file our taxes at the end of every year. Sometimes life gets the best of us and it doesn't happen. We end up with boxes, bins, and bags of paper. Then panic takes over.

Each year, I work on quite a few of these projects. I even had one client drop off bins of paper in my front entry way.

Here are some tips on how to handle tax time:

1. Find a good CPA. Interview a few people and find someone that understands your tax needs.

2. With your CPA's help or tax organizer, identify what you can and can't write off.

3. Have a system in which you organize your receipts for the year. I personally use an accordian file and file according to category. Other people file receipts by month.

4. Choose a computer program to capture your numbers, expenses, ect. The best solution depends on your type of business or personal needs. Quicken or Quickbooks are two popular systems.

5. Spend time each week processing your receipts. Don't let them pile up.

At the end of the year, you should be able to pull the general ledger from your computer system  for all your totals!

 

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