Don't hate! I am done with my taxes. Yup.The organizer came in the mail and I turned on the quick books and whipped it out. All I am waiting for are some tax forms that come in the mail. Otherwise- I am good to go.
Doing my taxes used to be easy peasy. Then I started a business. The first thing I did was to find a good accountant, get quick books, and educate myself on what I could write off each year. Ten years later, I think I have it down. I have learned that I can't write off the multitude of black t-shirts that I buy for work(only if they had my company logo on them). And same goes for my tennis shoes.
That being said, the most important thing is to set up a system for capturing your tax papers during the year. For those of you non-business owners, its pretty darn easy. I would recommend keeping a file in your filing cabinet labeled current taxes. When you make a donation simply drop it in the file.
If you write off medical expenses, I would have a file for that as well. After you pay your medical bill, drop a copy in file. At the end of the year, all you should have to do is total everything.
No, I didn't forget you paperless scanning society members. You can also scan your incoming tax papers and keep them in a computer file.
As a business owner, I have to save everything. Its ironic for a chick that spends her time helping people get rid of their paper. I have developed a system that works for my small business. I have an accordion file that is divided into categories that I write off each year. When a bill or receipt comes in, I simply enter it in quickbooks and file it. I do this on a daily basis. I get my normal bills online and save them in folders. At the end of the year, I simply pull up the tax report from quick books and enter the numbers in my organizer.
So throw away that shoe box or bin of receipts you are keeping!!
1. Find out what you can write off for your status.
2. Develop a system to keep these receipts. Whether is a simple file, accordion file, or a scanning system.
3. If you have a lot of receipts, for personal or professional, a software system such as quickbooks or quicken is a must!
4. Find an accountant who understands your needs.
Think of all the time you will be saving! No one wants to spend hours organizing their taxes!!
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