Year End Tax Planning: Organizational Tips That Save Time

Whether or not you hire someone to prepare your income taxes, or you do them yourselves you will need to do some year end tax planning. Good organizational skills with your taxes will not only help protect you from any mistakes, but it also something that is a year round process.

Keep Dedicated Files

Designate an area to keep your receipts, bills, and statements in all year. Create new files for each section and label them by year. As you get new documents, file them immediately so you are not tempted to place them down somewhere and then eventually lose them.

Keep Tax Forms in One Place

As you start to receive your tax documents from employers, banks, and other organizations, keep them in one place for easy access to them. A large envelope, or dedicated file will help you located them quickly and easily. You will be able to tell if you are missing anything quickly and request a copy of it for filing purposes.

Choose Tax Preparer Early

Many people will wait until their taxes are due to find a tax preparer. Do this at the beginning of the year so they will be available for any questions you have during the year. This can help tremendously as you wonder what you should keep and what you do not need to.