Tax time doesn’t have to be stress-filled. Are you one of those people who shove receipts and invoices wherever is convenient, then panic when you can’t find them? Do you have to sort through a mountain of paperwork when tax time rolls around? Why don’t you be kind to yourself and promise to do tax time, anytime, from here on in?
Why tax time, anytime?
Accuracy – if you’ve sorted, tallied, and filed your invoices and receipts on a regular basis, you’re less likely to make stress-induced errors when you complete your tax return.
Accessibility – you’ll know just where to look for that needed receipt; no more frantic searching through every drawer and closet in the house when working through your tax write-off list.
Assurance – no more tax time stress; you’ll have it all covered!
Make it easy
The best approach to tax time, anytime, is to have a designated location for tax-related documents. Files are easily stored in a small cabinet or file-holder. You can also store receipts and other tax-related documents in envelopes, and keep them in a desk drawer or box. Label each envelope clearly as to its contents. What’s important is that you sort your paperwork into its respective categories. Common tax categories include: income, expenses (phone, utilities, vehicle), and insurance, just to name a few. For more details check out this tax write-off list.
Add them up!
Keep a running tally of your invoices and receipts, and attach the total with a paperclip. Better yet, keep a running total in a journal or in a spreadsheet. When tax time arrives, it will be a cinch to enter your income and expenses into your tax return.
Keep on top of it all
Paperwork has a sneaky way of piling up. File your receipts on a regular basis. Choose a schedule that will work best for you, and stick to it. It doesn’t have to be every day; the point is to be as organized as you can. Not sure where to start? Try sorting through your receipts one month at a time – try sorting last month’s receipts at the beginning of each month.
It’s that simple
Sort, tally and file on a regular basis. Tax time, anytime is that simple. Start now, and you’ll be pleasantly surprised come tax time.