Make tax season pain-free with these tips you can put into action immediately!
We talked to Tonya Willey, Accountant and Account Manager at DTC Bookkeeping about clients who come to her unprepared. “Tax time is not the time to do cleanup. Tax preparers are already overworked, and this is not where they want to put their focus at tax time,” she says.
If you’ve got an incomplete shoe box full of random receipts taunting you, making that appointment with your tax preparer might be an anxiety-inducing thought.
We’ve put together four tips to help calm your uneasiness and put you in a good position for tax time.
1. Create a storage system that works for you
Stashing receipts all over the house, telling yourself that you’ll remember to file them later, is how you end up with lost receipts. This could come back to haunt you at tax time when a lost receipt means you can’t claim an expense.
Not only this, but Willey also cautions “preparers are liable for the reporting, and I want to be accurate in what you report. If you’re coming to me and your documents are not put together, that puts me at a greater liability. I’m going to tell you you’re not a good fit for my firm.”
We say this a lot to our clients: You need a system that is going to work for you. Tina Curtis, Professional Organizer, can help you create an effective and efficient system for recordkeeping and document storage. By analyzing your current organizational system (or, let’s be honest, lack thereof), she can make recommendations to simplify and streamline your document storage.
Thankfully, there are ways to make your life easier and more organized, which is why we recommend you:
2. Put technology to work for you!
There are many apps out there that will help you manage your receipts in a snap- literally. Apps like Mint by Intuit not only help you manage your money more effectively, they make it easy for you to track or capture expenses and flag tax-deductible expenses, all from your phone.
3. Log those miles
The new mileage rate for self-employed is $0.625 per mile through the end of the year. Check with your accountant for whether your car usage qualifies for standard mileage deductions. If you do qualify, even short trips can add up to big deductions come tax time.
Keeping a timely log of mileage – for both business and personal use – can make this deduction easier to claim. Make this task a breeze with a mileage tracker app. If you use a platform like Quickbooks, you can easily track and categorize all of your miles using the GPS on your phone.
4. Start Today To Save Time and Money
“I can tell you it will cost customers at least twice as much if they’re disorganized at their first meeting with a tax preparer. Most preparers will send customers away if they don’t have their documentation in order. This means the cost of the initial office visit plus having to come back for another appointment- or two or three,” says Willey, when asked about customers who show up to their appointments unprepared.
The cost of the office visit(s) coupled with potential missed deductions due to poor record-keeping can add up quickly. It’s to your benefit to set aside time to start organizing your records. Reduce your anxiety, save time, and save money. Sounds like a winning plan to us. If this process feels unmanageable or overwhelming, give Tina a call or send her an email. She offers complimentary, no-obligation consultations and can get you on the path to a bright, organized future!
