Organize For Tax Time

It's possible you know someone who highly dreads this time of year.  Tax time.  Even though, like Christmas, it happens at the same time every year, some of us are usually still caught off guard.  What--I have to gather my receipts, update my mileage log, balance months of bank statements...already? Again?  Crap.  (Kinda like I am around the holidays--already? Again? Crap.)

Anyway, if your filing system for tax documents consists of a pile of papers stacked somewhere in your office, here are a few tips to make this year's tax time a little less painful.  Hopefully next year's, too.

• Systematically go through the papers and receipts and sort into relevant piles.  Different categories will emerge, so put like with like.
• Create a folder for each category: Income, Expenses, Receipts, Records (or use words that make sense to you so you'll know what goes in the folders and you'll use them)
• I suggest paper clipping together each month's papers inside of each folder--this way, if you need to find info for a certain month, you can do so quickly without having to rifle through the folder
• If you have an accountant that you'll be giving your info to, go ahead and add up the items in each category.  He/she will double-check your numbers anyway, but this can be a time saver for them.
• Throughout the year, use these folders!!  Don't make your life harder by procrastinating on this one. 

 You'll thank yourself next year at tax time, and you'll wonder why you waited so long to organize your tax documents!