Tips for Individuals Organizing Their Financial Records During the Tax Planning Process

Many individuals and small business owners consider tax time a stressful event. However, with the help of a qualified accounting and tax professional, you can achieve organized financial records and help minimize that. Organization = optimization!

Below are a few examples of how to take advantage of the expertise of an outsourced accounting firm, so you can experience a seamless and trouble-free tax season.

Evaluate Your Needs

Are you a small business owner? A sole proprietor of an LLC? Do you or a member of your family qualify for disability tax credits? It’s important to answer these questions before sending off your tax returns to the IRS. Each lifestyle requires a different set of priorities that must be taken into consideration when planning a tax portfolio.

Gather Your Materials

Many people use computers to collect, store, and synthesize their tax data. Choose software that works for you and your needs. Consider investing in a photocopier or scanner, so you can create PDF files or hard-copy documents. It is additionally important to consider backing up your information using an external hard drive.

People who prefer using paper will need to visit their local office supply store. Purchase a large binder, dividers, folders, and a three-ring hole puncher to contain all your necessary documents in one place. If you need to itemize, create a manila folder for each category.

Categorize Your Documents

Separate your documents into filed locations that indicate their identity as well as filing status. This lets you and your tax professional find the information needed with ease.

Keep itemized deductions together by category. If you keep paper copy records, include a receipt pocket with which to store tangible evidence of your purchases.

BMH Accounting Offers Tax Organization Help Near Your Area in Boynton Beach, FL

If you’ve never organized your taxes before, enlisting accounting professionals will help make the process more efficient. The dedicated team at BMH Accounting can help you organize your financial documents and receipts, so you can take advantage of every deduction and tax break available. We help individuals and small businesses in Boynton Beach prepare and file their taxes. If you’re interested in our services, please feel free to give us a call and schedule a consultation. We look forward to hearing from you!