There’s nothing like the thought of spending a whole day battling with your taxes to make even the most stalwart entrepreneur cringe. Here are some pointers to help you make it through that session with your sanity intact:
1. Keep all your financial data in one place. It’s a cliché but it works: dump everything you need in one place. That will make it easy for you to organize the lot later on.
2. Organize your data from the get-go, the Entrepreneur suggests. If you can’t bear the thought of your financial data ending up in the bottomless pit or the hours you’ll have to spend sorting all those receipts, then try to organize your data into folders. You can still dump them into the folders willy-nilly but at least you’ve got an idea in what category they belong instead of wasting time trying to remember. Besides, organizing your files is easier when the memory is still fresh rather than trying to figure out the when and what a few days, weeks or months later.
3. Keep an accounting of all your expenses. It’s impossible to remember everything. So make it a habit to take a daily tally of your personal and business expenses. This should help you when it’s time to file your tax returns.
4. File early, says Money Crashers. Nothing beats that sense of accomplishment you feel when you know you’re done with your tax returns. Filing early also helps a lot especially if your records are lost and you need to resend your documents right away. If you file them too late, you’ll end up filing them past the deadline. But if you’re an early bird, then you’ll likely make it to the deadline, with a day or two to spare.
5. Book early. The key to filing early is to find a tax pro weeks or a month before the filling season starts. There are plenty of tax preparers you can consult or go to for help so you won’t have to make sense of your finances alone. With the right help, you can easily put your taxes in order, keeping your organization safe from the IRS.
Filing your tax returns doesn’t have to stress you to bits. With these tips and credible professional help, you can turn things around and unmake the mess you made with your tax return records just in time for the deadline.
A Kaplan CPA provides you with the accounting and tax services you and your business needs. If you would like to know more about how we can help you get with your tax situation, call us for a FREE Tax Consultation at (718)577-2582. You can also connect with them on Facebook for more updates.