The idea of facing the accountant after a year of unorganized spending can be enough to send some folks into a cold sweat. The good news is that it is never to late to start getting things in order. Start right now and you should be prepared to meet with the accountant as soon as your W9’s and other forms come in the mail.
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1. Write out all of the items that you can deduct from your taxes – like medical expenses, business expenses, donations and begin sorting through your canceled (or duplicated) checks for records regarding these types of donations.
2. Start making folders – one for each category that you can deduct (with business expenses make a folder for each business category, like advertising, educations and gas).
3. Sort through all the bills from last year. Put them in order from January to December. Highlight any charges that you believe may be tax deductible.
4. Make a list of all the deductions in each folder and put it on the front of the folder.
By making it easier for your tax accountant to work through your funds you will make it easier to get your refund (and maybe even make it possible to get a larger refund). Start organizing now and you will be ready right after January 31.