Every small business owner has their own unique business situation. What works for one small business owner to organize tax documents year-round may not work for another. However, with that said, the team here at Tax Alternatives wants to provide a simple starting point that you can modify to meet with your specific business needs when it comes to being organized.
Organizing Your Tax Files and Documents
It may be as simple as taking a large file folder and marking its tab with the tax year you are preparing for. Throughout the year take any receipts or files you have that are tax deductible and put them all into the folder. Some such files would be tax forms, charitable donations, business receipts, and 401K contribution forms to name a few.
It is important to separate business from personal receipts and records which you can easily do by keeping separate envelopes within your hard folder. In addition, to your hard folder and envelopes, it is best to track all your business expenses and incomes on some type of a software program whether QuickBooks or you do it yourself by way of a spreadsheet. You are sure to find it helpful to keep a digital file of all your documents by scanning all your receipts and files and keeping them on your computer as well.
Often times, business owners find it much easier to keep hard copies of all their files so that when it comes time to deliver all your documents to our team here at Tax Alternatives, the task is a whole lot easier. However, in today’s technology world, it is very common for small business owners to keep digital files of all their tax forms and documents that they are then able to share with our team of specialists when tax season comes around. Whether hard copies or digital files, or a combination of both, taking steps to organize tax documents throughout the year makes the whole tax filing process easier not only for you but for your tax preparer or specialist too.
Don’t Forget the Checklist
Another important component to your organizational protocol is to create a spreadsheet checklist perhaps in Excel that you are able to use year after year. Your spreadsheet should include tabs for personal and business receipts and documents such as mileage, charitable donations, health care, mortgage interest, miscellaneous tax forms and dividends for starters. Whenever you add a receipt or item to your tax folder or scan one to your digital file, check off the appropriate box on your checklist and make any notations as needed. Be sure to update your spreadsheet year to year as needed, especially with regard to tax forms required. As we all know the tax regulations, codes and forms tend to change from year to year. A checklist helps to ensure that you have all the files and documents you need to provide to your tax specialists who will be preparing and filing your tax files.
Here at Tax Alternatives, we fully understand how frustrating and challenging tax season and tax filings can be. That’s where our team of highly skilled and experienced tax specialists comes in. Our team is steadfast in their commitment to meet the individual needs of all our small business owners and individual taxpayers as well. For that reason, we wanted to share these simple steps you can take to organize tax documents all year long in preparation for your next tax filing season. For more information on how you can better organize your business tax information or to schedule a free consultation, be sure to reach out to one of our friendly team members. We look forward to serving you and want to help you avoid any confusion, frustration or stress when it comes time to file your small business taxes each year. Give a give a shout out to our team today with any questions or concerns you may have.