By Katie Clobes
Clobes Custom Bookkeeping

The end of the year is nearing which means tax time approaches…but don’t panic. I’ve read that being disorganized may be the most anxious part of filing your tax return. Here are some tips to help get your documentation organized, so that you or your bookkeeper/accountant have a smooth and worry-free income tax filing season. 
Make sure all business-related expenses are organized and filed by expense type. Some suggestions for files are: advertising and promotion, automobile mileage or expenses, bank statements, credit card statements, dues and subscriptions, education and professional fees, miscellaneous, office supplies and equipment, postage and shipping, printing and reproduction, rent or homeowner expenses, taxes and licenses, telephone, and utilities (based on the percentage of floor space that you use strictly for your business). Look at last year’s tax return for a good idea of what your expense categories should be.
Keep your business income receipts, check stubs, and deposit slips together. Organize invoices and payments received by client/customer. If you have a large number of customers, organize by month or week. Books and records should be kept for 6 years.
If you have employees or charge sales tax, keep copies of all quarterly reports that were filed. Also, keep all bank statements from your business account for the past year. These records provide a good double check to your income and expense receipts.
Put notations on any unusual expenses or receipts to assist your bookkeeper/accountant in classifying and dealing with them.
If you really feel motivated, prepare a summary of the income and expense categories

Overall, DON’T PROCASTINATE. If you start getting organized now, you won’t have to scramble to get everything ready at the last minute. You’ll also be in a better position to know that you have all the documents you need, which can save you time, anxiety, and possibly money when April 15 rolls around!

2003-2012 © Clobes Custom Bookkeeping. All rights reserved. Home  |  Rates & Numbers  | Helpful Links  |  Privacy Policy