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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.
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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.
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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.
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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.
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Put notations on any unusual expenses or receipts to assist your
bookkeeper/accountant in classifying and dealing with them.
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If you really feel motivated, prepare a summary of the income and
expense categories
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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!
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