Having a system to keep all your receipts organized is essential for saving you time when it’s time to file. It is important to create a system that suits your style and space available. Some people prefer binders to files, for example, and that may be an option for you. Here are 4 tax organization tools that you could add to your tax prep and make your tax filing go smoother.
1. Mile IQ – Tracking your miles by hand is time-consuming and hard to remember when you start your drive. What I love most about Mile IQ is that it automatically starts tracking your drive when your car is in motion. You get an alert reminding you to classify your drive and you can write notes about that drive (even who you had that lunch meeting with). You get a report monthly and it’s very simple to generate a report for taxes. There is a free trial version and if you are ready to upgrade, here’s a link for a discount. Click here
2. Small File accordion – $6.99 – Keep this small accordion file in your purse for your store receipts. Prevents receipts from swimming around in your purse or getting lost. This small file accordion doubles as a coupon holder. When you need to do a return you’ll know just where to find it.
3. Large accordion to keep all your expenses together for each year – $9.99 – Keep all tax-deductible business expenses, medical receipts, and supporting documents in a large expandable accordion by category (eg. auto, office exp, advertising, admin, etc) – It makes the end of the year totaling easier. Your accountant will thank you as well when you hand him everything in one accordion file, rather than a box of receipts to make sense of. Keep your tax return along with all the supporting documents in this accordion once your taxes have been filed.
4. Sorting System- $10.26 each – Paper is constantly flowing through our home. Setting up a labeled 3 station sorting systems helps keep your piles to a minimum, and a process for the paper that needs to leave your home.
This system consists of (1)Trash can (1) recycle can and (1) shredder. Sort your paper directly as it comes into your home. The more orderly your desk is the easier it will be to put your taxes in order.
5. Binders – $7.37 each – Binders are great for keeping paperwork at your fingertips and organized by sequence. If you own your own business, create a binder of your financial records so that you can always see your business’s growth in the last 3-5 years.