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Organizing Now For Next Year’s Taxes

April 17th, 2009 by ryan

Now that tax season has officially ended, it’s time to think about next year.  Tax season can be very frustrating. There are lots of documents to sort through, receipts to find, and forms to fill out. You can make next season a lot easier by setting up an organization system now.

Using a system like Invotrak can make this process easier. When you use this system, you will be able to keep track of your invoices and earnings. Each month, you can print them all out and add them up to keep track of your total monthly income.

You will also want to keep track of your expenses. Remember to include all business expenses, including business supplies, lunches or dinners with clients,  expenses associated with attending workshops, seminars, and conferences, as well as a portion of your rent or mortgage and utility bills (if you work from home).

It is always a good idea to check with a tax professional before you deduct anything. Laws can change from year to year and it is always better to make sure you are following the tax code.

You can purchase some large manila folders and put all of your monthly invoices into a folder. Smaller manila folders can be used to store receipts and then placed in the larger folder. This will keep proof of income and expenses together, in one place. Each month of the year can have its own folder; take it one step further by writing down the total for income and expenses on the back of each separate folder. The group of folders can then be placed in your filing system.

When it comes time for tax season next year, you just need to get out your group of folders for the year and use them to complete your taxes. Of course, keeping a running expense on a spreadsheet can also be helpful. If you choose to get your taxes done by a professional, you can simply print out the spreadsheet and give that to them, along with your income total. This will help them make quick work of your taxes.

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This entry was posted on Friday, April 17th, 2009 at 7:42 am and is filed under Featured. You can leave a response, or trackback from your own site.

One Response to “Organizing Now For Next Year’s Taxes”

  1. Taxable Income Guy Says:
    November 22nd, 2009 at 10:57 am

    I’ve been involved in taxes for longer then I care to admit, both on the personal side (all my working life!!) and from a legal standpoint since passing the bar and pursuing tax law. I’ve provided a lot of advice and righted a lot of wrongs, and I must say that what you’ve posted makes perfect sense. Please keep up the good work – the more people know the better they’ll be equipped to deal with the tax man, and that’s what it’s all about.

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