Tax season creeps up on all of us. With it comes all the stress and anxiety that tax day brings. However, by simply taking the time to adjust your daily routine you can prepare yourself for the tax deadline in advance. To help you get—and stay—prepared for tax season, please enjoy this list of 10 ways to prepare for the upcoming tax season.
1. Filing System
Having a well-organized and thorough filing system makes all the difference. Using an accounting program like Quicken will help out a lot, but as long as you can keep a small filing box or cabinet for important documents you can avoid having to search for them in April.
2. Throw or Keep?
As opposed to saving every single bank statement and receipt, go through them and only keep those that are really prudent. The less you have to sort through come tax season the better, so only keep essential and tax-related documents.
3. Write Down Everything
Whenever you make a tax-deductible purchase or any other tax-related move, write it down. This way you will have a quick and easy reference when you need it, saving you time and making sure you don't miss a thing when tax season arrives.
4. Figure Your Income
Be prepared to know this number by heart during tax season. If you have had multiple jobs throughout the year, make sure to keep accurate records of your earning from each. The easiest way to do this is to make sure and keep all of your pay stubs.
5. Balanced Checkbook
Balancing your checkbook does more then just keep you checking account accurate, it also builds good financial habits. Teaching yourself to record your spending daily will help you stay sharp in your other finances. Some people find it easiest to carry a pocket notebook to record spending.
6. Reduce Accounts
Consolidate your bank accounts and credit cards as much as possible. If you have a separate business card, savings account, or two, that is fine. However, having three personal checking accounts is more likely to confuse you when it's time to track your financial history.
7. Keep Records Together
Any and every tax-related document should be kept in the same place, or at least in close proximity. This will assure nothing gets lost or misplaced, giving you peace of mind when anticipating the upcoming tax season.
8. Bill Agenda
Put payday and all of your bills on your wall calendar or day planner. This way you can have a plan for your monthly finances. Paying bills on time will keep your budget on schedule and money in order.
9. Sort Receipts
If you save every single receipt you get, you are going to have A LOT to go through when the time comes. Instead, only save tax-deductible purchase receipts. By adding up your receipts monthly or bi-monthly, you can also save time and stress later on.
10. Seek Help
When tax season is approaching, check out tax professionals in advance. Once the season gets rolling, it will be more difficult to get all of your questions answered thoroughly. An early start will ease tax stress and keep you ahead of the game!