We have our 2011 tax meeting this week with our accountant. We own an S corporation and have a few employees, so we have a CPA prepare our taxes every year. Honestly, he is worth his weight in gold; the tax rules make my head spin. I'm in close contact with their office through out the year, so there are never any surprises at tax time.
In all honesty, tax season goes fairly smoothly for us. I keep our paper work organized and QuickBooksupdated through out the year, so that when January rolls around, I only need to pull together the year end statements as they arrive in the mail.
Three simple office supplies keep our paperwork organized...and really it isn't rocket science. My desk might look like a mess (occasionally), but I do keep important financial paperwork organized.
3 Simple Office Supplies
1.A 4.5 inch binder
For our small business, I file large receipts, bills, and statements in a large 4.5 inch binder. I use tabs to separate our expense categories. Everything is filed immediately after I enter the transaction into our QuickBooks software, so I don't get behind.
Our accountant doesn't need to see this binder, but it contains all of the receipts that back up our business deductions, so I'll store it away in a closet with other past years. The size that you need would depend on the amount of receipts and statements that you receive through out the year. This size seems to hold everything for me for the year and my husband grabs them when they are on sale through out the year at office supply stores.
2. 13 pocket, Expandable Receipt File
Our smaller sized receipts get filed in a 13 pocket, expandable file. I file them by month and all receipts get filed as soon as the transaction is entered into QuickBooks. Again, my accountant does not need to see these receipts when preparing our taxes, but they do support our tax deductions, so I store them with the binders.
3. File Folder
I told you...not rocket science...
For our personal tax returns, I keep an ongoing "Taxes" file for any paper work that we need to support our tax deductions, such charity receipts, Goodwill donations receipts, real estate and school tax statements, year-end statements for mortgage interest, student loan interest, interest-bearing checking and savings accounts. As I receive the paper work through out the year, it is filed, so that at tax time everything is in one place. I do pass this folder along to my accountant for his review. All of that paperwork is then filed with our tax returns.
Do you have questions on how long to keep your financial paperwork? Read How Long Should I Keep My Financial Documents.
Are you prepared for tax season? How do you keep your financial paperwork organized for your taxes?
This post is linked to Frugal Friday at Life as MOM.
Thanks for reading. If you would like to receive FREE updates of FBS, there are four ways to do so:
- have updates sent to your email,
- through your RSS Feed
- become a fan and 'like' FBS on Facebook
- become a Twitter follower
Disclosure - This post contains affiliate links that help support this site at no additional cost to you. Thank you for supporting Family Balance Sheet! You can read the site's full disclosure here.
This is a personal blog about my thoughts, experiences and ideas on personal finance and home mangagement. The contents of this site are for informational purposes only. I am not a financial professional, just a wife and mom who happens to enjoy topics on personal finance and home management. Please consult a professional if you feel you are in need of professional advice.