Your appointment with your tax preparation services is the next day, and you don't have any idea where your files are. You find yourself scrambling around to secure your records as you prepare for the meeting. You look on your computer, in drawers, and in countless files. You finally find some of your records and hope you have enough to get the job done. Sound familiar? If you’re sick of all of the scrambling, make things easier on yourself by organizing your tax records.
Which Tax Records to Save
1. Invoices When invoices are paid, some businesses toss them out. However, your tax professional will want to see them. He or she might be able to find a way some tax savings so it is a good idea to save these. Your invoices are likely digital, so you have them saved on your computer. Print them out, as well, and put them in files organized by month.
2. Paper and Digital Receipts At one time, small business owners just had to throw all of their receipts in envelopes, and that was it. Now, though, they have to contend with digital and physical receipts. While that might seem like a problem, it really isn’t. You just have to get organized.
Start with your paper receipts. Pull out 12 envelopes and label them by month. Then, put the receipts into the appropriate pockets. Next, move onto your emailed receipts. Just create a folder for receipts in your email program. You don't need to make individual folders since digital receipts are so easy to find. However, you do need to back the file up in case something happens, and you accidentally delete them.
3. Bank Statements Don't make your tax professional log into your bank account and track down old statements. If you have digital reports, save them on your computer. Then, print them out and put them in a bank statement file. Since you only get one per month, you can put all of them in the same file.
Accounting Services for Small Business
Organization is key for tax preparation and planning. Tax filing is much easier if you have everything ready to go. Many entrepreneurs and owners rely on accounting services for small business for guidance in setting up business software programs to organize and simplify their record keeping systems.
Charles P Myrick CPA, Washington DC tax preparation firm, specializes in accounting and bookkeeping services for new business start ups and entrepreneurs. If you are a new entrepreneur, give us a call. We invite you to learn more about the accounting services for small business that are available: (202) 789-8898.