4 Tips Your Accounting Service Recommends for Keeping Tax Documents Organized

4 Tips Your Accounting Service Recommends for Keeping Tax Documents Organized

Tax season can be stressful for everyone, but it doesn’t have to be that way. By organizing your tax documents in a hassle-free manner, you can file your taxes easily and reduce your stress levels. Filing your taxes can be quite a daunting task. Here are tips and tricks your accounting service recommends to help you organize your tax documents efficiently.

Tip #1: Keep your documents organized all year round

Organizing your tax documents should not be a once-a-year task. It is a year round practice. Your accounting service recommends that you keep your documents organized all year round. For instance, you can create a folder on your computer where you can store receipts and other documents throughout the year. This way, when tax season comes along, you already have everything you need. You can  ask that receipts be emailed to you instead of receiving paper receipts, which are easily lost or misplaced.These emailed receipts can then be easily placed in your tax folder on your computer. 

Tip #2: Create an organizing system

Creating an organizing system is crucial to keep your tax documents organized. You can start by sorting documents into categories such as income, deductions, expenses, charitable donations, and loans. Physical documents should also be kept in an easy-to-access location, like a file in a desk drawer or filing cabinet. This way, it will be easier to locate the documents you will need when it is time to file your tax return. Make sure that everything is also clearly labeled to help your accounting service distinguish the categories you have created. It is a simple thing that helps ease the stress when tax season rolls around. 

Most accounting services want you to keep your tax documents organized by using online tools to keep digital copies

Tip #3: Use Digital Tools

Gone are the days of keeping all your tax documents in a file folder. Nowadays, you can use digital tools to keep your documents organized. You can use software such as QuickBooks, TurboTax, and other software to keep track of your expenses, deductions, and receipts. These tools make it easy to store your documents and access them quickly when you need them. They are also easily and quickly shared with your accounting service, thereby making their job much easier.  Keeping digital records also helps reduce the sheer volume of paperwork you have to store in order to be compliant with IRS regulations.

Tip #4: Keep a Checklist of Your Tax Documents

A checklist is a great way to stay organized. It can help you determine all the information, documents, and records you’ll need to file your taxes. A checklist can help you identify any missing documents that you still need to secure.

Organizing your tax documents doesn’t have to be a headache. By gathering all your documents, creating an organizing system, using digital tools, storing your documents safely, and keeping your documents organized all year round, you can reduce stress during tax season. Finally, when you have organized your tax documents efficiently, make sure to take a deep breath and give yourself a pat on the back. Congratulations, you have made tax season a little bit easier for yourself and for your accounting service!

South Shore Accounting and Tax Services can assist you with all your accounting needs including filing your taxes. With over 30 years of experience in the accounting and tax fields, we help homeowners and business owners alike, we help our clients achieve their financial goals and keep their finances healthy.  We look forward to helping our clients alleviate financial stress! Request a free consultation or call 781-924-3141 to set up an appointment today!