Organizing Your Tax Documents for Increased Accuracy

Whether you do your taxes on your own, or you hire an accountant in Billings, Montana, having your documents organized is the key to making sure that you don’t make errors. There are a number of different ways that you can organize, but sometimes just keeping a folder and a checklist handy are the easiest ways to do so. The best part about this organization is that it only takes about 30 minutes over the course of a year, but it can save you hours when it comes time to do your taxes. Here’s how to stay organized.

Make a Tax Folder

Each year you should start a tax folder. A simple manila folder will work, and on the tab write “Taxes 2015” or whatever year you are making for your folder. Sounds easy, but you’re not quite done yet.

On the inside cover of that folder is where you will want to write down all of the tax documents that you receive every year. It doesn’t have to be detailed, just something that can keep you on track so that you remember all of your documents.

You will want to make sure to include your W2’s, charitable giving, and all of the other common documents that you remember each year. But make sure to include other documents such as auto registration, student loans, property taxes, thrift store donations, and other items as well.

Stock Your Folder

Now comes the hardest part. Make sure that you keep your income tax folder somewhere that you can access it easily. Then every time something comes along that would apply to your taxes, such as registering your vehicle, one-time donations to charities, property tax statements, and the like, you stuff it in the envelope. Don’t worry about organization at this point.

The hardest part about making sure your folder has the important documents is that you will often feel a bit lazy. Instead of taking the 60 seconds to pull out the folder, receipts and statements end up getting stuck on the desk, on the kitchen table, and lost. You likely won’t get more than one of these statements each month, so take the time to put them in the right place.

In January and February, however, that’s a different story. Pull the folder out and keep it accessible and visible. Every week or so you will get a tax document in the mail. Just place it inside the folder.

Doing Your Taxes

Before you make your appointment with your accountant in Billings, Montana, go through your folder. Look at all of your tax documents and cross them off the list on the inside cover. When all of the items are crossed off, then you know that you’re ready to have your taxes completed.

The best part about this process is that it is easily repeated next year. Grab a new folder, write “Taxes” and the current year at the top, and then transfer over your list from the inside cover. If you started a new job or anything like that make sure to include that on your list.

Hire Practical Taxes to do Your Tax Return

If you need your taxes done, but you don’t have the time to do them yourself, Practical Taxes is ready to help you out. We are accountants in Billings, Montana. He knows taxes, and can get your taxes prepared for far less than you realize. Call 406-894-2050 to schedule your appointment today!

Practical Taxes is a full service accounting firm in Billings, Montana. We offer payroll services, online payroll services, tax preparation, and more.