Tax Season 2019: Organizing Your 2018 Tax Documentation
January 1 is passed, so it's time to get ready for taxes. The tax season, for many people, means a lot of stress and time spent trying to dig up paperwork. Fortunately, getting your 2018 tax documentation in order now makes the actual paperwork process much easier, even though nothing has changed with the latest tax law updates. Here's a quick look at various options for organizing your tax season paperwork in a way that helps you stay on top of the process and decrease your stress.
Centralize your paperwork: To start, you'll want to keep your tax season paperwork in a single location if possible. If you're planning on keeping physical copies, it's best to put these in a fire safe or similar location to protect them against damage. This means that you'll be able to find all your information in a single location rather than tracking it across a range of locations or formats.
Separate by category: Once your paperwork is all collected together, it's important that you sort it out by the type of category it falls into. Keep your various income sources in one category, business expenses in another, asset depreciation tables in a third and financial statements and documentation in a fourth if possible, because that allows you to quickly find documents within a particular category without having to sift through everything else involved.
Consider going digital: The advancement of digital scanning and OTR technology allows you to take advantage of computer technology to create a range of different tools for your 2018 tax documentation and preparation options, and the IRS has accepted digital copies of documentation since 1997. Set up a filing system in one of your computers that reflects your physical filing to make originals easy to find.
By staying on top of your 2018 tax documentation for the upcoming business tax season, you can make the process of having your taxes prepared virtually effortless. But what if you're not quite sure what documentation you need to get your taxes done with the recent changes in the tax code? At AccountRely, our experienced professionals can help you determine what you need to bring for your business tax preparation session. Please feel free to reach out today to get the process started.