Tax time is just around the corner. If you haven’t already done so, here are some tips to help you get started – and to get you better organized for next year! And, of course, always work with a Tax Advisor or Accountant:
1) Use a Money Management Program: Organize, track and manage all expenses with finance tools like Quicken, Quikbooks or Mint.com. Automatically integrate these platforms by adding personal bank accounts to categorize spending habits, so you can track details year round.
2) Reference last year’s tax returns: Reference last year’s returns to make sure that you don’t miss any deductions. You can also ask your Tax Advisor for a list of items you’ve deducted in the past.
3) Check your figures and any changes: It’s key to remain as accurate as possible for deductions and tallied expenses to ensure you don’t have any erroneous data entries, and in order to protect yourself from being audited. Also, make sure that comply with current deduction requirements, formulas and amounts. Your Tax Advisor can help you determine how much and what you can/cannot deduct.
4) Track/Manage your deductions year-round: Over the course of the year, track your expenses and keep your receipts organized. Try to set aside some time each month to catch up.
5) Savings Accounts that also help you save on taxes: Work with your Tax Advisor to determine which retirement account makes the most sense for you.