Business Accounting

“In this world nothing is certain but death and taxes.” ~Benjamin Franklin

Tax time is stressful enough without the added anxiety that comes with having disorganized paperwork. Are you one of those people who tell themselves, “I'm serious. I'm really going to get organized about my taxes this year,” only to scramble and rush through the job three days before the deadline year after year? Do you have to dig for your shoebox of receipts or file another embarrassing extension? Believe me, you are not alone! Many, many people struggle with paper management issues, especially financial ones.

When it comes to tax-related paperwork, a large part of the problem is that we wait until a certain time (usually February or March) to actually start thinking about it. This delayed action backs us into a corner with a fast-approaching deadline. What could have been an ongoing habit throughout the year now becomes an archeological dig!

Rather than thinking of “tax time” in the literal sense, adapt your definition and consider it as an ongoing process that happens all year long. Set up a workable system for your financial paperwork – even one as simple as designating an accordion file for collecting all tax-related papers. Establishing a system that works for you will require an initial investment of time and consideration but it will pay great dividends when you are ready to file instead of scrambling. Your system will be larger and more complex if you own a business and more straightforward if you file individually. Think about your needs and lifestyle as well as your basic habits to determine a feasible solution. Once that preliminary work has been done, it's all about maintenance and using your system.

Organizing your annual financial paperwork on a regular basis will keep you sane all year long. And no longer will you fear when the “tax man cometh.”