Sure it is summer time, but so many people wait until January or February to start getting things ready for tax season which leads to confusion, frustration, and the missing of tons of information and data.
Preparing yourself for tax season should be a year round effort to really optimize your reporting and refund potential. Here are 7 simple things you can do to help prepare for the next tax season:
- Assess the previous tax season: How did it go for you? What would you like to see different? Are there any areas of improvement you could be working on to make tax season easier and better for you?
- Meet with your CPA or tax advisor: Your CPA and tax advisor are your main line of defense and direct line to information on any changes in your tax situation.
- What are your estimated taxes for the year?: Look at your liabilities and expectations for profit. This should be checked several times throughout the year to see if you are on track or need to make any adjustments.
- Come up with a plan: See what you can do to take advantage of tax credits and all deductions. Work this plan out with your CPA or tax advisor.
- Organize: Based on all the information provided, figure out a way to best organize all the information, receipt, and financial data for record keeping.
- Use the tools best for you: There are tons of account and financial tools available to you to help you stay on top of your data entry.
- Keep your records up to date: It is common for people to fall behind on putting in financial data and receipts, but designate some time, at least every month, to get the information recorded.