This year, I promised myself that I was going to not be behind in my own record keeping. I’ve managed to do an okay job but what I found was that if I took care of the small little things everyday, there wouldn’t be a stack of receipts that I would have to deal with later. For the most part it worked but then there were those days when life just gets busy and then it’s time to play catch up. I decided to share some of the tips that have worked for me. More importantly for me, I want to help you find a way that will help you keep your records organized, easy to manage, and take the overwhelm and stress away when it comes to filing your taxes in 2024. Everyone that I know, hates to file their taxes, afterall, who wants to give their hard earned money to the government. I want you to stay compliant but not throw your hard earned money away.
Financial Documentation! This one thing will not only help you get a head start on putting together your tax information but it will allow you figure out if you need to do any last minute tax planning. When I need to organize something quickly, first sort your receipts between business vs. personal. Then sort the items between deductible and non-deductible. Organizing financial documents is crucial because the differnce of $1 could make the difference in a higher tax bracket. Gather receipts, invoices, and any other financial records. This will make tax season much more manageable and ensure that you have a clear picture of your financial situation early on in the beginning of the year. Waiting until September 15 only delays your ability to save more ont your taxes.
Don’t forget Professional Development and Learning: Collect information related to any courses, workshops, or certifications you’ve completed throughout the year – only those expenses that are related to your current line of work. Any new courses in professional development would be considered personal.
Digital Cleanup: Declutter your digital space by organizing files and folders and remove your last years documents to make way for the new year. Delete unnecessary files, update software, and ensure that your digital workspace is efficient and well-organized.
Mileage: Make sure that you have documented your mileage. Where you went, who you met with, date and the number of miles. One of my favorite apps is MileIQ which runs on your phone and you can easily swipe to the right for business and to the left for personal. You can sign up for free here. https://mileiq.com/
Conclusion: As the year comes to a close, taking the time to gather and organize your information will set the foundation for a successful and organized new year. Having a clear overview of your information will help you start fresh and make informed decisions in the upcoming year. Get started on your year-end countdown today!