A colleague approached me at a meeting, cup of coffee in hand and a pained expression on her face. Something seemed terribly wrong. Did she lose a big client? Was she ill? Was her coffee decaffeinated? No. It was tax time and she was feeling the effects of a year’s worth of avoidance.
Her plea for help could not go ignored.
Here is your 3 step plan to getting organized for tax time.
Step 1 :: Collect
Create tax folders, both paper and digital, to hold receipts, documents and statements.
The organizing structure will look like this:
1. Revenue Agency Documents
2. Pay Stubs
3. Investment Statements
4. Expense Receipts
5. Credit Card Statements
6. Bank Statements
Step 2: Sort
As you receive receipts, statements and other tax-related documents, put them into the corresponding folder … as they come in. This is key to making your tax filing experience pain-free.
Step 3: Scan
Scan the paper receipts in batches so you get it done in one go. Keep the original paper receipts and file the digital version in the applicable folder. Share the digital folder with your bookkeeper and accountant. Google Drive, Dropbox, OneDrive etc. make this super easy.
Your Next Step
Create those folders now. It’s never too late to start your new and improved tax filing system!