A Valentine’s KISS = Keep It Super Simple

This month, enjoy time with your valentine…but why not also spend a little time getting organized for tax day on April 15th?

Preparing for taxes doesn’t have to be complicated, and often the simplest systems are the easiest to maintain. So this month, don’t forget another kind of KISS = Keep It Super Simple. Here are some KISS tips to help you organized before tax day:

• Gather all the tax documents arriving in your mail, like W-2s, bank and mortgage interest statements, into one folder. Keep the folder near where you open the mail and as soon as you get these important tax documents, drop them in.

• Collect all your receipts that may be used for deductions. I keep my personal deductions in a section of an accordion folder with my bills. I keep business deductions in a separate envelope in my office file cabinet. I have one client who uses clear plastic bags to organize her receipts, both personal and business. Throughout the year she finds a receipt, and puts it in the bag. It’s super simple, and it works!

• If you have to do the same preparation process for taxes each year, make a list of the steps. After several years of preparing my business taxes for my accountant, last year I finally made a checklist of what documents I needed to gather, what calculations I needed for my home office deductions, etc.  I know that using my checklist will save me time this year.