Whether you are gathering receipts and records for your personal or business taxes, you are going to want to keep them organized to help save you time when tax season rolls around. When it comes to keeping your record straight and your receipts organized, the IRS doesn’t tell you what system you have to use to do it. They simply ask that your records are easy to comprehend, accurate and contain all the necessary details. Mark Dicus & Company is here to talk about some of the ways that you can organize these important documents so that tax season doesn’t feel so stressful.
What Categories are Needed?
When you are talking about a small piece of paper like a receipt, it can be easy to understand how that might get misplaced. This isn’t something that you want to be dealing with when you are getting your taxes put together. One of the most simply ways to do this is with the use of file folders. You may want to organize them in categories. Some common categories would include:
– Medical expenses
– Banking information
– Child care receipts
– Charitable donations
– Home and property
– Income (W-2 or 1099)
Scanning or Photographing Receipts Can Be Helpful
If you aren’t interested in the old fashioned way of organizing your receipts and important documents, you can also turn to the digital method of scanning or photographing your receipts and important documents. With smart phones in virtually every single person’s pocket, this can be an effective and simply way to do things. You can also purchase a receipt scanner and upload them onto your computer if that is easier for you. You will still want to keep your digital records organized, so we recommend that you create digital folders for them to go in so that you aren’t confused when tax season arrives.
Write a Note Directly on the Receipt
You may find that you need more information than just the receipt for your 1099. When you are reporting job related expenses, you will need to know the amount, location, date and the type of expense you are dealing with. When you have jotted down this information, it is important to put that receipt where it goes whether you are doing it digitally or not.
Bank Statements are Not Good Enough for Taxes
It is important to remember that simply having bank statements isn’t going to be enough documentation for the IRS. You will need to have the right documents to successfully complete your taxes. This will include receipts, canceled checks, and copies of your bills to justify your expenses.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you’re getting your documents ready for taxes this year and have questions about the process, you can turn to Mark Dicus & Company to help you get the information you need. We will help you with any bookkeeping that you may need to help make the process a smooth one. Call us today!