Tax season always seems to sneak up on us, but a little preparation throughout the year can make all the difference when it finally arrives. Whether you’re a business owner, self-employed, or working a 9-to-5 job, organizing your finances ahead of time helps reduce stress and may even save you money. Instead of scrambling in the spring, start laying the groundwork now with practical steps that keep you on track. In this blog post, the experts from Mark Dicus & Company share how to get ready for next year’s taxes before they’re even due.
Organize Your Financial Documents Early
Keeping your financial records in order is one of the simplest ways to make tax filing easier. Start by creating a designated folder—either digital or physical—for receipts, pay stubs, bank statements, and any tax-related paperwork. Make a habit of updating this folder monthly so nothing gets lost or forgotten. If you’re self-employed or own a business, this includes invoices, business expenses, and mileage logs. Staying organized throughout the year means less time hunting for missing documents come tax time.
Review Last Year’s Tax Return
Looking back at last year’s return can offer helpful insights. It can remind you of deductions you claimed, credits you qualified for, and any areas where you may have owed more than expected. Use that information to anticipate what to expect this time around. If you had to pay a large amount, consider adjusting your withholdings or making estimated payments to avoid penalties.
Track Deductions and Credits Throughout the Year
Instead of trying to remember deductible expenses at the end of the year, track them in real-time. Common deductions include charitable contributions, medical expenses, mortgage interest, and education costs. If you’re eligible for tax credits, such as those for child care or energy-efficient home improvements, keep all related receipts and paperwork. Knowing what you qualify for in advance can help you make smarter spending choices throughout the year.
Adjust Your Withholdings if Necessary
One of the best ways to avoid surprises in April is by ensuring the correct amount of tax is withheld from your paycheck. Use the IRS Withholding Estimator to evaluate whether your current withholding is appropriate. If too little is being withheld, you could owe money next year. If too much is being withheld, you’re giving the government an interest-free loan. Adjust your W-4 form with your employer to better match your financial goals.
Consult a Tax Professional Before Year-End
Many people wait until tax season to talk to a professional, but scheduling a meeting before the end of the year can help you make proactive decisions. A tax advisor can help you strategize around retirement contributions, business deductions, or major life changes such as marriage or a new child. Their guidance now can help you maximize savings and avoid common mistakes later.
Use Technology to Your Advantage
Tax prep software and apps make it easier than ever to track expenses, categorize income, and store important documents. Look for tools that sync with your bank accounts or scan receipts so you can stay on top of your finances without much effort. Automating parts of your recordkeeping frees up time and ensures nothing slips through the cracks.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
Preparing for taxes isn’t just about paperwork—it’s about creating peace of mind. By staying organized, tracking expenses, and seeking professional guidance, you’ll make filing faster, more accurate, and potentially more profitable. With the right systems in place now, you can confidently approach next year’s taxes without the stress. For more tips and expert advice, reach out to Mark Dicus & Company. Set yourself up for tax filing success with Mark Dicus & Company today.