4 Tax Preparation Tips for Keeping Important Documents
When it comes to filing income tax returns, maintaining important documents can make the process much simpler. Keeping a file of relevant records for at least three years helps with consistency and accuracy. Here are several tax preparation tips designed to effectively sort and organize essential documents.
4 Ways to Maintain Tax Records
1. Create Digital Files
Over time, paper documents can take up large amounts of space. One alternative is scanning bills, statements, and tax returns as PDF files. The process is relatively easy, and you'll have easy access to the records right on your computer. There are also several software programs that help users sort personal and business expenses.
2. Maintain Receipts
Keeping important receipts is another way to make the tax preparation process less stressful. From child care and college tuition expenses to charity donations and tolls, create a notebook or other filing system to store the documents. Create tabs for different categories such as banking, medical, and homeowner receipts. As a backup, consider making copies of the receipts and storing them in another notebook.3. Use Smartphone Applications
Certain smartphone applications can make managing digital files easier. Many allow users to upload transactions from bank and credit union accounts. You can keep track of paid bills that could aid in preparing your state and federal income tax returns. Some apps also have additional features such as including tags or notes to sort expenses into different categories.
4. Stick to Old-School Methods
For the traditionalists, file cabinets or storage bins are still fine ways to maintain important records. The key is to sort documents based on tax-related information, such as past tax returns and receipts, and other items that don't fall into that category. Organize the storage containers by type of document and date. To prevent fading, make copies and store the originals in plastic document providers.
Tudor Wilson & Associates CPAs in Honolulu, HI, specializes in providing professional tax preparation services to individuals and businesses. The team of certified accountants has extensive knowledge of the latest tax laws and is always committed to getting their clients the most credits and deductions. To learn more about how the firm can help you, call (808) 592-2000 today. Visit the website for information on the full suite of services.
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Tudor Wilson & Associates CPAs, LLC
1150 S King St, Ste 203, Honolulu, HI 96814
CALL US+1 (808) 592-2000
CALL US+1 (808) 592-2000
