Feeling Toxic Over Taxes?
How do I organize thee? Let me count the ways!
1. File Folders designated for different labels for each category of deductions or different colored labels. This method is great for people who need a hands on, more controlled approach.
2. On your computer or tablet but in files. You need to scan your items and sort them just as you would with a hard copy. There are lots of apps for scanning.
What if you don't keep your papers in order all year long?
Now you have loose receipts, etc,. to put in order.
This photo is a great example: Sort, sort, sort...
Here's how I did it for some clients in desperate need of organization.
1. Make a list of the different categories of receipts you have.
2. Put each type on an index card and color code it with a crayon.
3. Staple or tape each index card onto a file box, basket, paper bag, shoe box or any container.
4. Arrange the containers in a row, alphabetizing the categories for faster and easier sorting.
5. Put each receipt in its appropriate container.
6. Once you have no more receipts, you do the same thing within each category. Yes, start over with new index cards and color code for new categories. (Example, receipts for pharmacy, medical expenses, travel expenses, etc). Yes, you need a few more containers.
7. By the end of the exercise you will have all your papers categorized and then you can either scan them into folders or put them in factual file folders labeled, of course.
Now you are ready to start your tax work or hand your accountant organized papers!
Sounds too exhausting a process? That's what I'm here for, I love doing it!