Organizing Tips to Prepare for Taxes!
How do I organize thee? Let me count the ways!
If you need the hard copy approach use File Folders designating different colors for different expenses. This method is great for people who need a hands on, more controlled approach.
If you can use a Pendaflex system, then you can have labeled categorized folders within, especially if you itemize everything:
Labeled Folder Examples:
Red -- Medical: (separate folders within for mileage to doctor visits, pharmacy bills, insurance payments).
Yellow -- Auto (separate folders within for insurance, gas, repair)
Green -- Household expenses, (separate folders for landscaping, snow removal, repairs, new boilers, etc).
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.
Those of you who are computer savvy can make folders with
There are lots of apps for scanning.
Are your papers too messy to even put them into files and sub-files?
Here's how I did it for some clients in desperate need of organization.
Arrange the containers in a row, alphabetizing the categories for faster and easier sorting. The containers can even be paper bags but all must have visible labels.
Put each receipt in its appropriate container.
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. By the end of the exercise you will have all your papers categorized and sorted. Then then you can place them in either the physical file folders, labeled accordingly or scan them into folders, as described above.
Sounds too exhausting a process? That's what I'm here for, I love doing it!
Please Contact me. I can help.