How to Stay Ahead on Your Accounting to Avoid Tax Problems Next Tax Season

As we are wrapping up the 2016 tax season, a lot of us are regretting waiting until the last minute to get everything together. Taxes are tricky because you obviously don’t want to misfile and get audited but you also don’t want to miss out on any potential refunds. Usually, if you are accurate with your information and honest, you’ll be ok. Here’s how you can make taxes much easier for next year and the years to come.

 

Balance Bank Accounts Every Month

If you have multiple accounts, credit cards, etc. be sure to go through the statements monthly to be sure everything looks right. Try to pay off your entire credit balance every month in order to avoid paying interest. Also, use this information as a gauge for the upcoming months/years. Once you have a good feel for how much you earn and spend on a regular basis, it’ll make more sense when going through your accounting.

 

Keep Folders with Important Receipts and Invoices All in One Place

Organization is the number one key to making your taxes as easy as possible come tax season. If you don’t save receipts and other important expense paperwork, you’re likely to miss out on some substantial returns when you file. The easiest thing to do in order to avoid this is to dedicate an entire drawer in your office to these specific documents. That way, when the time comes you know exactly where everything you need is located. Also, try to see if you qualify for any tax breaks for being an early adapter of clean energy and environmentally friendly practices.

 

Do A Little Bit Here and There Over the Course of the Year to Avoid Rushing

Even though you don’t need to file over the course of the year, you can keep your own records to know approximately what to expect when the time does come. This will also keep you on track so you don’t accidentally over spend on something unnecessary, or help you plan to buy necessities after the next tax period.

 

Think Ahead

Always, always, always think about the upcoming months and how that will affect your accounts. You are bound to spend more some months than others and you’re also going to have more expenses. If you look at your records from the last couple months or last year if you have them, you should be able to make a good financial plan for the next fiscal year.

 

Ask a Professional Before Filing

No matter how well you think you did putting everything together and entering it in the computer, it’s never a bad idea to have a second opinion from a professional. H&R Block offers incredible services to help you check your work, and they have very reasonable rates. Also, if you pay for their service and for whatever reason there is a problem, H&R will assume responsibility so you don’t need to stress about them doing a poor job!!

 

Article by tony

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