Wednesday, July 15, 2020

3 Ways to Stay on Top of Your Taxes Year-Round

taxes, business, income tax
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For most of us, tax season is finally over since all taxes for 2019 were due on July 15, 2020. As you heave a sigh of relief at having successfully filed your various forms, it's time to start thinking about next year's taxes. While you might feel sick at the thought of words like deductibles, tax credits, and adjusted gross income, if you take these steps now, next spring will go much more smoothly for you.

Talk to Professionals

Taxes are not your specialty, but they are one of most accountants' areas of expertise. Through sources such as, find an accountant with whom to review your filing process. Ask him or her for tips on how to improve your record-keeping and save time on next year's taxes. While you must pay this accountant for your meeting, doing so establishes a professional relationship with this person. Hopefully, he or she can help you with your taxes next year.

Keep Good Records

It's tempting to be lazy about filing receipts and recording tax-deductible donations. You think that you'll remember where you donated those 500 dollars now, but come next spring, you'll have completely forgotten. Save yourself a million headaches by keeping all your receipts until you note the cost of your purchase or donation, the date, and the company in a secure location. Check out the various apps for financial record-keeping on your smartphone's app store, or use a notebook if you prefer to write down your financial information. 

Save Your Tax Forms

As tax season approaches, your company sends you forms with information about your salary, taxes paid, and taxes due. Even if these forms are also available online, do not throw them away. Keep them all in a clearly-labeled folder, and take pictures or scan them to be extra safe. Watch out for tax forms that your business may release in the middle of the year if your employment status or address changes. Remember, you need a form from each of your workplaces, so if you have multiple part time jobs, you can't complete your taxes without information from each one.

Right now, all you want to do is forget about taxes until next spring. While this approach is tempting, force yourself to be proactive about taxes all year. This strategy requires more thought, but when you file taxes like a pro next spring, you'll be glad that you took the time to stay on top of your financial information.

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