Did you complete your year with a sense that you need to begin the new one with a better routine and/or sense of organization? If so, you’re not alone, especially when it comes to organizing your home or office space. January is the perfect time to adopt new habits.
New Year/New Routine
The new year brings with it a fresh start, and many folks set goals in their personal life for everything from losing weight, keeping the house tidier, or traveling more. It’s also a good time to set goals for your business or personal office space and make it healthier, tidier, and more efficient.
Schedule Weekly Reviews
If you’re running a small business, or have a “side gig,” it’s important to review your books and income coming in and going out at least one time per week. If you only examine your books periodically, mishandling of your business earnings and expenses can easily be missed. With scheduled weekly reviews if something out of the ordinary surfaces, you can investigate the issue promptly and correct it in a timely manner.
Trust a Tax Professional
For most of us, it’s impossible to stay informed about ever-changing tax laws. First of all, it’s practically a full-time job. In addition, it can be pretty boring! Partnering with a reputable accounting firm such as Adams Accounting Solutions will help ensure you effectively leverage applicable tax deductions and credits for which you or your business might qualify, and their staff members stay abreast of all tax laws that can affect your personal life, or your company’s financial success.
Your Tax Professional Relies on You and Your Record Keeping
Make no mistake, your tax professional can only be as helpful as you allow them to be. Taking a big box full of receipts and documents to your CPA at tax time with no organization is a huge mistake. Who wants to pay an accountant’s hourly fee to simply sort your stuff before they can get to work on the real nitty gritty of income tax preparation? Stay organized, and label files to keep info easily retrievable.
Home Office Organization is Critical
When it comes to paperwork, whether it pertains to your personal life or your small business, your home office space is a vital landing spot for your paperwork. Yes, paperwork is greatly minimized now that many of us pay bills online, store files on our computer, or digitize receipts rather than keeping hard copies. Nonetheless, there are still stragglers that need to be organized and sifted through, and at year end there are lots of important tax-related documents that will surface. Even digital files can become cluttered on your laptop or desktop if not cleaned out. Why take up space on your computer with old and outdated files you no longer need?
Declutter in January
January is the perfect time to get rid of excess clutter, paper, digital files, and anything you no longer need. How big is your “I’ll get to It later” pile of paper that has mounted? How many unnecessary documents did you keep such as coupons, mailings, or printed documents you meant to read? Chances are lots of the papers in this pile are no longer even relevant to your life and can be pitched.
We’ve all saved that flyer about an event that sounds fun or interesting, and when the flyer surfaces again, the event has long since passed. Sort through and shred or pitch such items on a regular basis rather than letting the pile build up. Better yet, ask yourself whether you will REALLY go back and read it, buy tickets to it, or visit the restaurant or store to take advantage of it.
Seriously, don’t even save unnecessary papers, and your life will be easier and less cluttered. You can also think about snapping a photo with your phone, but beware, just like papers, photos can build up and clutter your phone, so be judicious when you decide to save something in the “I’ll get to it later” category.
Keep Frequently Used Files or Items Within Easy Reach
After minimizing the clutter, you can get to work giving your office space a fresh start. One of the most important rules of thumb is to place the items you use the most within easy reach. Consider file drawers in your desk or credenza, or separate bins organized by month, topic, or client (if you’re running a business). Whichever system works for you will help you categorize any needed paperwork all year long when you need to reference something, or when it’s time to file your federal and state income tax return.
Where to Store Tax Documents
When tax documents start surfacing, select a specific drawer, bin, shelf, or folder for them. Wherever you decide to keep these items, be sure you (and anyone in your home or office) know the “home location” for all such items. These are documents such as property tax receipts, W-2s, 1099 forms, year-end utility bills, the most recent investment dividend summaries, and large expenses such as medical bills or home/business improvements that might be tax deductible. Be sure these are all filed in whatever designated “home location” you choose. Pulling information for your tax professional will be immeasurably easier. Also consider, whether you make any cash or non-cash charitable contributions? Be sure to keep these in the same “home location” so you can easily tally them up for your CPA.
Adams Accounting Solutions can partner with you get your tax returns filed with ease. The staff are easy to work with and provide a useful “tax organizer questionnaire” that serves as a checklist as you gather all the necessary documentation, so nothing is missed.
If you hate accounting functions for your small business and it seems like you never have enough time to completes these types of tasks, consider outsourcing this work to Adams Accounting Solutions. Their employees are experts in tax law and can prepare 1099s or W-2s for any employees in your business. As well, Adams Accounting Solutions will maximize any applicable deductions. Maybe you never thought about keeping a mileage log for volunteer work you have done, or claiming sunscreen as a business expense if your job requires you to work outdoors. These are just a few ideas the professionals at Adams Accounting Services can help you address.
Call today or set up an appointment to explore your options.
