Yes, it’s that time of year. First tip? Get organized.
Tax prep and filing for this season actually started a year ago, like it or not. For business clients and sole proprietors it’s really important to track expenses and save receipts as you go along. Putting together the costs associated with your home office, as an example, is a royal pain when you have to go back and dig up your utility bills and property tax statements.
For personal tax clients, easily missed items include charitable donations, dues and professional fees and items that you paid out during the course of the year. T4s are much easier – they come in just before tax time – when you’re thinking about tax – and seldom get lost.
Best solution? Set up next year’s tax file now. Get a folder, label it Next Year’s Tax, and keep it front and centre all year so when receipts, bills, statements and things you’ll need come in you can just drop them in the file. Much easier for you when putting it together next spring, and much easier for me to do your tax when everything comes to me at the same time rather than having to bug you for those details!
But it’s not too late to get better organized for this tax season. It’s early yet and you’ve got a month or so to put your file together – so start now!