Avoid the "Tax Prep" Blues
If you are like most individuals, tax preparation is one of the dreaded rituals that we put off as long as possible. This procrastination is most commonly due to the daunting chore of gathering and organizing the information required to complete the tax return, which is another job just by itself. If the information is unorganized, spread throughout different locations, or missing, several possible tax deductions will fall through the cracks unclaimed. But tax preparation doesn't have to be this difficult or labor intensive in order to get the most from your tax deductible spending. So - lets get organized!
Get into the Tracking habit (Tracking is the first law in book, "The Four Laws of Debt Free Prosperity"). Not only does Tracking arm you with the information you need to know about your spending, but it also drops real dollars into your pocket by capturing the tax-deductible items that might otherwise slip through the cracks. Teach yourself to always ask for a receipt when you complete a purchase or transaction. An incomplete, or unreadable receipt makes it very difficult to maintain accurate records, so make sure that it shows what it is for, whom it is from, and the date. If you are not able to get a receipt, write the transaction down in a notebook, planner, or register system. Make sure you capture all types of transactions, including cash, checks, and credit cards. This will supply you with the information required to summarize your spending activity for your taxes and for you to make knowledge-based decisions in directing your finances.
Capture and summarize your spending activity in one location along the way - well before tax time arrives. The information found on your gathered receipts is only valuable if you are able to organize them in a meaningful manner. The Money PlannerŪ Online system has been designed to capture your spending activity in a simple to use way that is easily accessible, and not too accounting intensive or confusing. Remember, your goal is to gather and summarize, not to become an accountant. Take a few minutes each day or set aside some time each week to enter your spending activity. Don't put it off until you make the discovery that having a disorganized mass of receipts is almost as much trouble as having no receipts. As you enter your transactions, make sure that each one is combined with similar transactions so you can easily summarize your spending activity into categories or tax-deductible items.
Simply gathering, capturing, and summarizing your spending activity will better organize you for tax time. If you do your own tax filing or have someone do it for you, having all your spending activity summarized and in one location will make the job a lot easier, less time consuming, and less costly. Thanks to the accuracy of your records, you will also be able to take advantage of all tax-deductible expenses that would have normally fallen through the cracks.
