Make a Container for Tax Backup Receipts

By Barbara Boone



Tax time is stressful for most people. However, if you have your information organized ahead of time, the annual routine can be easier to manage.

Plan now to make next year's tax time easier. Follow the directions below to create your own organizing container for tax backup receipts, then make a list of all of the deductions that you take for your business.

¥ Check with your accountant or financial counselor to see if you forgot any deductions last year. These are some of the common categories for deductions: advertising/marketing, cell phone, credit card, donations, insurance, office expenses, books/magazines, professional services, professional dues, training/seminars, and travel and taxes. Also include a compartment for mileage and income. You may have additional/different categories.

¥ Buy an accordion file folder labeled with the alphabet. One without a top works best. The reason you get one with the alphabet labeled is that you need as many compartments as possible. You will not use the letters, but will instead create labels according to the names of the deductions you have chosen.

¥ If you have an electronic label maker, use it to make the labels for each compartment of the accordion file. If you don't have an electronic model, write the labels by hand.

¥ Lay the labels out and put them in alphabetical order. It is easier to file receipts this way. Attach the labels to the file folder.

¥ Place the file folder in a file cabinet next to your desk, if possible. It should be close to your desk so that you log the receipts into your computer files and then immediately file them into the accordion folder.

¥ When it is time to do your taxes, total each category and take the information, along with the backup receipts, to your accountant.



Barbara Boone operates Busy Bee Organizing Services. She can be contacted at 443-854-3563 and Barbara@bzbeeorganizing.com.