Tax season will be here before you know it. Have you started getting organized? Have you started taking those receipts out of the old shoebox and making piles? Being organized will not only make tax preparation smoother, but it could also save you some money. How? Well, I’m glad you asked. Tax professionals charge fees in many ways. Some charge per return, others charge per form….then there are some that charge by how much time they spent working on your return.
If your tax professional is charging you according to how much time they spend on your return, imagine how much you would save if you were organized. Think about it….all those receipts would have to be taken out of the shoebox, separated into piles, and calculated BEFORE (s)he even starts your return!
May I make a suggestion? Contact your professional and ask, “How much would you charge to organize my receipts?” When they give you their hourly rate, take the shoebox out, organize them yourself, and pay yourself.
-Separate your receipts in piles according to expense
-Calculate the total of each expense and record them on a spreadsheet
-Store the receipts in a paper file folder or scan them to keep in a folder on your computer
-print and take your spreadsheet to your tax preparer