A Simple Filing System to Make Tax Time Less Taxing

By JC Kadii, Mortgage Virtual Assistant^SM

Picture this. It’s April 10 and someone is desperately digging through boxes, looking for old credit card statements, telephone bills, check stubs, [ANYTHING!] in a last-ditch attempt to find every single scrap of deductible paper before tomorrow’s visit to her tax preparer. Sound familiar? If so, you are not alone.

This simple, practical system will help you organize your receipts so that next year’s taxtime will be a breeze.

What you need

• Last year’s tax returns.

• A box of hanging file folders.
• A box of manilla file folders.
• A set of labels.
• A marker or label maker.

The Steps

Step 1 – Label a hanging file folder for each revenue or expense item on your tax returns.
For example, if you hired someone to create your marketing materials last year, there’s a good chance you were able to deduct that expense. If this is the case, create a “Marketing” or “Advertising” folder.

Step 2 – Label a manilla file folder for each month or quarter (your choice) and place it in each hanging folder.

Step 3 – File your receipts in the appropriate folder. In this case, all your receipts for ads, marketing materials, etc., would go in the “Advertising” folder for the appropriate month or quarter.

At taxtime, take the files to your tax preparer. To lower your tax preparation fees, subtotal the amounts in each category.

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JC Kadii, Mortgage Virtual Assistant^SM . Through http://www.close-more-loans.com/, JC leads a team providing top notch administrative, internet marketing, and technology services to mortgage professionals. Mortgage professionals are encouraged to visit the website and sign up for the More Closings email newsletter to receive the report 6 Steps to More Referrals.