It’s official! Tax day is OVER! Fhewww!!! Preparing your taxes requires the gathering of lots of papers. The biggest headache is trying to find space to hold all of the documents you are required to keep for seven years. Who has room for all those documents? I sure don’t…
Yesterday, I posted my ideas and to-do list; one of my goals is to consolidate…rid the many file cabinets I have and organize everything into one, yes only one, document box. This document box/file will hold only the current year’s documents. My husband and I already have a great system in place. In fact, our CPA just loves how we hand everything over to him already organized and ready for his magic. But every system needs improvement. If you have everything in one place, such as the document box, then come tax time next year, you are organized and ready…virtually, no stress!
There are several ways to store your tax documents:
- Filing cabinet(s)
- File Storage System (I would suggest storing this in your garage or basement)
- Document box
- Computer (completely paperless – make sure you back up your computer monthly if you do this option)
No matter which option your choose, after you get your return from your tax adviser, file the documents in order by most current year. I find the best way to organize documents is by color coding, labeling, and in each section file in alphabetical order.
When you label your tax files, it is best to write Tax Documents with the year of the return and don’t forget to write the year you can discard (shred) the files.
I hope you can see that the idea of organizing papers and tax documents is not so uncomfortable. I would love to hear from you about your filing system and how you store your tax documents. Happy Organizing!