Tax season is a tedious time of year for most households—especially if you own a small business (like this blog) and/or a construction company (that can’t stop the crew’s work to create order to the chaos of paperwork)!?! We all know that organizational tips keep the books in line but what’s your method!?!
I (Litsa) used to use an envelope filing system up until two years ago when major, medical bills were flooding my desk! I needed to update my system. I began with two one and a half inch notebooks. Inside, I labeled the sections that I would be using: State Farm, Verizon, Daughter’s Medical, Husband’s Medical, etc. When the bills arrived, I punched holes in the bills and/or tax paperwork that was relevant in keeping. I documented amounts on my money operating system and had an ongoing list of paper items to filter through. As the mail arrived, I organized. Then, when it was time for tax season, all I had to do was calculate final figures.
The time I took to organize each day, week, or month paid off when the end of the year arrived and I had everything in order to file (………at least the household’s aspect of the paper trails for tax season)!!
Start your 2015 tax season organized—select a filing system that works for your family’s needs. Also don’t miss my tip in using a visual aid to reduce debt – medical debt snowballs!
Note: Our small family of three only required two notebooks but you might find you need more than two. My second notebook was strictly for medical use (bills, explanation of benefits, etc.) so that if there was a medical transaction that I needed to put my fingers on, I could!