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How to Organize Your Records for Efficient Tax Planning

Posted on August 6th, 2018

When preparing tax returns, the goal is reporting accurate numbers. This way, you don’t over or underpay, minimizing the issues you must deal with once tax season is over. Keeping your records neat and tidy isn’t a once-a-year event, but instead takes daily planning and attention.

Create a Centralized System

Keep all hard copies of records, statements, receipts, etc. in one place. This may require a large filing cabinet or many, but it’s worth it to have easy access to paperwork. Separate sections of the cabinet by year and divide that year into the months. Further divide those month sections into the different types of files you have, such as tax documents, statements, accounts receivable, payable, and so on. Although it seems granular, the more detailed each section, the easier it will be to find the items you need.

The files themselves should be tidy, with receipts and loose papers being bundled up in clearly-marked folders. Make a routine for yourself and your employees to ensure that record management is part of the daily regimen. Once someone returns from a company lunch, you should scan and file the receipts. Do so for every kind of physical paperwork you receive; it’s much easier to file it away right when it enters the office or is printed out.

Use Accounting Software

An organized filing cabinet is only part of the record keeping puzzle. Your digital records also need to be in order, but this may be a bit more challenging if all you have are spreadsheets, online statements, and more. Implementing accounting software gives you a platform for tying your digital paperwork together.

Tools like QuickBooks allow you to categorize transactions and connect third-party services for bill payments and other functions, enabling you to combine your business’ computer records. These resources also allow you to generate earnings reports and analyze accounts, delivering unique insight into your organization.

Need Help Streamlining Your Paper and Digital Records? Call Us

Even when you have a reliable paperwork system and robust accounting software, the records might still be in a mess. Davis & Associates, Certified Public Accountants can help you organize your books and establish a system that makes sense to you. Call us today for accounting and bookkeeping cleanup!


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