I’m putting my money where my mouth is, and organizing my already kind of organized self to make taxes even easier to manage this year.
For my self-employed self, I don’t use QuickBooks or other software as it’s just more tool than is needed. I keep a running spreadsheet of income received, so I can track my quarterly 1040-ES payment obligations, and I keep receipts in tax category related folders - health care, auto, travel, meals & entertainment, office, etc.
I’ve already pulled those files out, and am going to do two quick tasks with each of them - one, spreadsheet them all by tax category and two, scan them into pdf image files. Then, they are going into the shredder.
In fact, I’m also going to scan/shred a bunch of receipts and other documents that I really don’t need occupying file drawer space.
When this two hour project is done, I’ll have nearly all of my receipted expenses logged and ready to enter into the tax software.
Tomorrow, we’ll talk about expenses for which you don’t normally have a receipt and how to organize them.
If you take these steps one chunk at a time, you’ll be all ready for tax preparation by mid-February, and the stress relief will be enormous.