Tax preparation made easy

At this time of year when taxes are due it always makes sense to review what changes we can implement to make the process easier for the upcoming year.  With the 2011 tax season drawing to a close you may want to review your paper system for 2012.  Were there documents you searched for?  Did you spend extra time compiling numbers you needed?  Even though a few of these tips are repeats from previous blogs they are worth looking at again:

-Whether you use a hanging file with interior folders, a divided tote or a binder with pockets, you should have one place where all your tax related paperwork goes throughout the year.  Keep the paperwork somewhat accessible so you can add documents as they arrive.  Leaving tax-related paper out to be filed at a later time can result in the documents never making it to the storage area. 

-While this list is not exhaustive, here are some sub-categories you could have and the documents within them.  If you run across another sub-category make a folder for it: “Charity” for any non profit donations you make, “Medical Expenses” for any health expenses you can claim, “Tax Documents”  for all end of the year statements (financial statements, 1099-HCs, 1099s, W2s, etc), “Income” for paystubs, rental income, prizes etc.

-If you do not have Quicken or Quickbooks it can be helpful to maintain a spreadsheet throughout the year.  As you incur an expense it can go on the spreadsheet in a specific category.  At the end of the year you will have the total number for each area and not wasted time reconciling receipts.  Examples of good expenses to track would be medical, education, mileage and travel etc. 

Of course all of the above are just guidelines and a basic structure.  Take some time to properly set up for 2012 and make it your own!

Preparing for school papers

School is officially here, and with it comes the often daunting task of keeping up with school papers.  Homework assignments that need reviewing, the permission slips for another field trip, the sports schedules and the list can go on an on.  The paperwork often gets lost, stuffed down in the bottom of a messy backpack or submitted after its deadline.  Staying on top of school papers doesn't need to be hard and frustrating!

First, choose a spot in your home, most likely your kitchen or entry, that is easily accessible to you and the kids.  If the school papers are not located in an area convenient and central it will be difficult to use your new system without a lot of effort.  Second, choose a paper storage method best suited to you and the age of your children.  There are many options and creative solutions available so it is essential that you think through the way in which it will be used and if everyone involved will be able to implement the system effectively. 

Paper trays stacked on top of one another are a popular solution.  A desktop file with manila folders works for some families, and still others who like their counter tops free of paper will use wall mounted magazine files.  Once you have picked your storage solution assign each child, you and your spouse a slot and label them.  Now you are ready to go!  When a child comes home with documents for review they go in your slot.  When you have completed the task the paper goes back in the child's slot or filed depending on the action needed.  The kid's slots can be used for any documents they are responsible for, or used as a temporary landing zone for art and other school papers that will need to be filed or added to the family calendar. 

Third, maintain your system.  Paper building up in the slots should be routinely purged and tossed or purged and filed.  The school paper management system will quickly become unwieldy if it is not inspected for excess on a regular basis.  Now enjoy the new home your papers have and your clean fridge and counter tops!

De-clutter your desktop

There is only one thing you must know for maintaining a clutter free desktop: Keep only items you use regularly on the surface of your desk.  The desktop is prime real estate and should only be home to things essential to your everyday work, such as laptop, writing tools, phone and maybe a few active files.

If you must keep active paperwork on the desk, put it in file folders for each project and place the folders in some sort of desktop file holder.  Some file holders come with drawers and cubbies for pens, paper and frequently used office supplies.  Others can be open file stands or enclosed file boxes,  ensuring there is a product out there to suit your specific needs. 

Simplicity is best, so try to keep the essentials down to a minimum.  Adding shelves above a desk is a great way to store resources you access regularly, and drawers can be used for items you don't need at your fingertips.  Once again the rule is to only allow items that are essential to your everyday work a place of honor on your desktop.  

Jump start your tax preparation for 2011

So maybe your 2010 tax filing experience wasn't especially smooth.  Perhaps you found yourself gathering paperwork and data at the last minute, only to miss information and duplicate your efforts a few times.  Did you ever need something, like a letter or receipt to prove a deduction, and then spend precious time searching for it? Though the 2010 tax season is not quite over, now is a good time to get 2011 off to an organized start with some easy steps!

-Create a folder or binder for “Taxes 2011”.  Keep it accessible (but not out on the desk) so you can easily file without extra work

-Make sub categories within it, such as “Charity” for any non profit donations you make, “Medical Expenses” for any health related purchases you can claim, “Tax Documents”  for all end of the year statements you will receive, and/or whatever other headings your information would fall under.  For example, if you are renovating your home and some of the expenses are tax deductible, make a folder for that project

-You can store the paperwork a couple ways: Use a hanging folder labeled “Taxes” as the main file, then use manila folders to organize the interior categories.  If that isn't quite your style use a binder labeled “Taxes” and use dividers with pockets to keep the contents separate.  You could also use a colorful expanding file tote

However you do it, by creating a home for all your tax related paperwork you will save much energy and aggravation when 2011 arrives!

Technology doesn't always fix the problem

I met with a prospective client a few weeks ago to discuss the possibility of organizing her business office. During our initial consultation we talked about the problems she was facing with her desk and why it was always unkempt. At one point in the conversation our attention turned to the disorganization within her computer and why her computer files and emails were not being managed properly. It highlighted an often forgotten fact…Technology does not automatically make a person organized! In fact, sometimes it can make their situation worse. My prospect’s desk and computer were remarkably similar: her papers were all mixed up on the desk and so were her computer documents. Her physical filing system was not functioning properly, and she had not yet created a system for her computer files that was efficient and effective. In the end I believe that good habits and discipline make someone organized, not necessarily the technology they use. For some people, electronics and technology are a God send and make life easier. For others, it highlights and accentuates the current lack of organization.

How to handle paper

Paper can be the most pervasive thing we encounter on a daily basis. You deal with it at work and then get attacked by paper when you come home. It is easy to become overwhelmed and not do anything. But as we all know this leads to piles and further sensations of having no control. Eventually everything just sits there and then important information starts to get misplaced.

To avoid this scenario, sort papers over a shredder and recycling bin. Right out of the gate you can get rid of any junk or obsolete information in the recycling, or shred documents with important information. By doing it at that moment you prevent build up of big piles that are harder to go through later on.

Have a home for everything. All paper should get trashed, go in a folder or basket for temporary holding or go on a memo board for easy access. If you have an upcoming event and get a postcard for it, record the event in your calendar and then place the postcard with directions in an “events” folder or tack it to a memo board. If you get a document at work pertaining to a specific project put it right with the related papers, either in a binder clip or folder and set it aside until you are ready to work on it.

As soon as you receive relevant paper distribute it to its proper home and watch the piles slowly go away!

Prepare for 2009 taxes

Have these documents ready for your 2009 Taxes: -Your tax return from 2008 and the cost of preparing it, if prepared by someone other than yourself -Any forms that have W-2, 1098, 1099 etc. printed on them -The total amount of local and state taxes you paid in 2009 -All relevant social security numbers and birthdates required on your tax return (children, spouse, other dependents etc.) -Documentation of all contributions you made to retirement plans or IRAs -Any expenses related to your investments -The purchase date and total investment in all stocks or other property you sold -Records of additional income, such as rental property, a hobby, jury duty, alimony, gambling etc. -Expense and income documentation for work that is not already shown on your W-2 or 1099 -Income from unemployment and expenses related to your job search, if applicable -Expenses related to your job, such as publications, travel, tools, dues, uniform etc. -Records for personal property tax, real estate and mortgage interest -Total miles driven for medical purposes or charitable purposes -Non-cash charitable donation records -Amounts donated to charitable organizations, schools and religious establishments -Documentation to support higher education and childcare costs -Amounts paid for health care insurance and also to doctors, hospitals etc.

Take the stress out of tax season

As you prepare for tax season it can be a mad rush to find all the appropriate receipts and calculate the numbers. Not to mention the overwhelming tax document that still needs to be filled out. Who wants to spend all that time and frustration doing taxes? While it may be too late this year to change the organization of all your tax preparation, start 2010 off right with these simple steps:

-Create a folder for your taxes. You can use a thick hanging file, manila folder or an expandable file. Any forms, tax documents etc. should go in here. Your finished tax return will eventually be filed in this folder.

-Create sub folders within the main folder for charitable donation letters, tax deductible receipts and any other tax information you find pertinent.

-To eliminate last minute reconciling, try to maintain a log or Excel spreadsheet tracking tax deductible expenses. At the end of the year you can simply tally all the numbers instead of going through all your receipts one at a time.

-Consider paying an accountant to do your taxes for you. It is much easier to hire a professional than to navigate the tax document yourself. As an alternative, consider using a software like Turbo Tax to do your state and federal taxes. It is reliable, much faster and allows you to not only print and save electronic copies of your return, but you can mail the return directly or file it electronically. Many of these programs can be purchased for businesses, too.

10 simple ways to organize your office and manage your time

1) Keep a master list of your projects. Draw weekly and daily tasks from this list. 2) To minimize papers on your desk, keep all current projects in folders, either in a filing cabinet or a desk-top file. Pull a file only when you intend to work on it. 3) Designate a time everyday to answer emails and return phone calls. This reduces distractions and the tendency to get caught up in lower priority issues. 4) Do not stuff a filing cabinet drawer. Filling a drawer to its maximum capacity makes the drawer nearly impossible to flip through. 5) Designate a place in your office for all supplies, electronics, multimedia, papers and desktop necessities so your office is divided into zones. 6) Make sure the supplies for the activities you do the most are closet to your desk or at least easily accessible. 7) Retain the information, toss the paper. 8) Utilize the vertical space in your office by using wall pockets, memo boards and shelves. 9) Use drawer dividers and trays to help organize drawer contents. 10) Tidy up your desk at the end of the day. This gives you a fresh start every morning, as well as allowing you to return everything to its proper home.

Purchasing a good file cabinet

So you need a place to put all those papers. A filing cabinet is the obvious solution. But you want to get one that will last and fit your needs adequately. Take these points into consideration when you shop for a filing cabinet, whether it is for home or business use.

1) Do you want legal or regular width drawers? If you prefer legal size papers, buy a cabinet specifically meant for legal size files. Trying to transform a typical filing cabinet into a legal size one wastes a lot of valuable space.

2) Be sure the drawers run on tracks. If the drawers are free and simply slide out they will be difficult to move once they are fully loaded. Invest in a cabinet with drawers that run on sturdy tracks.

3) Be sure the drawers have high sides so you can use hanging files. If that is not possible, purchase an inexpensive rack to insert in the drawer. A filing cabinet becomes a black hole if manila folders are simply lined up in the bottom of the drawer.

4) Consider the material. The rule of thumb is sturdy. I thin metal file cabinet will buckle over time and a file cabinet made of low quality particle board will not last as long. Invest in a cabinet made of high quality materials to get the most life out of it.

Top 8 items for a home command center

Top eight items a home command center needs: Family wall calendar- Every family member should have their activities listed on this calendar. Consider using it to plan meals as well. Message board- Have a dry erase board for phone messages and reminders. Magnet board- Sometimes you can find a magnet/dry erase combo. This is great for holding small papers in transition. Key rack- A simple key rack will keep every driver’s car or house key at the ready. Cell phone storage- There are several products out there that provide a home for cell phones and their charging cables. In/Out bin- You should have a spot for all incoming mail and outgoing mail. Go through the mail everyday to keep it from building up. Bill holder- Use a wall pocket or a basket to keep bills that are waiting to be paid so they do not get lost in the mail shuffle. Make sure you mark the due date on the envelope. Personal spots- Use wall pockets or small corkboards for each family member to put reminders, permission slips and school schedules. A great example of these components is the “Daily System” found at PotteryBarn.com.