About 140 million Americans will file tax returns this year, and, according to the IRS, about 20 percent of those will wait until the last week to turn them in. For most people, the biggest obstacle between themselves and completed tax forms is, well, themselves.
Deb Cullerton and Gene Venuto, time management and organizational experts with Priority Management Associates Philadelphia, say that lack of preparation and organization causes many people to wait until the last moment to finish (or start) their taxes. Fortunately, there’s still time to get organized and be ready well in advance of the April filing date.
“People hold on to the myth of efficiency, and believe it will be more efficient to do it all at the end,” Venuto says. “Every time they analyze what they need to do, they get paralyzed, so they do nothing and just put it off a little longer. That makes it worse.”
Fortunately, several tools are available to make organization much easier.
Basic financial tools
“For a lot of people, it’s simply a matter of not having a tax system set up,” Cullerton says. “Start with creating a system that suits the way you live.” Some of the basic components of that system should include:
A calendar. “Put all the critical dates on the calendar,” Venuto advises, including when 1099s must be received, when paperwork is due to the tax preparer, and when everything must be mailed.
Project organizer or accordion file. Create a place to store paperwork—and divide it into three areas: income, expense, and receipts.
A checklist. Make a list of everything you’ll need, including W-2 forms, 1099 forms on retirement plans, etc. (Refer to last year’s tax returns to make sure you’ve remembered everything.)
“People should evaluate the tools they have at their disposal,” Cullerton suggests, noting that most banking is done online, and that comes with its own array of financial tools. There are also numerous apps for iPhone, Blackberry, and Android smartphones, including programs from H&R Block® and TurboTax® that do everything from answer questions to help you to file. With apps like Shoeboxed and Receipt Filer Lite, you can snap a photo of receipts, then file and organize them digitally, while IDonatedIt is an iPhone and iPod Touch app that tracks charitable donations.
Venuto prefers to use Neat Receipts, a software program that comes with a portable, lightweight scanner that scans receipts for easy organization and digital filing. At the lower end of the high-tech spectrum, he says using Microsoft Excel to record receipts by category will make it easier to calculate total costs and organize records.
“As you go through it, think about what you wish you’d been doing all year to be organized, and set up a system for 2012,” Cullerton recommends. “Then, as soon as you’ve finished for this year, start using that system, so you won’t go through the same thing next year.”
Organize your taxes
How do you organize your taxes?
About 140 million Americans will file tax returns this year, and, according to the IRS, about 20 percent of those will wait until the last week to turn them in. For most people, the biggest obstacle between themselves and completed tax forms is, well, themselves.
Deb Cullerton and Gene Venuto, time management and organizational experts with Priority Management Associates Philadelphia, say that lack of preparation and organization causes many people to wait until the last moment to finish (or start) their taxes. Fortunately, there’s still time to get organized and be ready well in advance of the April filing date.
“People hold on to the myth of efficiency, and believe it will be more efficient to do it all at the end,” Venuto says. “Every time they analyze what they need to do, they get paralyzed, so they do nothing and just put it off a little longer. That makes it worse.”
Fortunately, several tools are available to make organization much easier.
Basic financial tools
“For a lot of people, it’s simply a matter of not having a tax system set up,” Cullerton says. “Start with creating a system that suits the way you live.” Some of the basic components of that system should include:
High-tech tax organization
Of course, if you can go high-tech when organizing your taxes—there’s an app for that!
“People should evaluate the tools they have at their disposal,” Cullerton suggests, noting that most banking is done online, and that comes with its own array of financial tools. There are also numerous apps for iPhone, Blackberry, and Android smartphones, including programs from H&R Block® and TurboTax® that do everything from answer questions to help you to file. With apps like Shoeboxed and Receipt Filer Lite, you can snap a photo of receipts, then file and organize them digitally, while IDonatedIt is an iPhone and iPod Touch app that tracks charitable donations.
Venuto prefers to use Neat Receipts, a software program that comes with a portable, lightweight scanner that scans receipts for easy organization and digital filing. At the lower end of the high-tech spectrum, he says using Microsoft Excel to record receipts by category will make it easier to calculate total costs and organize records.
“As you go through it, think about what you wish you’d been doing all year to be organized, and set up a system for 2012,” Cullerton recommends. “Then, as soon as you’ve finished for this year, start using that system, so you won’t go through the same thing next year.”