Maintaining and securing records of your personal information is vital for getting your financial house in order. Whether it’s for this filing season or next, the Pennsylvania Institute of Certified Public Accountants offers recordkeeping recommendations to significantly ease the tax filing process.
Organization is essential to reducing the stress of tax preparation. Good organization also helps insure that you don’t miss important financial information that could affect your tax filing status. The PICPA suggests the following best practices for information keeping:
•Develop a method: Whether on paper or electronically, have a clear, consistent recordkeeping method that fits your financial situation. Having receipts and statements organized into files will help ensure you have all the records you need. It will make the process of working with your tax preparer more efficient.
Most CPAs suggest separating your records into at least three groups:
•Income: Include statements for anything you receive that gets reported to the IRS, such as salary, dividends, interest, and self-employment earnings.
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