Well, somehow I managed to finish the tax returns for my clients and us - I never understand how it always gets done. I actually finished early enough to work in a day trip to Lancaster, PA on Friday.
Okay, I know sort of how I get it done - Organization!. Well, also there are a lot less returns than there used to be. I have an organized system for working on them. I even print a form for each client on which I summarize the information before I start the return. This lets me double check that I have entered the information in the program for the returns correctly. (If, say the amount of interest income on the summary sheet does not match what is to be on the return - one of them is wrong and I have to figure out which.) I print them out in the same manner each time. I also make a pdf file of the client’s completed returns, any hand written info pages from the client, anything that showed withheld taxes (such as a W2) for the client, any extra pages I wrote up (sometimes there are a lot of some item and I list it on “columnar paper” - that’s the funny paper with number columns that accoutants use - and then add it up and put the total on the summary page - I also use the back of the summary pages for shorter, simpler listings), and then the summary page - front and back. My paper copy of the client’s return is stapled together with all of these same items and put into my “to file” holder for next year. Now, since I scan in everything I needed and did, as well as the return, after I finish the return I shred last year’s paper copy. What? Shred it? Don’t I need to keep it as an accountant? I have the scanned copy and I keep that - it takes no space other than on a computer disk. I only keep the paper copy through the next year’s return to help me prepare the next year’s return.
The organization is important as I may be working on several returns at the same time. Clients send me their info - but sometimes they are missing information either because they forgot to include it or they have not yet received something and wanted to get the rest of the information to me in the meantime. By being organized and having a summary sheet to match up everything to (and checking last year’s return) I can pick up again if I need to stop and then go back to work on a return. Last year’s return helps (which is why I keep a paper copy for the year) as generally people have the same items year to year. You know, if they had wages one year, chances are they do the next year. If they had interest from the XYZ bank one year, chances are their bank account is still there the next year. If they had his and hers statements from a broker - well, they should again next year. If I find something missing compared to last year, unless the client let me know about it, I know to check for missing information.
Oddly logic is important also in this organization project. If a client has, say, a business from their home, not only will a missing amount for their business phone costs pop up when I compare this year to last, but it only makes sense that they would have some expense for using a telephone (of some sort) for their business. A client who works online has to have Internet service and maybe some other related costs.
Now despite the organization and being caught up enough to take a day off, I still did not finish until late Sunday afternoon. I knew I would be able to finish and so took for the day. I did end up with a small problem. A client who is a good friend moved to another state and I had not a return from that state in over 30 years. Their return was finished mostly, but I needed one tiny piece of information that I had not known I would need. I needed to know their school district. (This is something some states require, most do not seem to based on the returns I have done.) The name of their community matched one of the school districts, but I know that there still can still be a difference. (I live in a community that has a school district, but since I live just into the district, my house is in the next community’s school district.) So I had to set the return aside until I was able to contact them, they checked, and got back to me. It was a different district, so I was glad I waited. I prepared and filed extension forms for them and at the same time I mailed out the extension forms, I mailed their returns to them, they owed no taxes - the extensions were only to cover that they would not have the returns to mail out on time.
Now I have to catch up. Anything that was not important was set aside. (Please note that YOU are important as my posts went out timely.) I set up a file folder on top of my paid bills holder and put anything that came along into the folder. Three bills. A stack of bank statements for us, our reenacting unit, and my embroidery guild chapter. RV insurance policy. You know the stuff I mean.
Bills were timely paid while dealing with doing the returns due to them being in order in the wall holder next to my desk - and I made sure to note that of the three bills set aside, the earliest one was due to be mailed out on April 20.
I kept on my email that was of importance. The lesser emails - this store or that - I deleted. I get emails from a chat group and they sat unopened until yesterday when I opened all of them and dealt with them.
Dishes and laundry were kept cleaned on schedule.
On Monday afternoon I mailed out our returns and the items for the above client. I then came home and wrote up my treasurers report for our reenactment unit’s meeting that night. (And went to the meeting that night.)
So yesterday, Tuesday, I finally started catching up. I reconciled 6 bank statements - most from the 2 groups I am treasurer of. I caught up on the chat I mentioned above and got to see photos of 2 lovely crocheted squares from one of the other “chatters” and hear about weather problems of the 2 weeks and a miniature kit one of the others was assembling.
Today we went food shopping - yes, everything gets short shrift during the height of tax season.
I should explain that I am the daughter of 2 accountants. I grew up with tax season the same as I did with the seasons of the year or the holidays during the year - it was something that occurred at the same time every year. My dad would let me “help” with the photocopying - back when this was a relatively new thing and copies came out wet and had to be hung to be dried. No computers, of course. So it is a part of my life. My husband took many years to be accustomed to the idea of a period of a couple of months in which life basically stops - more so towards the end of tax season - for work. He knows now how it will all unfold.
THOUGHT OF THE WEEK -
If you have not filed your tax return yet, I hope that you have filed an extension and you get it prepared as soon as possible - remember it is only extension to file, not to pay and you could end up with interest and penalties if you owe money.
If you did file your return and are getting a refund - how about using it towards paying off bills or putting it in the bank towards having savings? If you owe money and couldn’t pay it - pay it as soon as you can to save to on penalties and interest which can add up quickly.
Start now to set up a system to be able to figure out what you will need to have for next year’s tax returns and organize a way to save the paperwork so you will have an easier time next year. (I am going to send to IRS and our various medical related providers/insurances in a month or so for some printouts we will need to apply for a low income/senior real estate tax exemption, so when the paperwork for that arrives next August, I will be able to do the forms right away and get them done and out as I will have all that I need in advance and I already have a folder set up to keep them in.)
For those of you in other countries with different income tax systems - I am sure that you have paperwork you need also at the end of the year and need to have it organized to find it all easily.
As I always say when I write about taxes - this is not tax or legal advice. Everyone is different and you need to check with whoever does your income taxes as to what YOU need to keep and what YOU need to do.
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