Tips for Tax Time – Lessons Learned

Keep All Receipts – Audit Insurance

Collecting receipts in an old, dusty shoe box used to be the most common way that individuals tracked expenses to have them all in one place come tax time. Surprisingly, this practice is still very common. In this day in age, it seems ludicrous to not take advantage of the all the advanced technology available to us. Clearly, bookkeeping is very important, but why make it harder than it has to be?

Here’s a tip – go make some room in your closet by throwing out those old New Balance boxes stuffed to the brim with receipts and join the 21st century. It’s much easier than you think. With Itemize digital expense management, you can store all your receipts in cloud storage, and access them from any mobile device or computer.

Labeling/Sorting/Business Purpose

Are you an accountant? Have you memorized every tax expense category available for each type of item? Most likely not. You can always go the old fashioned route and keep receipts in a filing cabinet. The downside is this is a big a waste of time, space, and sanity. With Itemize, you can create custom tags to assign to receipts so you can find what you are looking for with ease. It is also easy to label and track each receipt as opposed to defacing receipts, causing auditors to second guess what’s written on each document. Paper cuts, complicated sorting options, and scribbled on receipts are a thing of the past.

Retention and Ease of Recall

Can you afford the space to keep six years worth of tax related documents? If you can, you must either live in a really big house or have a cushy corner office. For those of us that don’t have these luxuries, there is Itemize. Store decades of organized expense so you can always export reports at your convenience. Accountants and auditors all around the world will thank you.

View the Receipt Items

Auditors need to ensure that each item is accounted for. Be ready to prove that the Staples charge on your credit card was for office supplies and not that putting green you’ve been eyeing for your office! With all your receipts right at your fingertips, you can show line by line that each paper clip and pen is accounted for.

Tax Software/Services

Can itemize help you through the tax process? The answer is absolutely. Show off your tax savviness to other professionals and help them locate reports and documents, all neatly organized and ready for review. With tidy reports and records of your expenses, you can identify which tax write-offs you are eligible for and start saving money right away. Have peace of mind this tax season, and save money and time while doing so. Don’t waste anymore of your time and go start using Itemize today!