I have finally unburied myself from the taxes of the season….well, almost. How boring would life be without the late filers? Looking back on the previous months, I have one thing to say — please work on your organizational skills this year!
I have one client who literally hands me two boxes of unopened mail every single year right before taxes are due. This is frustrating for me because it is time consuming, and almost an embarrassment to bill the client for what seems like such a petty expense, but it takes me on average ten to fifteen hours just to perform this task – and TIME is MONEY!
I have mentioned this before, and I will mention it again. The survival rate of your company is affected by the frequency of your accounting and how well your records are kept — it´s as simple as that. A company simply cannot function without some level of organization.
If you wait until the last minute to pull records together, you will undoubtedly be shortchanging yourself. Most likely, you will be missing statements, you will have no idea what your vehicle mileage for the year is (because you didn´t keep accurate records), you will surely be paying unnecessary finance charges and late fees throughout the year because, you, like my client, don´t look at your statements.
Speaking of which — this very same client had no idea until I brought it to his attention that he had been billed $229 per month for the entire year for credit card protection on an account that had less than a $2,000 balance. This is insanity.
It does not take much effort on your part to organize throughout the year. At a bare minimum, keep a large manila envelope in your truck, one in your office (and even one in your home if necessary) for each and every month. You can write notes on the envelope if you wish, i.e. mileage. Put everything in that envelope whether you think it is taxable or not. I guarantee this will save you money on accounting fees, and your accountant will thank you for it!
"Nothing is so fatiguing as the eternal hanging on of an uncompleted task." ~William James