As I separated our tax information into various categories for our accountant, I made a list of all these categories. For my business tax notebook, for example, I have website expenses, receipts for supplies, sales tax records, mileage, etc., so each of these categories became a tab in the notebook. Now whenever I process an order or pay a business-related bill, I just hole-punch the paperwork and file it. This way it's easy to keep the numbers current on a monthly basis, so at the end of the year I only have to tie up loose ends, not hunt/sort/add everything all up.
To keep an accurate record of receipts, I copy them and file the copy in the notebook (with the originals stapled to the copy). This allows me to keep up with which receipts have been accounted for instead of working with piles all the time. Also, many receipts are printed on slick paper, so the ink rubs off or evaporates, leaving me with lots of small pieces of paper but no real evidence. Copying the receipts keeps them legible and again makes things easier for me to keep on top of things month by month.
Then I made a checklist of all my tabs/categories to guide me as I gathered all the stuff to hand over to our accountant. This way I don't waste time looking for stuff I don't need, I can tell where I left off if I have to come back to it, and I have an organized record to hand to someone else (just in case he doesn't understand how my mind works!).
Hope this helps--I'd love to hear any tips from readers about how you tamed your tax paperwork monster.


