Getting Organized for the Tax Season

Does thinking of April 15th put you or your clients in a state of panic? Many accountants send out Tax Organizer booklets in January, but not all clients use them. Some people have alternate systems in place that help them present their accountants with all the necessary information in an organized manner. 

Regardless of the method, there is value in streamlining the materials sent to accountants, who are most efficient when provided with the tools to do the job: accurate statements about income, expenses, and deductions. By preparing an organized package and sending it in a timely manner, you or your clients are assured that the accountant has all the relevant information, allowing time to address the bigger tax issues.

Unfortunately, accountants are often presented with huge piles of disorganized documents and receipts. Sorting through these files, often for multiple clients, can make the fast-approaching April 15th tax return deadline seem like it appears in the blink of an eye; it is no wonder that so many clients need to have extensions filed.

Take the Panic Out of Preparing for Tax Season: A Client's Story

After taking over the finances of her family, Carolyn spoke with her accountant to inform him that she hired a daily money manager/financial organizer earlier in the year—Eddy & Schein. He was unfamiliar with this service, but Carolyn was already appreciating the benefits of the support provided by Eddy & Schein. Carolyn and Rebecca entered a year’s worth of checking information into Quicken. When tax season rolled around, Carolyn pulled out two huge Redweld file folders filled with receipts that she and her husband had been collecting. These were similar to what her husband had given their accountant each year in the past. The receipt of a Tax Organizer Booklet from her accountant proved completely overwhelming. However, with Rebecca’s help, she worked her way through the file folders and Tax Organizer.

Together, they sorted tax-deductible receipts and threw out irrelevant papers. By comparing the supporting documents, they checked the accuracy of the Quicken report they had printed for the previous year. They then used the relevant 1099s to fill out the Tax Organizer. In the end, Carolyn delivered an organized packet to the accountant: a four-page Quicken report, the completed Tax Organizer, and a folder of 1099s. She was prepared to hand it over before the end of February. The accountant was elated and commended Carolyn on her judgment to acquire professional assistance.

Moving forward into tax season, we at Eddy & Schein have some recommendations to reduce what can be a stressful process. Click here to download a free copy of our Tax Season Tip Sheet.

Tax returns range in complexity from the very simple to the extremely complicated, but the basic concept of preparing your tax materials is the same. If you or someone you know still feels too overwhelmed, a daily money manager/financial organizer can help.

Consider hiring one this month so you can get a running start. Search for a professional near you on www.AADMM.com or www.NAPO.net, or call us for help in hiring a daily money manager/financial organizer.

If you have any questions, please feel free to call us at Eddy & Schein in New York at 212-987-1427 or in Los Angeles at 626-395-7572.
 
Rebecca Schein Gideon Y. Schein,
Rebecca R. Eddy
Partner/Co-Founder
Gideon Y. Schein
Partner/Co-Founder

Eddy & Schein
212. 987.1427
NYmail@eddyandschein.com

626.395.7572
CAmail@eddyandschein.com

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