Getting Organized for Tax Time
Canadian personal taxes are due by Midnight on April 30th. Now is the time to get organized for your 2009 taxes. Here are our top 4 tips for getting organized for your taxes:
Tip #1: Develop a simple folder system:
The simplest way to organize paperwork you’ll need for your taxes is to develop and use a folder filing system. You can have folders for each person and sub-folders for each type of document (bank statements, visa bills, healthcare receipts, doctors receipts, past-year notice of assessments…etc
Tip #2: Know what to keep:
You don’t have to keep every piece of paperwork you get in the mail. Talk with an accountant to see what receipts and statements you need to keep (it can be different for everyone).
Tip #3: Use the shredder:
To avoid identity theft, sny documents that contain your address or any account or personal information should ALWAYS be shredded before it’s thrown in the garbage. For the most sensitive documents throw them away in several bags, or over several weeks to be extra safe.
Tip #4: Use a safety deposit box:
Store your most sensitive documents in a bank safety deposit box or a fire-safe in your home. Use large envelopes and label them so you know exactly what’s inside each one.
These four simple tips will help get you organized for filing your taxes this year. Keep them organized like this throughout the year to save you time when it’s tax time again next year. Your accountant will surely thank you!