Many business owners and individual taxpayers should develop good accounting skills, to help their C.P.A., when the C.P.A. checks that taxpayer’s records, usually to calculate tax returns. More taxpayers should learn this advice.
Maintain hard copies of documents for at least seven years. Keep copies of online transactions, on a computer, in files that have detailed names, for example “Feb. 2012 banking” or “March 2012 income.” All of those documents should be in forms that can easily be printed.
Back up computer files, frequently, onto an online program, flash drive, and/or CD. Check the back ups, to ensure that they can easily be found and to ensure that the information wasn’t erased. The information should be easy to find, in case an accountant needs the information, quickly.
When starting files, develop a filing system that works well for you. Keep the system consistent, to ensure that you can easily find a document years later. In a business, having a consistent filing system will help all employees learn the system.
All of these tips will help taxpayers with some of their own accounting. They will also help C.P.A.’s, if a taxpayer needs to hire one.
Sansone & Associates, P.C. is known for guiding our clients through a full range of tax planning and preparation decisions, to minimize tax liabilities. We pride ourselves on being available to play a major role in support of your financial, record keeping, and tax planning issues. If there is anything we can help you with, please schedule an appointment with one of our certified public accountants by calling 815-459-4300.