November Already? Time to Prep for Tax Season!

As the calendar flips to November, the elections are over, and the holiday season is approaching fast, it's time to start tax prepping! At Rae’s Accounting, we know the impact of a well-organized approach to tax season—especially when you begin early. 

For our clients on the Tax Maintenance Plan, you’re already a step ahead—sit back and relax!

Here’s a look at what goes into a smooth tax season and why early preparation makes all the difference.

1. Gather Your Financial Documents

Start by collecting essential records such as income statements, expenses, receipts, and bank statements. Organizing these documents now will make a world of difference come tax season. If you use accounting software, this step can be even quicker, as most of your records will be stored digitally.

Tip: Double-check any charitable donations, business expenses, and investment records to maximize your deductions.

2. Evaluate Deductions and Credits

With another year in the books, now’s a great time to review which tax credits and deductions you’re eligible for. If you own a business, consider the range of deductions available, from office supplies to advertising expenses. For individuals, explore deductions for education, childcare, and healthcare.

Tip: Some deductions and credits have specific qualification criteria. Be sure to consult a professional if you're unsure about eligibility.

3. Review Your Business Finances

For business owners, a November review of your financials is invaluable. Are there any end-of-year purchases you could make to benefit your tax return? Do you need to reconcile any accounts or finalize your expenses for the year? A proactive approach now means fewer surprises in April.

Tip: It’s also a good time to consider potential investments in your business that might qualify for depreciation or other tax advantages.

4. Organize Your Receipts and Records Digitally

If your receipts are currently scattered across your office, car, and wallet, now’s the time to bring them together. Scanning and saving them in a digital format not only protects you in case of an audit but also makes filing easier.

Tip: Use apps or software to track and categorize expenses, so your records are readily accessible and organized.

5. Contribute to Retirement Accounts

Contributions to retirement accounts, like IRAs or 401(k)s, can help reduce your taxable income. Make sure you’re on track with contributions and consider maximizing them before the year ends.

Tip: Check with your financial advisor to understand any tax benefits associated with retirement contributions and whether it’s a good fit for your financial goals.

Wrap-Up: Relax—If You’re on Our Tax Maintenance Plan, We’ve Got You Covered

When it comes to tax season, a little preparation goes a long way. But for our Tax Maintenance Plan clients? You can sit back, knowing we’ve been working year-round to make tax time as smooth as possible for you.

Interested in taking the stress out of tax season? Talk to us about our Tax Maintenance Plan today, and let’s make tax time easier together!