Anyone closely associated with an accountant knows that there are not four, but five seasons in a year: spring, summer, fall, winter, and “tax season.” During the other seasons, we accumulate leaves, snow, and mosquito bites. During ‘tax season’ we accumulate paper. And more paper. And if you have a small business or investments, even more paper.

Whether you are hiring someone to do your taxes or trying to decipher the forms yourself, it is imperative that your papers are in order for this ‘fifth season’. Organizing your tax-related documents isn’t just a project for the night of April 13. A good tax organization is a process that takes place throughout the year.

Some pitfalls of being disorganized at tax time:

• You risk losing important receipts / documents
• Feeling stressed from the mad rush to the tax preparer / post office on April 14
• Your tax preparer may charge you more money if you have to spend time going through your stacks of loose receipts.

How to remedy these situations at tax time? Get ready now for next year by getting organized!

Set up a file system throughout the year

Designate a box, accordion file, or filing cabinet to store and retrieve paper throughout the year. Create folders for receipts, credit cards, and bank statements – anything you’ve spent money on or need to track for tax purposes. As you purchase these documents, place them in the properly labeled folder. This is beneficial not only for tax season, but also for when you have to retrieve certain documents throughout the year.

Give your tax documents a home

Every January, our mailboxes are flooded with the documents needed to file your taxes. At the beginning of the year, designate a large envelope or box in one area of ​​your home or a file in your filing cabinet for these papers. Examples of these are:

• W2
• 1099
• Mortgage interest declarations
• Bank interest declarations
• Property tax returns
• Investment statements
• Charitable donation receipts

Sort and create categories for your documents / receipts

By early February, you should have received all the necessary documentation to complete your taxes. Take that envelope / box / file of collected papers and sort them by category. This process will allow you or your tax preparer to quickly locate your documents and receipts. Some basic categories are:

• Salary
• Real estate
• Doctor
• Childcare
• Investments

Avoid the hassle of your tax preparer by throwing away the envelopes your returns came in and cutting off the perforated edges of your income statements. Group your documents into the categories you’ve created and attach them with a paper clip. Put all of these papers in a binder or large envelope.

Call your tax preparation early

If you are using a tax preparer, call in January to schedule a mid-to-late February tax appointment. Doing this forces you to organize and collect all the necessary information for that date. Also, the accountants get very busy as April 15 approaches. You don’t want an exhausted accountant to do your taxes …

Being organized at tax time will give you more control over the tax preparation process. Instead of feeling overwhelmed, you will feel a sense of calm and accomplishment. Instead of frantically searching for documents, you can produce them at any time. Instead of your accountant cursing your name, you’ll sing his praises when you present him with an envelope with organized documents and receipts.

The sooner you get organized for tax season, the sooner you can get that big refund check. If that’s not motivation enough, I don’t know what is …