I have a confession to make. Last financial year I didn’t label my tax storage folders correctly. They were both a shade of purple and half way through the year I started to put this years documents in last years folder. It took me a few hours to get my paper trail back on track!
The incriminating folders, both a shade of purple…
However as you can see, I have now labelled these cheeky folders so I no longer get confused.
Usually though, tax time for me is fairly easy because I sort documents into tabbed sections, as they come in during the year. The tabs I use are:
- Bank statements
- Home loan
- Investments (shares)
- Warranties, manuals and repairs
Then, when it is time to do my tax, I simply flick through the folder to find the required paperwork.
The best way that I have found to keep receipts in order and readable is to use the My Receipts envelopes from kikki-K. The set contains 12 envelopes, one for each month. You store each receipt in the corresponding monthly envelope and write on the front of the envelope – the date, cost and what it was for. This makes it heaps easier to add up at tax time and you don’t have to struggle with those fading dockets.
To improve and streamline the system I’m thinking about taking out the tab ‘Warranties, manuals and repairs’ and instead giving the section its own folder. I’m really hearting the cute Manuals and Warranties folder also from kikki-K.
What are your tips for making tax time easy?