Getting Prepped for Your Accountant at Tax Time

In order for your tax professional or accountant to provide the best service, they need you to have done your homework. There are a variety of documentation that you need to keep throughout the year in preparation for this appointment, but in order to maximize your time with your tax professional, such as Kaufmann Advisors in San Francisco, CA, you need to make sure the documents are organized.

Here are a few tips to make sure that you receive the best service from your tax professional throughout the tax return preparation process.

Documents and Receipts

In order for your tax preparer to determine which deductions apply to your circumstances, or to determine your eligibility for various tax credits, you will need to provide documentation for all major changes that have occurred throughout the year. Therefore, it is important to make sure that you keep files with receipts for your business, medical expenses and charitable donations.

Also, if you spoke with your tax professional or accountant last year about potential deductions, you will need to be sure that you have documented those as well. Investments also mean that you will receive 1099s for your interest income and any summaries of your investment portfolio that are provided.

What is important to note is that your tax preparation fees go up if you are not organized. Therefore, resist the urge to stuff all of your receipts and W-2s into a box for your meeting.

Bring to your appointment a list of all your deductible costs organized by category. The accountant might not need the actual receipts for most expenses, although you should keep them filed away for at least seven years, per the IRS. If you have more complex transactions, or those that are out of the normal sphere, bring those receipts and documentation in.

Schedule Early

For many accountants and tax professionals, the closer to April 15^th, the more likely they will not have room for another client. Therefore, be sure to book your appointment early in the season. This can benefit you in a few ways. One, if you find out that you have an outstanding tax liability, then you will have a few weeks to plan out how to pay the outstanding taxes.

If you are planning to discuss tax planning with your client for the upcoming year, including any potential purchases of property or vehicles, then you will want to be sure that you schedule early to be able to have access to the additional time.

However, if your 1099s have a history of being amended, particularly for your investors, then you will need to be sure to inform your accountant not to finalize your return until any amended 1099s have been received.

Come Prepared 

Many accountants can provide a tax organizer worksheet that can assist you in getting organized for your appointment. This will cover a variety of areas where you might have seen changes throughout the year, including purchasing a new home or the birth of a new baby. Below are a few items to be sure and include in your tax preparations.

• Closing letter for a home refinance or purchase
• Real estate tax receipts if they are not paid through an escrow with your mortgage company
• New baby’s social security number to claim the child as a dependent
• Any tax payer ID numbers, addresses, and phone numbers for child care providers
• Business mileage for any unreimbursed business expenses

Also, be sure that you have your accurate cost basis for any investments. While you should receive a 1099-B, if an investment was a gift or the original receipt is not available, then you should do the legwork in advance of your appointment.

Check for Additional Deductions

If you did proper tax planning for the year, then you should already have an idea what to look for throughout your financial year. But it is still worth another look to be sure you didn’t miss anything prior to sitting down with your accountant. There could be that expense for a job-related subscription or a business oriented repair, both of which could be deductible.

During your appointment, be sure to tell your accountant about any major life changes, as this could mean additional savings. However, you will want to be sure to have as much documentation with you about these changes at your appointment.

Finally, it is important to remember that being organized and prepared will save your accountant time and allow them to truly assist you with your filing. Call or click here to connect with one of the tax professionals at Kaufmann Advisors in San Francisco, CA, to make your appointment!