I find that I help most of my clients with gathering their tax information each year. Obviously, I'm not a tax professional so I'm unable to prepare their tax forms. However, tax professionals are so pleased when they receive a nice organized package of items from our clients. Our clients are so happy that it's done and they don't have to worry about it.
Here are some tips to helping your clients stay organized.
- Start a file for the new tax year in January.
- As the tax documents arrive in January make sure they only go into this file
- If the tax professional sends a tax preparation sheet add this to the Tax file to review at the end of the month of January.
- Pull out the previous years taxes and compare the tax preparation sheet with this year. Make sure that all of the banking institutions that sent statements last year, have sent their documents this year. If your client has started with a new bank make sure you have their documents too.
- If you don't receive all of the statements by January 31st follow-up with each company that will provide a statement.
- Help your client to fill in the tax preparation worksheet. If you don't completely understand the worksheet, that's OK-leave it blank because the documents that you're sending are very important for the tax professional to receive.
- Have your clients had a lot of medical expenses this year? Tally this up for them.
- Have your clients had a lot of home care or help at home? Share these numbers with their tax professional.
- I organize the paperwork that you're sending in the same order as the tax worksheet mentions these items.
- Make a copy of everything that you send to the tax professional so that if it's lost in the mail you have a copy.
Tax professionals are extremely thankful for your help and efforts because if you were not helping your clients, they may not submit their taxes and this can be a big headache. This is really helpful to them and they may even charge your client less if their paperwork is well organized.
Tax professionals are good marketing referral sources for your business.