Category Archives: Paper Management

Ugh! Paperwork

It’s the time of year when we need to start getting our tax documents together.  We’re all, or most of us are, getting ready to either prepare our taxes or meet with a CPA to have them prepare them for us.  Fun times!  

April 15th, the deadline to file taxes, is only two months away.  Even though that sounds like a lot of time, it goes quickly.  Also, remember that if you’re using an accountant, they are probably wanting you to get your appointment on the calendar now as they’re getting booked up.

I know NOBODY looks forward to preparing or paying taxes but, we all have to do it.     Good thing is, tax time does not have to be stressful!  If you have your financial documents together things will be soooo much easier.  So, if you’re not organized this year and you’re stressing over it, why not get your sh*t together now.  This would be the time!

As a quick reminder, paperwork is one of my specialties. Having spent 30 years in the legal industry as a Legal Assistant/Paralegal before starting OCD, I can implement a filing system tailored to your needs.  I can go through your files or piles and make sense of them.  I can gather up the information/documentation needed for your CPA to file your taxes.   I know the IRS retention guidelines and know what to keep, what to shred, what to archive and what to toss.   If you need help, please give me a call.

While you’re dealing with paperwork, this is also a great time to review your important documents to make sure everything is up to date. Think of it as Financial Spring Cleaning. This is the perfect opportunity to make sure that your legal and financial documents are in order.

 

Insurance:

When was the last time you looked at your insurance policies?  Do you understand your coverage?  When was the last time you had your insurance policies reviewed?

It’s a good idea to have all of your insurance policies reviewed annually.  Get quotes to make sure you’re properly covered and that your rates are competitive.

More importantly, if you’ve gotten married, divorced or had children you might want to consider changing/updating your beneficiaries.

 

Estate Plan:

Do you have an Estate Plan?  When was the last time you updated your Trust and/or Will?

If you already have a Trust or Will in place, talk to your attorney every few years to make sure that everything is up to date.  Laws change and your estate needs to be updated accordingly. 

Further, if you’ve married, divorced, had children since you initially had your Estate Plan done, these documents need to be updated.  I’m sure you wouldn’t want your ex to inherit your assets or make important decisions about your healthcare if and when necessary.  These big life events are emotionally charged and making changes can slip through the cracks.  This is a gentle reminder.

If you don’t have an Estate Plan and have property and/or children, you might want to consider meeting with an Estate Planning Attorney.  Otherwise, your heirs will have to go through probate which is both costly and time consuming. 

Further, most people don’t know this BUT, if you have a child that is 18 or over, they SHOULD have a Health Care Directive in place.  Even if your child still lives with you or is in college and you support them, you do NOT have the right to make decisions about their healthcare unless you are the designated person on their Health Care Directive once they attain the age of 18.

 

Retirement Plan:

Do you have a 401K or other Retirement Plan in place?  Perhaps you forgot to roll over your Retirement Plan from a prior employer. 

Do you have any investments? Consider meeting with a financial planner to make sure that your investments are sound.  Again, things change and your portfolio may need to be re-allocated.   

If you’ve gotten married or divorced or had children you might want to consider changing your beneficiaries or the amount allocated to your beneficiaries.

I know paperwork is tedious. I also know that many people avoid it because they don’t really know what to do with it all.   If you need assistance, please give us a call.  We would love to help! 

Finally, if you need a referral to an Insurance Agent, CPA, Estate Planning Attorney or Financial Advisor, we would be happy to refer you to the right professional.

Set Yourself Up For Success When Working From Home (Part II)

For those of you who didn’t receive or read last month’s newsletter, this is a continuation, Part II, of my article “Set Yourself Up for Success When Working From Home”.

The following are some great tips to follow to be more productive and efficient when working from home.

1. Work Center: The first thing I would highly recommend is to create a centralized work center:
• This area should contain everything you need 90% of the time.
• These items/supplies/files need to be accessible.
• It would be best if you can set this up so that what you need is within arms’ reach.
o If that’s not possible always make sure to have what you do need before starting your work to avoid unnecessary distractions, interruptions or delays.

2. Connect: While working from home, we don’t have the same opportunities to build and maintain the personal connections that we would normally have when working with the same people in person. Therefore, it is extremely important to be vigilant about staying in touch with clients, colleagues and other associates.
• Do something every day to maintain relationships and form new ones.
o You can call, text, email. Send a note via facebook or Linked-In.
• When it’s appropriate and safe to do so, meet with people face to face.
o In the meantime, use whatever works for you, i.e., zoom, facetime

3. Contact Management System: Having a way to funnel all of your contacts and other pertinent information into one place allows information to be easily tagged and retrieved.
• On-line contact management systems and CRM’s have become increasingly more popular and there’s a good reason. It works! I use a CRM in my business daily and in so many different ways that I can’t imagine running my business without this tool. The possibilities are endless. Some of the ways that it can be utilized:
o Data Bases:
 I have data base lists for: my clients, one for vendors, one for each of my networking groups.
o Reports:
 Ability to run reports for just about anything: income by day, month, year and/or client; who referred business and when.

4. Paper Processing Center: Whether your office is the kitchen table, a converted closet, or a corner suite, you need a quick and easy way to handle paper.
• Until you’re completely paper-less, it’s a good idea to have one place for paperwork, i.e., an inbox. Incoming items like meeting notes, business cards, bills and items to read should be placed in your inbox, rather than dumping them in a pile on your desk.
• It would be great if you had a trash can and shredder located at this designated “place” to avoid the build-up of unwanted paper (flyers, solicitations)
• Create and implement a simple filing system.
o The most important thing to remember is that whatever system you create should be practical to YOU.
o The key to an efficient system is your ability to find and retrieve your files quickly.
 It is imperative that you name/label your files so that you can easily find what you need when you need it.
• Keep your current project(s) and active file(s) in a vertical¬ desktop file holder or file drawer within easy reach.
• Schedule File Time:
o No one likes to file paper but, it is a necessary evil. Set a weekly appointment on your calendar to go through your inbox and process the items inside.
 Keep in mind your inbox is a holding spot that’s meant to be emptied. It’s not a file cabinet!

5. Master Calendar: Too many of us use several calendars, or sticky notes, and invariably lose information, dates, appointments and contacts in the madness.
• Decide on what calendar system best serves you and use it consistently. Remember there is no right or wrong way.
o When you find something that you like, use it for at least three weeks to see if it works for you.
 Whatever you choose, you must be willing to use it consistently.

Top Tips For Setting Up A Home Office

Crazy times! Welcome to the new normal, whatever that means. I guess we all have our own definition of what that means. It seems that everyone is doing what feels comfortable to them. There are, however, some things that we will all be seeing and experiencing at least for the near future. We will be all be wearing masks and/or face shields especially while shopping. Things that we never thought about, but did on a daily basis without thinking about, are no longer acceptable, ie. shaking hands. Elbow bumps or some other greeting like the “Vulcan Salute” (See Star Trek) will now be the new normal.

Many people will no longer be returning to an outside office, even if you were lucky enough to keep your job. Or, you may have an office to go to but may not be required to go there as often as you used to. As such, during the pandemic, many of us have had to set up a home office or at least a space in our home to get work done. Many of us will continue working from home permanently and will now have to create a space where we can work.

Wherever you live, no matter the size, I’m thinking it would be a great idea to create a space in your home so that you can get your work done efficiently. That can mean anything from paying your bills to writing a newsletter or working on a client project. Work comes in all shapes and sizes. But, I think we can all agree that a dedicated work space will make all the difference in the world.

Here’s some tips to set up your home office for maximum efficiency, productivity and success:

1. Make sure:
• It’s comfortable
• It’s functional
• Supplies are accessible

2. Use Technology:
• Make sure your computer has a good internet connection
• Set yourself up for virtual meetings
• Make sure your computer has a camera
• Adjust your background
• Use a phone that has good reception

3. Create a Workspace:
• If possible, utilize the door or partition to close yourself off from others in the house
• Set up a desk and filing cabinet
• Use a desktop file organizer so that whatever you’re working on is vertical (instead of in piles)
• Whenever possible, try to keep anything not work/office related out of that space.
• Your kids toys do not need to be in your work space

4. Keep a Schedule:
• Get up in the morning when you normally do (or did)
• Get to your “office” the same time each day
• Get dressed (not just from the waist up)
• When you look good, you feel good and it changes your mindset and confidence
• Take meal breaks
• Get out of your “office” and don’t eat at your desk

5. Set boundaries:
• Let others know that you are working.
• If necessary, put a “Do Not Disturb” sign on the door
• Start work at a specified time and end work, whenever possible, at a specified time
• Don’t get distracted by social media
• Check social media 3 x per day and set a limit for 5-10 minutes

6. Create systems:
• Filing
• Virtual and physical
• The two should mirror one another
• Follow up
• This is sooo important!
• To Do’s
• To keep yourself accountable

7. Communicate:
• Stay connected with colleagues
• Join or attend virtual networking groups
• Take time for education
• There are so many webinars, seminars and on-line training available

Top 5 Tips To Help You Deal With Paper

organize office and deskOne of the biggest organizing challenges for most people, at least those who hire us, is with paperwork. After doing this kind of work for 10 years, it seems that the common denominator is that most people don’t know what to do with paper. They don’t know where or how to file it or how long to keep it. As a result, people keep paperwork much longer than they need to. Then, when they run out of space, the overflow winds up in piles, in bags or boxes. 

 

The IRS has a paper retention guideline that you can use if you’re not sure whether you need a document or not. Here’s the link to their website: https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

 

The truth is, there’s only so many options when it comes to handling paper, “the right way”.  A filing system doesn’t need to be complicated.  It just needs to work for you. There is no right or wrong way. 

So, here’s a few tips to keep your paperwork under control and, hopefully organized. Disclaimer: These are a few examples-not a comprehensive list.

 

  1. TOSS:
  • Anything you don’t want or need
    • Solicitations, flyers, catalogues

 

  1. SHRED:
  • Documents that have your personal information (ie, an account number, birthdate, social security number, driver’s license number) 
    • Note: Your address does not count as that is available to the public
  • All credit card offers
  • Applications
  • Expired credit cards
  • Old checks from closed accounts

 

  1. ARCHIVE:
  • Anything that you need but don’t need access to currently
    • Old tax returns
    • Legal files that are closed/settled (ie, Divorce records)
    • Documents that pertain to the purchase or sale of property

Please refer to the link above to determine how long these documents need to be kept

 

  1. SCAN:
  • If you’re attempting to go paperless make sure you have a system so that you can find these documents when you need them
    • A good rule of thumb is to have your scanned documents filed on your computer the same way they are filed (labeled) in your physical file

 

     5.  SET UP ACTION FILES:

    • To Do: Papers that you need to make a call about. It could be a bill you’re disputing
    • To Pay: Bills that need to be paid
    • To Read: Articles of interest
    • Events: Tickets or invites
    • Follow up: Items that you are waiting for. For example, you already made a call and spoke to someone about an issue with a bill and now you’re waiting for a response.

 If you need some help, please give us a call.  We will help you implement a system tailored to your specific needs.

Tax Time Tips

  1. Gather all of your important papers in one place.
    • I use a bankers box for each year.  That way, when I can get rid of the papers for that year, which according to my CPA is 4 years, I can shred everything without going through it again.
    • Make sure to label the box (ie, 2019 Tax Documents) on all 4 sides so it’s easily identifiable
  1. Take out anything that is tax deductible to prepare your taxes. This information will be what you or your CPA uses to prepare your returns.  This varies depending on whether your filing as an individual or on behalf of a business.  Here’s a list of some items you’ll need:

Personal Information

Tax Identification Numbers are mandatory items on your tax prep checklist. All taxpayers will need the following information.

  •  Your social security number or tax ID number
  •  Your spouse’s full name and social security number or tax ID number

Dependent(s) Information

Parents and caregivers should gather this information as they review what they need to file their taxes.

  •  Dates of birth and social security numbers or tax ID numbers
  •  Childcare records (including the provider’s tax ID number) if applicable
  •  Income of other adults in your home
  •  Form 8332 showing that the child’s custodial parent is releasing their right to claim a child to you, the noncustodial parent (if applicable)

Sources of Income

Many of these forms won’t apply every year. For example, you will only receive the investment forms you may need to file your taxes if you had distributions or other activity.

  • Employed
    •  Forms W-2
  • Unemployed
    •  Unemployment, state tax refund (1099-G)
  • Self-Employed
    •  Forms 1099, Schedules K-1, income records to verify amounts not reported on 1099s
    •  Records of all expenses — check registers or credit card statements, and receipts
    •  Business-use asset information (cost, date placed in service, etc.) for depreciation
    •  Office in home information, if applicable
    •  Record of estimated tax payments made (Form 1040–ES)
  • Rental Income
    •  Records of income and expenses
    •  Rental asset information (cost, date placed in service, etc.) for depreciation
    •  Record of estimated tax payments made (Form 1040–ES)
  • Retirement Income
    •  Pension/IRA/annuity income (1099-R)
    •  Traditional IRA basis (i.e., amounts you contributed to the IRA that were already taxed)
    •  Social security/RRB income (1099-SSA, RRB-1099)
  • Savings & Investments or Dividends
    •  Interest, dividend income (1099-INT, 1099-OID, 1099-DIV)
    •  Income from sales of stock or other property (1099-B, 1099-S)
    •  Dates of acquisition and records of your cost or other basis in property you sold (if basis is not reported on 1099-B)
    •  Health Savings Account and long-term care reimbursements (1099-SA or 1099-LTC)
    •  Expenses related to your investments
    •  Record of estimated tax payments made (Form 1040–ES)
    •  Transactions involving cryptocurrency (Virtual currency)
  • Other Income & Losses
    •  Gambling income (W-2G or records showing income, as well as expense records)
    •  Jury duty records
    •  Hobby income and expenses
    •  Prizes and awards
    •  Trusts
    •  Royalty Income 1099–Misc.
    •  Any other 1099s received
    •  Record of alimony paid/received with ex-spouse’s name and SSN

Types of Deductions

The types of deductions you can take depend a lot on your life situation. It’s likely you won’t need all of the records listed below for your tax documents checklist.

  • Home Ownership
    •  Forms 1098 or other mortgage interest statements
    •  Real estate and personal property tax records
    •  Receipts for energy-saving home improvements (e.g., solar panels, solar water heater)
    •  All other 1098 series forms
  • Charitable Donations
    •  Cash amounts donated to houses of worship, schools, other charitable organizations
    •  Records of non-cash charitable donations
    •  Amounts of miles driven for charitable or medical purposes
  • Medical Expenses
    •  Amounts paid for healthcare insurance and to doctors, dentists, hospitals
  • Health Insurance
    •  Form 1095-A if you enrolled in an insurance plan through the Marketplace (Exchange)
  • Childcare Expenses
    •  Fees paid to a licensed day care center or family day care for care of an infant or preschooler
    •  Wages paid to a baby-sitter
      Don’t include expenses paid through a flexible spending account at work
  • Educational Expenses
    •  Forms 1098-T from educational institutions
    •  Receipts that itemize qualified educational expenses
    •  Records of any scholarships or fellowships you received
    •  Form 1098-E if you paid student loan interest
  • K-12 Educator Expenses
    •  Receipts for classroom expenses (for educators in grades K-12)
  • State & Local Taxes
    •  Amount of state/local income tax paid (other than wage withholding), or amount of state and local sales tax paid
    •  Invoice showing amount of vehicle sales tax paid
  • Retirement & Other Savings
    •  Form 5498-SA showing HSA contributions
    •  Form 5498 showing IRA contributions
    •  All other 5498 series forms (5498-QA, 5498-ESA)
  • Federally Declared Disaster
    •  City/county you lived/worked/had property in
    •  Records to support property losses (appraisal, clean up costs, etc.)
    •  Records of rebuilding/repair costs
    •  Insurance reimbursements/claims to be paid
    •  FEMA assistance information
    •  Check FEMA site to see if my county has been declared a federal disaster area
  1. Keep your tax return together with the backup documentation for 7 years. That means 7 years from the date of filing.   Keep in mind that we file the year after so if you file late, in October, then keep your records for 7 years from that date (ie., if you file October 2020 for the year 2019, keep your records until October 2027.

**NOTE:  NEVER throw out the actual “tax returns” unless you are already collecting Social Security.   Even though your CPA may advise you to keep your records for 4 or 7 years, PLEASE keep your tax returns. Why?  Because when you are ready to collect Social Security, the only proof you’ll have is your tax returns.  If there is a discrepancy in the amount that you’ll be receiving, the burden of proof is yours.  The Social Security Administration, The IRS and The FTB are NOT responsible to keep or have your information.  You are!   Therefore, IMO, better safe than sorry

Tax Preparation and Filing Systems. Good Times!

Seems like every article I’ve received for the last few months has been about tax preparation.  So as not to inundate everyone on my email list with yet another article about tax preparation, I chose to write about other things the past few months. However, now that “tax time” is over (for most of us), I thought it would be a good time to put this information out there. 

First of all, I don’t think I’ve ever met anyone who wouldn’t rather be doing anything else besides getting their taxes ready or “doing” their taxes.  I know, and I’m sure you know, a lot of people that have to scramble or spend many hours to pull their paperwork together to file their taxes year after year. So many people just can’t seem to get it together timely and have to file extensions even though we all know that every year on April 15th we have to file our taxes. 

Of course, there are extenuating circumstances and some do have to wait and file in October, but, for the rest, in my opinion, filing an extension just prolongs the agony of having to get this paperwork done.  

Think about this…What if it only took an hour every year to pull your tax documents together? Don’t you think that most people wouldn’t dread it as much? Of course nobody wants to give the government their hard-earned money BUT, I’m thinking it wouldn’t be such a dreadful task if it only took an hour to pull it together.  Truth be told, it should not take more than an hour to pull your tax documents together.   

Here are some suggestions as to how to make tax preparation and other paper challenges less daunting:

A.  If you don’t have a filing system, start one that is easy to use and maintain:

  • Think about what kind of system would work for you:
    • Alphabetical, Numerical, etc.

B.  Get all of your supplies together:

  • Files: make sure you have the right size files for your cabinet or container.
    • Decide if you will use interior files, hanging files, color coded files.
  • Labels: Use a label-maker or labels that you can print from your computer
    • Make sure to name the files correctly so that you can find what you’re looking for.

C.  If you already have a filing system but the papers are busting out of the filing cabinets, purge to make room for the current files:

  • Talk to your CPA to ask how long you need to keep your documents before tossing or shredding anything.

Putting a filing system into place isn’t that difficult. Moreover, once it’s done it’s done!  All you have to do is use it and maintain it.  If done right, it’s just that simple.  Then, whatever you need is there when you need it. No more wasted time looking for papers.   

If you don’t have the where-with-all to do this, CALL me.  I can and want to help. I started Organizing Concepts and Designs 9 years ago after spending 30 years in the Legal Industry as a Paralegal and Legal Assistant. I am familiar with the IRS Retention Guidelines and am well aware of what documents to keep, what documents can be tossed, which ones should be shredded and what needs to be archived (and for how long).  We can implement a filing system tailored to your needs.

Bottom line is…keeping your paperwork organized will save you a substantial amount of time and money.