5 Ways To Prepare for Next Year’s Taxes - Now

Taxes…just this single word alone is enough to make most people cringe. Why is that? Well, more often than not, that pesky little personality trait that we like to call PROCRASTINATION is the culprit. Yes, paying taxes isn’t fun financially but let’s be honest…the payment itself is not as stressful as the never-ending tasks of bookkeeping, organizing and filing. Well friends, we are here to help.


Good Ole Ben Frank had the right idea when he said that “Failing to prepare is preparing to fail.” With that in mind, the best way to start preparing for your next tax filing, is to start now! 2019 tax season has JUST come to a close. It should still be fresh in your mind. Let’s use that fresh experience and get set up for a smooth and easy 2020 tax season with these 5 ways you can prepare for next year’s tax filing, NOW!

1. Have A System In Place

Not all tax organization systems are created equal. What works for one person may not work for you. Whether you like to use the old-school receipts in a shoebox and a handwritten spread sheet method or have downloaded some fancy apps on your smartphone or computer….evaluate the system that you used this past year and decide if it should be replaced for this upcoming year.

A successful organization system will help to keep you from procrastinating your bookkeeping. The longer you put off filing receipts and/or checking them alongside your bank statements, the less memory you have regarding the purchases of those receipts. As your memory fades and as the receipts pile up, the process of keeping track becomes more stressful and time-consuming, once you actually sit down to chip away at it. Don’t let yourself get to that point! Set up a system that works for you, so that you can stay on top of it from the start of the season.

2. Check In With Your CPA

Many people choose to be in contact with their accountant only during the tax filing window and once the current year has been wrapped up, they drop off in communication until the next year. This can lead to last minute questions come April and may delay your tax completion. Staying on the same page as your CPA will only help with the smoothness of your tax process. Fill them in on your current system, check with them to see if they have suggestions and set yourself up for success. If you aren’t happy with your current accountant, this is also the perfect time to shop around for a better fit.

3. Evaluate Strategies For Tax Cuts

Feeling like you paid way too much in taxes this year? Now is the perfect time to set up a plan for reducing your payment next time around. This is a great topic of conversation to include in your check in with your CPA, who may have some suggestions for you. Perhaps this is a good year to purchase a car (small business owners will receive a tax cut for this) or to invest in some business equipment. Look to increase your write-offs. Look into re-evaluating your retirement plan or your investments. Waiting until the tax season has come to a close, doesn’t leave you any time to formulate a plan for tax cuts or more efficient uses of your money. Evaluate now!

4. Plan For Tax Payments

Did you opt for one singular payment at the end of the year? Did it feel too large? Want to break it up? If you are self-employed or have income that doesn’t have taxes withheld from it during the course of the year, you may want to consider paying quarterly. This will take some of the pain out of the end of year payment. It will also help to keep you stabilized and focused on maintaining your tax organization system year-round.

Having a bank account specifically designated to put money aside for tax payments, can be a helpful tool for saving. This will prevent payments from sneaking up on you and ensure that you aren’t over-spending any untaxed income that may come in throughout the year.

5. Create An Account on IRS.gov

While many people will wait until tax season to attempt navigation of the IRS.gov website, this is the time when the site is overwhelmed with traffic. The IRS website is a great resource for downloading current and past tax information, specific documents and tax refund tools. Create an account now (if you don’t already have one), to get yourself set up. Try to attain anything you may need or want from the site, months before tax season makes it into full swing.