Here are a few tips to help you become prepared for next year’s tax time. Always start at the end…determine what expenses and sources of income you need to track: specifically, what categories will you need year-end amounts for?Start by pulling out the tax form Schedule “C” from last year if you have one. Go over the categories to see those which you use and those which you don’t. (By the way, the list of Expense Categories on the Settings Page of the Big E-Z System already reflects Schedule C categories). Make sure you account for each of those categories on the 2012 Big E-Z Bookkeeping system Settings Page.Now, think about which of those categories you will have receipts for and track your receipts with envelopes with the same category names . You may need to change the tax rate on the Deposits worksheet. Now is also the time to set up Cost Centers if you need to track both income and expenses for any given category. One example would be Rental Properties.If you have independent contractors or household help, and will need to issue a 1099-MISC for them, now is the time to set up columns with their names and addresses in the Subcategory section of the Checks worksheet. And if you follow a fiscal year instead of a calendar year, now is the time to re-name your periods. Lastly, enter in your beginning checkbook balance on the Checks worksheet and that is it! Order it today!
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