Prepare tax documents

Preparing Tax Documents for Your Tax Advisor: How to Do it Right!

Hello everyone! Today we're tackling a topic that isn't necessarily fun, but is essential for self-employed individuals: preparing tax documents for your tax advisor. Yes, paperwork is part of the deal, but with a good system, it becomes much easier. So, grab a cup of tea and let's go through step by step how to efficiently organize your tax documents.

Why Good Preparation is Important

As self-employed individuals, we have many other priorities, but accounting and tax declarations are essential. Clean and complete preparation saves you time, nerves, and ultimately money, because your tax advisor will have less work to do. Furthermore, you stay within the legal framework and can deduct important expenses for tax purposes.

1. The Foundation: Regularity

Whether you run a small practice or a larger business, schedule regular time for your accounting. Whether it's once a month or weekly is up to you, but consistency is key. Don't put off the work!

Tip: Set a fixed day in your calendar to process all receipts and invoices. This prevents chaos at the end of the year.

2. The Right Organization

To keep track of everything, you need a system. Here are the basics:

Folders and Registers: Use dividers to sort your documents by month.

Tools: A hole punch, glue stick, and pen are often enough. For smaller receipts like cash register slips, it's best to stick them onto A4 sheets. This makes filing them later easier.

Digital or analog: If you work digitally, you can use a folder system on your computer. Scan all receipts and sort them by date. For analog systems, print out invoices and file them.

3. What Belongs in Tax Documents?

To make sure you don't forget anything, here's an overview of the most important points:

Operating expenses you can deduct:
Rent: Costs for your practice premises.
Insurance: Professional liability, health insurance, etc.
Office supplies: Pens, paper, printer cartridges, hole punch.
Consumables: Cleaning supplies, toilet paper, materials for your work.
Phone & Internet: Business communication costs.
Specialist literature: Books and magazines you need for your work.
Entertainment expenses: For business meals, including an entertainment receipt with attendee details.
Furniture & equipment: Desks, chairs, or decoration for your practice.
Equipment: Computers, cameras, or card payment devices.
Special considerations:
Logbook: For private and business trips. Consult your tax advisor on how much of this is deductible.
Income: Cash payments, card payments, or bank transfers.

4. Create an Income and Expense List

For small business owners, a simple income and expense list is usually sufficient. A table helps keep track. You can use Excel or another program.

The most important columns are:

Date of invoice
Receipt number
Income/Expenses
Purpose

Sort all entries by date. Income from cash payments or health insurance benefits can be recorded separately. Those who use a digital cash book often save a lot of time here.

5. How to Make Your Tax Advisor Happy

Once everything is prepared, you can submit your documents in a structured manner. Sort the receipts in chronological order from January to December and include overview lists that summarize income and expenses.

Important: Only business receipts belong in the folder for your tax advisor. Private expenses have no place here. You should keep a separate folder for those.

6. Additional Tips

Ask your tax advisor: Clarify exactly which documents they need. Every practice is different, and not everything needs to be submitted.

Observe retention periods: All tax-relevant documents must be kept for at least ten years.

Avoid follow-up questions: The cleaner your documents are, the fewer questions will come later from your tax advisor or the tax office.

Conclusion

With a clear system and regular organization, preparation for your tax advisor remains manageable. It takes a little time, but it pays off in the long run. And don't forget: your tax advisor is your professional for all tax matters – use their expertise!

Until next time,

Your Andrea 🌟