I Asked ChatGPT the Best Way To Organize My Documents Before Meeting With My CPA
Written by
Kathryn Jackson
Edited by
Jenna Klaverweiden
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Even though it may be tempting, dumping a hodgepodge of financial and tax data in your CPA’s lap isn’t doing you any favors.
CPAs work faster and more accurately when tax documents are logically organized and nothing is missing. A little preparation on your end can make things easier for you and your CPA.
Also see six money hacks to make doing your taxes easier.
Create Labels
ChatGPT suggested that you start by creating the following labels when setting up digital or paper folders:
- Income
- Expenses and deductions
- Investments
- Retirement accounts
- Property and assets
- Taxes from last year
- Business (if applicable).
Next, you’ll want to sort your documents into the correct folders. Inside each folder, keep the same types of documents together, such as W-2s in one group and receipts in another, to make them easier to find.
Ensure All Income Records Are Present
Missing items can cause delays with your CPA.
Be sure to have all sources of income besides your paycheck, per ChatGPT. Examples of income documents include W-2s, 1099s, Social Security or pension statements, rental property income records, and brokerage income summaries.
Organize Documentation for Deductions
ChatGPT recommended sticking to deductions you can document and to organize the receipts by date for easier review.
It recommended including all of the following:
- Mortgage interest (1098)
- Property taxes paid
- Medical expenses
- Charitable donations (receipts)
- Education costs (1098-T)
- Childcare expenses
- State and local taxes paid.
If you’re self-employed, don’t forget to submit any mileage logs, as well as receipts for supplies and equipment.
Digitizing your receipts is one of the easiest ways to stay organized, per Fine Point Consulting. Scan and file receipts and other paper documents into clearly labeled cloud or computer folders so they’re simple to find and send to your accountant.
Separate Business and Personal Records
To avoid confusion, business records should be separated from personal ones. According to ChatGPT, these records should be included:
- Business income reports
- Expense logs
- Mileage logs
- Equipment purchases
- Home office details
- Prior depreciation schedules.
Mixing business and personal records can also create tax trouble. It increases the chance of filing errors and can raise red flags with the IRS or state tax agencies, per Kirsch CPA Group.
Include Last Year’s Tax Return
Give your CPA your prior-year tax return with all attached forms to limit follow-up questions, per ChatGPT.
For example, a prior year’s tax return can include information about carryovers that need to be included in the current year’s return.
Add a Summary Sheet
ChatGPT also recommended creating a one-page summary sheet that lists the following information:
- Major life changes (moved, married, divorced, new child)
- New job or business started
- Large purchases or sales
- Big medical events
- Estimated payments made.
All of the above variables can affect your filing status, deductions, credits and tax obligations and will give the CPA an overview of your situation before fully reviewing your tax return.
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