Five Important Tips for Closing Out 2008

As we begin a new year, it is important to close outneeded all your tax information is accessible in one
the previous year in an organized manner. This allowsfile box already divided by category. I've personally
you to get an organized start to the new as well asused this system for 2 years and have
preparing you for the upcoming tax season. Thisrecommended it to countless clients. This system has
article, written by professional organizer, Janetcut the clutter in my home significantly.
Nusbaum, shares five important tasks to complete to3. Organize your property records. Update your home
close out a calendar year.inventory, documenting any significant purchases with
"Get Organized" ranks in the Top 10 most popularphotos and receipts. Store in a safe place such as a
New Year Resolutions. If "Get Organized" ranks highsafe deposit box or fireproof safe. Better yet, store
on your list of goals for 2009, here are someit at a relative or friend's home in another city.
frequently overlooked, yet important things to help4. Update important legal documents. Review your
you get an organized start in the New Year.will, power of attorney, living will, etc., to make sure
1. Purge and clean out current and outdatedthat any changes in your personal situation (e.g.,
paperwork. Get rid of papers you've saved that youmarriage, divorce, birth or adoption of a child)
won't refer to again. (Tip: 95% of everything you'veproperly document your desired and current life
saved for over six months can probably be thrownsituation.
away.) Ask your accountant how long you should5. Update your list of account numbers and
retain old financial records. Accountants typicallypasswords. With the threat of identity theft on the
recommend that you retain old tax returns forever,rise, it is critical to be able to easily access all your
but supporting information can be destroyedaccount information when you need it. Include
between 4 and 7 years after the filing date. If younumbers for bank accounts, credit cards,
don't need an item for tax or legal reasons, considerinvestments, insurance policies, etc. You should also
whether it should be retained at all. Shred anythingupdate your list of important contacts including
containing account numbers or other information notattorney, insurance agent, investment broker, doctor,
meant for others to see. If you would like to receiveaccountant, etc. Give a copy of this list to a family
a copy of my Retention Guideline Tip Sheet, justmember or trusted friend or inform him/her of the
e-mail me and I'll send you a copy.location of this information in the event of an
2. Organize your financial records. Tax time isemergency.
approaching, so make sure your financial records areDo these tasks early in the year so you can get an
organized and easily accessible. Accordion case filesorganized start in the new year. Accomplishing these
are an excellent option for filing and containing alltasks also helps you get organized for tax season.
financial records pertaining to a tax year. When