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Tax day can be stressful, but a little preparation goes a long way. Whether you're filing on your own or working with a tax professional, having the right documents ready can make the process smooth and hassle-free.

In this guide, we’ll cover:

• The essential personal information you need

• What documents to gather for income, deductions, and credits

• How long you should keep receipts for food, clothing, utilities, and rent

Let’s dive in!

Step 1: Gather Your Personal Information

Before you even think about numbers, make sure you have these details handy:

• Social Security Numbers (SSNs) for yourself, spouse, and dependents

• Date of birth for all individuals on the return

• Bank account and routing numbers (for direct deposit)

• Last year’s tax return (helpful for reference)

• Employer information (especially if you changed jobs)

Having these basics ready can prevent unnecessary delays when filing.

Step 2: Collect Your Income Documents

You’ll need to report all income sources. Be sure to gather:

•  W-2s from employers (traditional employment income)

• 1099 forms for freelance, contract, or gig work

• Interest and dividend statements (from banks, stocks, and investments)

• Retirement income statements (SSA-1099 for Social Security, 1099-R for pensions or IRA withdrawals)

• Rental property income and expenses (if applicable)

• Any additional earnings from side gigs, bonuses, or self-employment

Step 3: Deductions & Credits – What to Keep?

Deductions and tax credits can save you a significant amount of money. To take advantage of them, keep:

• Education expenses (tuition receipts, student loan interest, Form 1098-T)

• Medical expenses (if you plan to itemize)

• Mortgage interest & property tax payments (Form 1098

• Charitable donations (receipts for donations over $250)

• Childcare expenses (including provider’s EIN or SSN)

• Retirement contributions (IRA, 401(k), HSA contributions)

• Business expense receipts (for self-employed individuals)

Step 4: How Long Should You Keep Receipts?

One of the most common tax questions is: How long should I keep my receipts? Here’s a quick breakdown:

 Food Receipts – Keep for 3 years if they are for business meals or deductible expenses. Otherwise, no need to retain them.

Clothing Receipts – No retention required unless it’s for a work uniform or a deductible expense.

Household Utility Receipts – Keep for 1 year unless they are related to a home office deduction.

 Rent Payment Receipts – Retain for 3 years in case proof of residency is needed for tax or legal purposes.

For general tax-related documents, the IRS recommends keeping records for at least 3 years, and up to 7 years for cases involving audits or major financial changes.

Step 5: Final Tax Day Tips

Review your tax withholdings – If you owed taxes last year or got a large refund, consider adjusting your withholdings for a better balance next year.
Ensure all estimated tax payments are accounted for – If you’re self-employed, check that you’ve paid quarterly taxes correctly.
Check for state-specific requirements – Some states have different filing requirements and additional forms.

Preparing for tax day doesn’t have to be overwhelming. By keeping your personal information, income documents, and deduction receipts in order, you’ll make tax season much less stressful. Plus, understanding how long to keep receipts will help you stay organized for future filings.

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As a small business owner, setting financial goals is a cornerstone of your success. With the economy evolving and new challenges on the horizon, 2025 presents a unique opportunity to rethink how you approach your finances. Whether you're looking to grow your profits, improve cash flow, or streamline operations, setting clear, actionable financial goals can help you stay on track and achieve your vision.

Here’s a step-by-step guide to help you set financial goals for your business this year:

 1. Reflect on Last Year’s Performance

Before you can set goals for 2025, it’s essential to evaluate what worked (and what didn’t) in 2024.

• Review your financial statements: Look at your income statement, balance sheet, and cash flow statement.

• Analyze key metrics: Focus on profit margins, revenue growth, and expenses.

• Identify gaps: Did you overspend in certain areas? Were there revenue streams that outperformed others?

Pro Tip: Use this data to pinpoint opportunities for improvement or expansion.

 2. Define Specific and Measurable Goals

The best financial goals are specific, measurable, achievable, relevant, and time-bound (SMART). For example:

• Increase monthly revenue by 15% by Q3.

• Cut operating expenses by 10% over the next six months.

• Save $20,000 for a major equipment purchase by year-end.

Pro Tip: Avoid vague goals like "make more money" or "reduce costs" — specificity leads to results.

 3. Align Financial Goals with Your Business Vision

Your financial goals should support your broader business objectives.

• Want to expand into new markets? Set a savings goal to fund the expansion.

• Planning to hire staff? Build a budget to account for salaries, training, and onboarding.

Pro Tip: Prioritize goals that align with your long-term strategy to avoid spreading resources too thin.

 4. Break Goals into Actionable Steps

Big goals can feel overwhelming, so divide them into smaller, actionable tasks.

• Example Goal: Save $20,000 for new equipment.

• Step 1: Allocate $1,667 per month into a dedicated savings account.

• Step 2: Review current expenses to find areas to cut back.

• Step 3: Explore financing options to supplement savings if needed.

Pro Tip: Use financial tools or apps to track your progress and stay accountable.

5. Build a Budget That Supports Your Goals

A well-crafted budget ensures your goals remain achievable.

• Categorize expenses: Separate fixed costs (e.g., rent) from variable costs (e.g., marketing).

• Allocate funds: Ensure your spending aligns with your goals, like reducing unnecessary expenses or investing in growth.

• Monitor regularly: Review your budget monthly to adjust as needed.

Pro Tip: Consider using accounting software to streamline budgeting and forecasting.

6. Monitor Progress and Adjust as Needed

Business environments are unpredictable, so flexibility is key.

• Schedule regular check-ins: Review financial goals quarterly to stay on track.

• Adapt to changes: If unexpected challenges arise, adjust your goals without abandoning them entirely.

Pro Tip: Celebrate milestones along the way to keep your team motivated!

 Why Financial Goal-Setting Matters in 2025

This year brings opportunities for growth, but also challenges like fluctuating interest rates, evolving technologies, and changing consumer behavior. Setting financial goals helps you navigate these uncertainties with clarity and purpose.

By reflecting on past performance, creating actionable plans, and staying flexible, you can set yourself up for a financially successful 2025.

Need Help Reaching Your Goals?
As an experienced bookkeeper, I specialize in helping small businesses like yours create and achieve financial goals.I’m here to support your success.

 Contact ACE today to schedule a free consultation and take the first step toward a profitable 2025!