Get Your Financial House in Order Now

thFor the last few years I’ve shared an
annual tradition with you: getting financial records organized for year-end.

This entails gathering up receipts, identifying deductible expenses, updating your accounts, running reports, and possibly pre-paying some 2017 bills.  Whew!

Fight the Urge to Procrastinate

With all the responsibilities that vie for our attention this time of year, it’s easy to push aside the task of gathering, organizing, and updating financial records.  Don’t succumb!

Getting organized for year-end is an absolute necessity – especially for the sole practitioner.

Step 1: Get Started

If needed, begin with a little background reading from the experts:

General Tips on Tax Preparation

Tax Deductions FOR SOLOS AND HOME-BASED LAW PRACTICES

Step 2: Learn How to Organize Tax Records

Step 3:  Begin the Process by Chipping Away at Organization and Prep

I don’t recommend a marathon session of tax organization and prep.  The only time it makes sense to do this is if you’ve procrastinated and you’re up against a filing deadline. The point here is to avoid that.  It’s too stressful!  And as we all know: when you’re up against a deadline the odds of making a mistake rise exponentially.  Let’s not go there.

Instead, open your calendar and schedule some dates to start gathering and organizing records.  30 or 60 minute appointments will allow you to chip away and make progress:

First appointment

Assuming your accounts are reasonably up to date (income and expense entries are current), do a quick check. Does it make sense to pre-pay 2017 expenses [bar dues, professional liability coverage, rent] or contribute to your IRA/retirement fund? Make this assessment early to take advantage of 2016 deductions.

Second appointment

Prepare to organize your records.  Physically gather receipts.  If necessary, schedule follow-up appointments to finish the process.  If your records are digital, use this time to pull all receipts into one 2016 expense folder.  If you have unscanned receipts, catch up on your scanning.

Third appointment

If you are paper-based, label a manila envelope “Personal Expenses.” Start sorting your paper receipts.  For now, anything that is a personal expense goes into the “Personal Expenses” envelope to be dealt with later.  If your records are digital, create a file folder labeled “2016 Personal Expenses” and segregate personal receipts.  Once you’ve achieved this basic separation, start organizing your business expenses.  This can be done a variety of ways – see the reading above.  While date order is good, it is preferable to sort by expense category first, then by date.  If necessary, schedule follow-up appointments to finish the process.

Future appointments

You get the drift. Even the most robust procrastinator can generally commit to increments of 30 or 60 minute appointments.  Keep moving.  Anything you do helps advance the cause.

Step 4: Jumping Ahead to the CPA

If you already work with a CPA, hallelujah!  If your CPA is like mine, he or she will automatically send you a tax organization packet, which will go a long way toward helping with the steps above.

You Do your own taxes?

I know some of you are stubbornly independent, as I once was, and you prepare your own taxes, as I once did.  Please: at least contact a CPA for a ballpark estimate of what it would cost to delegate this task.  What can it hurt?  You can still prepare your own taxes if you prefer.

But my taxes are simple!

Kudos! Guess what?  The cost to prepare your return will be nominal.  If your taxes are complex, anything you pay a CPA will be well worth it.

I have used CPAs for business, personal, and trust-related tax preparation and have never been sorry I did.  The prep work is enough for me!  Try it at least once and see what you think.  I’ll bet you free admission to one of my future CLEs that you won’t go back to doing your own tax returns.  Select the Contact page on the menu above to take me up on this offer.

A Quick Thought About Apps

The tech-savvy among may you may be curious about apps, so here are two suggestions: 7 of the Best Apps to Scan, Track, & Manage Receipts and Best Free Finance Apps for the iPhone and iPad.  (The latter is my list of favorites.)

Parting Thoughts

Get started now by scheduling those appointments on your calendar!  I promise you that doing a bit here and there makes the process less overwhelming.  Good luck!

All Rights Reserved – Beverly Michaelis [2016]

My Desk, My Enemy

Desks are the pedestals of our productivity. How we organize the stuff on them has a big effect on how well or if we get things done in a timely fashion. But just as important as these practical concerns is the impact it has on our mental health.

While researching content for a presentation, I came across this older post: My Desk, My Enemy: 6 Helpful Ways to Get Organized.  Written by Dan Lukasik and published at Lawyers with Depression, it contains helpful information that remains relevant.

Organizational Style

Dan begins by describing the four organizational styles identified by Kelly Lynn Anders in her book, The Organized Lawyer:

Stackers organize by topic in stacks. They are visual and tactile and like to give the appearance of order. The busier these people are, the more stacks they have.

Spreaders are visual like stackers, but must be able to see everything they’re working on.

Free Spirits keep very few personal belongings around the work area. They like new ideas and keep reports, books, articles and magazines near.

Pack Rats have emotional ties to things. They like the feeling of fullness around them and like to tell stories about what’s in the office.

These categories are insightful, and describe a fair number of people I’ve worked with. But they fail to recognize what happens when a lawyer is depressed, depleted of energy, and has no motivation to get organized.  Dan calls this “the depressed desk:”

When a lawyer has depression, motivation and organization are BIG problems. A lack of energy blunts motivation. We already know that it’s a good idea to keep our desk together, but there simply isn’t much neurochemical juice to get it done….

We must outfox depression. It would have us do nothing. So we must do something. 

Dan’s Six Simple Solutions [Abbreviated]

  1. Get rid of all those pens. Only keep three or four.
  2. Take home any books that you don’t use on a regular basis. [I would add: do the same with magazines and legal periodicals. Create a “free spirit” space at home if this is your organizational style.]
  3. Hide cords – use twist-ties or coil your cords up.
  4. Only keep on your desk what you need for that day. Then section off your desk and workspace so that everything has a specific space.
  5. Have a dump day.  Pull everything out, put it in a big pile, sort, and toss.
  6. Schedule a date and time to clean your desk.

Read Dan’s original “six simple solutions” here.

Parting Thoughts

It’s easy to be skeptical of simple solutions.  How could tossing excess pens or hiding cords possibly help?  What difference does it make to clean off my desk?  

Trust me, it helps.

  • Eliminating clutter reduces stress and anxiety.
  • Organizing and prioritizing gives you back a sense of control.
  • Compartmentalizing allows you to plan for what you need to do and when.
  • Freeing up space allows you to breathe, think, and work.

You owe yourself, and you deserve, a pleasant work environment.

If you are a lawyer with depression, consider following Dan’s blog and connect with one of the confidential attorney counselors at the Oregon Attorney Assistance Program.

[All Rights Reserved 2016 Beverly Michaelis]

Getting a Grip on Digital Distraction

Last week I promised to continue sharing the “best of” tips from the inaugural Oregon State Bar Solo & Small Firm Conference. Today I’m featuring Paul J. Unger of Affinity Consulting who gave practical, easy-to-implement advice on how to tame the digital chaos.

A complete list of Paul’s tips can be found here.  A few of the best gems appear below:

Look for more content from the inaugural Solo & Small Firm Conference in future posts.

All Rights Reserved 2016 Beverly Michaelis

 

Get Organized by Visualizing Your Workflow

How can you be more productive?  One simple solution is to visualize your workflow by tracking to-dos and tasks in a way that keeps them front and center.

Kanban – inspired by lean and “just-in-time” manufacturing processes – is one way to get it done.  How can this work for lawyers?  Read this post to find out: How Lawyers Can Use Kanban to Visualize Workflow — NWSidebar.

Inspired to learn more?  Check out:

[All Rights Reserved 2016 Beverly Michaelis]

The New Year Offers a Fresh Start

If your goals for the new year include any of the following:

  • Reducing your stress leveldownload
  • Improving your office routines
  • Increasing productivity
  • Streamlining office systems
  • Balancing the demands of work and home

then resolve to get a head start.  Check out these classic posts on how to “spring clean” your office systems and work habits.

Feeling Overwhelmed?

If you’re an Oregon lawyer, you have a great resource right in your own backyard:  the Oregon Attorney Assistance Program.  The OAAP can give you guidance on how to develop your own stress management program using deep relaxation, meditation, time management, and other proven stress-reducing techniques.  Best of all, OAAP services are free and confidential.

Looking for Practice Management Advice?

We’re here to help! Professional Liability Fund Practice Management Advisors provide free and confidential assistance with office systems.  If you’re a lawyer in Oregon, give us a call!  800-452-1639 Toll-Free in Oregon or 503-639-6911.

Coming Soon – Turn Over a New Leaf through Better Client Management

Stay tuned next week for a new post: Turn Over a New Leaf Through Better Client Management.

All Rights Reserved – Beverly Michaelis [2016]