Organizing Your Budget for Tax Season

I love diving into clutter and transforming my clients’ spaces.  However, one job I don’t do is organizing budgets. Fortunately, for those budget-impaired clients, there is a profession that focuses on helping them organize and manage their budgets. Ed Jackson is a Daily Money Manager (DMM) and owner of Phoenix Consulting in Silver Spring, MD. I’ve invited Ed to tell us what a DMM does and how they help clients prepare for tax season.

1. What is a Daily Money Manager?
2. A DMM assists clients with bill paying, day-to-day banking, budgeting, insurance paperwork, and organizing records and receipts in preparation for income tax filing.
3. Who are your clients?
4. I work primarily with seniors, young and busy professionals.
5. How often and how long do you meet with your clients?
6. During an initial consultation, the frequency of visits is determined. A typical visit will generally not exceed one hour, but it varies for each client.
7. How do you help your clients get ready for tax season?
8. During the year I assist clients in maintaining a budget for income and expenses. An organized and efficient budget will allow me to assist the client in properly recording and maintaining important records needed for filing income taxes.
9. With only 6 weeks left until April 15, do you have any tips that could help us get our taxes done and out on time?

• Decide whether to file your taxes yourself via an online program or have a professional accountant do them for you. An online program should be easy to understand and use, and have excellent customer service.
• Make sure you have received all 2015 tax documents such as W-2s and 1099s.
• If you use a tax professional, contact them ASAP so you can provide your information to them for timely filing by April 15.
• If you wait too long, the tax professional may not be able to finish your taxes in time. An extension will need to be filed. In the event that you owe for the tax year, penalties and interest will be added daily to the unpaid tax after April 15.

1. Is it too late to hire a DMM to help with this year’s taxes? How can someone find a DMM?
2. No, but with only six weeks left, it is a good idea to find one ASAP. The American Association of Daily Money Managers has a DMM locator by zip code (or name if you happen to know the DMM’s name).

Thanks, Ed! Ed can be contacted at edwardj@phoenixconsultingllc.net or 301-219-2912.