Tax Day 2007 — not to mention the accompanying headache and heartburn — is still three months away. Why, then, would anyone want to start thinking about Tax Day 2008?

“It’s kind of like planting a garden,” said Eugene Braam, a certified public accountant working in Mankato.

Starting tax planning with the new year makes a taxpayer better prepared for that far-off Tax Day. That taxpayer also has a head start on finding tax benefits and avoiding penalties.

Or, in other words, plant now and reap the rewards later.

So, why not make a New Year’s resolution to prepare better for tax season 2008?

This is a two-part resolution: one, to keep better records; and two, to plan ahead.

Julie Swanson, another Mankato CPA, said detailed record-keeping — starting the first of the year — is key to saving on taxes.

“My experience is you can really increase deductions,” Swanson said.

Find a system that works

Gathering a year’s worth of bills, receipts, pay stubs and other tax documents can be a great source of frustration come tax time. A good record-keeping system can make that entire process much easier.

Chuck Morken, a CPA with Mankato-based Morken Morken & Co., said his solution is to make all his transactions through one checking account. When April rolls around, most of the tax information he needs is in his check register.

“Review what went through your checkbook and that will give you most of the information on your tax return,” Morken said. “... It helps you make sure you report all your income, and that you report the correct amount.”

Swanson suggested keeping a calendar and recording expenses from business purchases or mileage that could be deductible.

“If you don’t keep good notes, you forget,” she said.

Swanson said she keeps a tax file at home with different sections for business expenses or charitable donations, for example. Bills, receipts and other tax documents could also be filed away.