managing finances and documents can be a difficult task even for the most organized people. You can reduce time and cost by putting your finances in order. It will also simplify tax filing.
If you’re looking to store digital or physical files you should create a system that works for you. All your documents should be kept in one place. Look over your kitchen counters and entryway table office desk and car trunk, garage and wherever else papers collect. Discard junk mail, catalogs and expired coupons. Keep receipts and product manuals for major purchases.
The next step is to sort your paper documents into categories. For example, bank statements can be sorted based on date and then into folders for each type of account such as investments or credit cards. The organization of your files by category can help you locate the information you need when you need it. If you have several accounts, such as “auto” or “home” think about using subfolders. You can also sort them by the year. This is especially helpful in the event of audits and tax season.
After you’ve sorted your paperwork into years and then divided them, make sure to review old files and dispose of them according to the guidelines for legal retention. Regularly back up your files to reduce the risk of losing important data. If you’re sharing consequences of inaccurate financial statements your files with colleagues think about using document management software to centralize your entire process.
