Even the most organized individuals may find managing finances and documents a difficult task. Making sure your financial house is organized can save you time and money, making tax filing less stressful and ensure that your loved family members have access to crucial financial documents in the case of an emergency.
You must create a system for the storage of your files, regardless of whether they are physical or digital. Gather all your papers in one place. Examine your kitchen counter and entryway table office desk and car trunk, garage and wherever else papers accumulate. Discard junk mail, catalogs and expired coupons. Keep receipts and product guides for major purchases.
Sort your paper documents according to the category. Bank statements, for example can be organized by date, and then classified into folders based on the type of account (such as credit card accounts). The organization by category helps you find what you’re looking for when you require it. Consider subfolders if have multiple accounts, for example “auto” and “home.” You can also organize your files by year, which is especially useful in tax season or audits.
Once you’ve categorized your paperwork and divided it into years, make sure to go through and dispose of old files, based on the guidelines for legal retention. It is also recommended to back up your files regularly to reduce the possibility of losing important information. If you’re sharing files with colleagues Consider using document management software to centralize the entire process.