Even the most organized people are able to find managing their finances and documents a difficult task. You can save time and money by keeping your finances in order. It will also make tax filing less stressful.
You must set up a system for the storage of your files, regardless of whether they’re physical or digital. Collect all your papers in one place. Check your kitchen counters, entryway tables and desks for home offices garages, car trunks and other places where you store papers. Discard junk mail catalogs, coupons, expired coupons and bill inserts. Keep receipts and product manuals for large purchases.
Sort your paper documents by categories. For instance bank statements can be sorted by date and then into folders for the various types of accounts, like credit or investment cards. Organizing your files by category will also make it easier to find the information you need when you require it. Consider using subfolders if have multiple accounts, for example “auto” and “home.” You can also sort your data by year, which can be especially helpful when it comes to tax time or audits.
Once you’ve categorized your paperwork and broken it into years, make sure to check and eliminate old files and follow the guidelines of the law regarding retention. It is also recommended to back up your files regularly to prevent the possibility of losing important data. Consider document management software for sharing files with coworkers.