It’s Organize Your Files Week! and It’s Easy To Do
Organizing your files is easy. Do I hear groans? It may not be your favorite thing to do, but it is necessary to stay organized. You really only have to organize you files once a year, if you have a system set up already.
I think it is very appropriate to focus on your files this week. With the looming deadline for filing tax returns, you have finished the biggest paperwork project you do all year. So now that you have your files in order, you don’t have to worry about it for another 9 months or so.
Setting up a basic filing system is the first step to getting your paperwork organized and being able to maintain it over time. Years ago, I made this video on how to set up a basic system. You need to start with board categories and then break each of those categories down to sub categories. You should place active paperwork in a separate box from all your other paper work. Also old tax paperwork can live in a separate box.
It’s often difficult to know what paperwork you need to keep and for how long you need to keep it. You may be cautious and keep way more than needed. There are simple rules that you can follow if you are not sure what to keep and for how long. If you’d like to get Basic Organization’s Record Retention Guideline to help you know what to keep email me at email@example.com and I’ll send you one. By all means, if you have any questions about what you need to keep, please contact your accountant or tax professional.
Don’t forget, this is the time when a shredder is your best friend. It takes a little more time, but it is necessary to keep your financial identity safe. Let’s start organizing those files!