The management of financial documents and documents is a daunting task even for the most organized people. Getting your financial house in Manage documents and finances order can save you time and money, making tax filing less stressful and ensure that your loved ones have access to important financial documents in the situation in the event of an emergency.
You must create a system for storing your files, whether they’re physical or digital. Start by putting all the documents you’ve got in one location. Examine your kitchen counter, entryway table, home office desk garage, car trunk and wherever else papers accumulate. Throw away junk mail, catalogs, and expired coupons. Keep receipts and product manuals for large purchases.
Next, sort your papers into categories. For example bank statements can be sorted according to date and then into folders for the various types of accounts, for example, investments or credit cards. The organization by category helps you find what you’re looking for when you need it. Consider using subfolders if you have multiple accounts, like “auto” and “home.” You can also sort your data by year, which is especially useful in tax time or audits.
After you’ve categorized your documents and divided them into years, be sure to go through and dispose of old files, following the legal guidelines for retention. You should also back up your files regularly to prevent the possibility of losing important data. If you’re sharing files with colleagues take a look at the use of a document management program to manage your entire process.
