How to Manage Documents and Finances
Even the most organized people have to manage documents and finances a difficult task. You can reduce time and cost by putting your finances in order. It will also simplify tax filing.
It is important to create a system for storing your files, no matter if they are physical or digital. Start by putting all the documents you’ve got in one place. Check your kitchen counter, entryway table, home office desk garage, car trunk and anywhere else that papers accumulate. Throw away junk mail catalogs, expired coupons and bill inserts. Keep receipts and guidebooks for major purchases.
Sort your paper documents by category. For instance bank statements can be sorted based on date and then into folders for the various types of accounts, such as investments or credit cards. The organization by category helps to locate what you’re searching for when you need it. Consider subfolders if have several accounts, like “auto” and “home.” You can also arrange your files by year, which can be particularly helpful in tax season or audits.
Once you’ve categorized your documents and divided them into years, make certain to review and delete old files in accordance with legal retention guidelines. You should also backup your files regularly to prevent the risk of losing important data. Consider using a document management program when you share files with colleagues.
