Managing documents and finances can be a difficult task for even the most organized of people. Getting your financial house in order can save you time and money, making tax filing less stressful, and ensure that your loved ones have access to vital financial documents in the situation of an emergency.
Whether you’re storing physical or digital files, you should set up an organization that is suitable for you. Put all your papers in one location. Look over your kitchen counters, entryway table, home office desk and garage, car trunk and everywhere else papers accumulate. Get rid of junk mail catalogs, coupons that are expired and bill inserts. Keep receipts and guides to products for major purchases.
Sort your paper documents according to category. Bank statements, for data room for startups instance, can be sorted according to the date of the statement, and then divided into folders according to the kind of account (such as credit card accounts). It is also helpful to organize your files by category, which helps you locate what you’re looking 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 useful when it comes to tax season or audits.
After you’ve categorized your paperwork and broken it into years, make sure to review and discard old files, based on the guidelines of the law regarding retention. Regularly back up your files to avoid the risk of losing vital data. Consider using document management software for sharing files with colleagues.