Having an organized filing system will not only make your business run much more smoothly but also efficiently. The last thing you want is to be looking for specific files and you can’t locate them, not electronically or by paper. That would be a disaster that can cause much stress and embarrassment when working with your clients. An organized filing system of your receipts, invoices and financial statements is a key element for any business. Today we are talking 4th Quarter: How to Organize Your Filing Systems to Improve Efficiency.

Many people want to move to a paperless office and that may be possible but you still have to make sure your electronic files and both your paper files are well organized so that they can be easily found. This can be easy and will have you organized in no time.

How do I want to file?

When organizing the file system make sure to get all your employees’ input. If you have someone working specifically with billing and another individual working with inventory they most likely do not file their documents the same way. Ask them what works for them and what
can be easier for them. You want them to do their job stress-free and efficiently. You want them to be able to find what they are looking for while working their job but you want to find it as well if needed.

All filing systems are different and unique. Some may want to file their client or customer information by account number and others by the customer’s last name in alphabetical order. How do you want your filing system organized? What title – financial statements, invoices,
expenses, receipts, audit, advertising, and marketing, etc?

Invoices and receipts are important

Store your invoices and receipts in a way that they can be found for those that need them quickly for tax deductions and an audit. These can be scanned and imaged into the computer and saved electronically. Save them in a folder and also make sure to save them to a cloud, your hard drive, and external hard drive. That way you have an electronic and a paper copy.

Budget your filing system

When working on organizing your filing system it is important to know how much it will cost for your filing cabinets and other storage such as long-term storage for files that you need to save and keep for the future and don’t need right away at your fingertips. First figure out how you want to store your files, how you want to organize them, and what needs to be in long-term storage if needed.

Know your tax laws

When it comes to filing your paperwork it is important to know your tax laws. Why? This helps you know what documents you need and others you may be storing for safekeeping that you actually can get rid of to get rid of extra clutter and create some more space. Also, some documents such as receipts and bank statements can be scanned in and saved electronically
and via paper as well.

File labels
Lastly, your file labels should be easy to read so you and your staff can read them properly. Print off your file labels. They should be typed out written and clear. The last thing you want is a document stored in the wrong folder and you can not find it at all for an audit or client.

Want more?

Looking for more tax tips? Check out our post on Tips for Creating Organized Financial Statements