Staying organized when it comes to your everyday bookkeeping or taxes is a must. It’s so difficult to know your numbers if everything is thrown into a shoebox or scattered between your office, car, purse or briefcase.
Here are 3 simple steps to create a system for your record keeping:
1. Make a binder with plastic sleeves in it and file your receipts monthly.
2. Have a tote or portable filing cabinet you can use for sorting once your monthly reconciliation is done.
3. Create a space in your office to store all your records.
Go to the dollar store or Staples and pick up plastic sleeves. Make sure they are colour-coded or have divider tabs on them. Get as many as you need to separate invoices, expenses, gas/auto, utilities and whatever else you need sections for based on your business. This will simplify things for your bookkeeper and make things easier to find when doing your monthly reconciliation.
Again, this doesn’t have to be an expensive thing. Totes and accordion folders can be found at Walmart or Staples. Label each section by month or quarter. This way you will know where everything is and whatever you need will be easily accessible at the drop of a hat.
By creating a specific space in your office where all your records go year after year, it will make it easier to access things at a later date. Maybe you are looking to get a loan or need to pull out a random record of a purchase, who knows what the circumstance may be but man, lost items can be such a pain in the butt. It is also helpful to have a designated place for all your records in case you are away or become incapacitated for some reason.
Remember, the system has to be something that is right for you and your business. You can create it and set it up to suit your needs; it’s whatever works for YOU.