I’ve been in business for 32 years and I rely heavily on my accountant at tax time. I’m not a bookeeper but I found that if I’m organized with my paperwork then that is half the battle. Of course I use Quickbooks but when my accountant asks a question and I need to find a receipt I don’t want to spend a day looking for it.
So even when I’m totally un-organized in every other part of my business I have always kept my financial paperwork in order. A few years ago I changed the way I keep my papers together. I used to use pocket folders in a file cabinet, one for each month but that was a hassel. So now I use a three ring binder with tabs to divide the 12 months and a clear pocket for each month’s receipts.
Here’s what you’ll need:
1. 3-hole Binder ( a nice big fat one )
2. 3-hole punch
3. 12 clear page protectors that open on the top. The type made for 3-hole binders.
4. 12 Tab dividers or sticky tabs to label each month
How it works:
At the beginning of each year put together your new binder with clear page protectors and dividers all labeled by month. The receipts go into the clear pockets each month. Your bank statements, or merchant statements are punched and place behind the receipts for that month. this way you have both receipts and statements all in the same place. It will be very easy to add new receipts. Never having to look for lost receipts again. A very simple, very easy system for keeping those important papers organized.
It can’t get any easier. Keep the binder at arms reach and make it easy to stay organized with your receipts. And your accountant will never complain about your financial paper organization again.