Here is the most recent article for a new column I am writing for the St Croix Courier.
Whether you are managing and running a home or a business, paper management seems to be a problem with most people.
Is your idea of paper storage a pile of bags filled with bills, receipts and bank statements? Or are you using a paper management system that is the envy of all who know you? If you answered yes to the first question please read on, you need this information. If you answered yes to the second question, pat yourself on the back…I am sure that you are already enjoying the money you received from your income tax return and have your papers in order for the accountant for tax filing next year.
From an organization standpoint your accountant’s main job is to make the most of tax laws so you can save money. By having all of your tax information organized you are not wasting your advisor’s valuable time and your money sorting and organizing your paper.
The best time to prepare for taxes is the beginning of each year.
With tax season just behind us you probably have a good feel for what you need to do next year to be better prepared. For anyone who is just getting at it the best time is the present.
Excellent paper management will help you to organize your home office or your business. It will also keep you within legal and compliance requirements.
Set up a paper management system that works with your space and daily requirements.
A business owner would have more paper than a homeowner so keep that in mind when creating your system.
- Keep the day to day paper in your office, as well as the paper for the most recent year.
- Everything else can be labeled and put in envelopes or bankers boxes and stored in another location.
- Keep a good diary system so when the retention period for documents expires you can dispose of it, instead of it taking up valuable storage space. Follow Revenue Canada’s advise for retention of paperwork and you can free up valuable space by purging outdated information. Make sure to shred those documents that you are getting rid of; identity theft is nothing to laugh at.
Some suggestions for a paper management system:
- Binder with plastic sleeves for each category, this is portable, lightweight and can be kept anywhere
- Desk topper file organizer that can be kept on the kitchen counter top.
- Storage tote with hanging folders, doubles as a portable office(see the product of the month below)
- Filing cabinets with hanging files
Now that you have a system for the paper, take an afternoon and sort it. Gather all of the paper in to one space and deal with each item as it comes up. Use the principle of the three D’s.
- D-estroy it. By destroying we mean send it to recycling or shred it.
- D-eal with it. Give the item a home. Find a place where it makes sense to have this item. Does it need to be actioned or diarized for a future date?
- D-eligate it. Is it your responsibility to deal with this item? If it isn’t then pass it on to its rightful owner.
Remember to:
- Open mail daily and shred all garbage mail, file or task what is remaining immediately
- File everything flat not folded, it takes up less space
- Don’t leave the paperwork too long, it piles up quickly. Ten or 15 minutes every day is better than hours at a time once a month.
By organizing your paperwork today you will save money, time and definitely reduce stress when it comes to filing your income tax next year.