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One of the biggest organizing challenges for most people, at least those who hire us, is dealing with paperwork. After doing this kind of work for 15 years, it seems that the common denominator is that most people don’t know what to do with paper. They don’t know where or how to file it or how long to keep it. As a result, people keep paperwork much longer than they need to. Then, when they run out of space, the overflow winds up in piles, in bags or boxes.
A good filing system is fundamental to being able to find what you need when you need it. It doesn’t need to be complicated. It just needs to work for you. There is no cookie cutter way to set up a filing system and there is no right or wrong way. Everyone has different needs so a filing system should be tailored to your specific needs. The most important thing is that it should be organized in a way that is easy and makes sense to you.
Here’s some information that will help you purge what you have now so that you can make room for the current paperwork as well as how to set up a basic and functional filing system.
1. Before you start, I suggest getting all of your supplies ready.
If you’re starting from scratch, you’re going to need:
- A box of hanging file folders
- A box of third cut manila “interior” files
- I prefer that the interior file tabs are all either left hand flush or right hand flush as it looks cohesive
- A box of file labels or a label maker
2. The next step is to empty the cabinet completely. Yes, completely. Everything out. This is important as this allows you to see everything that was in there and help determine what should and should not go back. You can put everything into a bankers’ box while you’re going through your files.
ARCHIVE:
3. To create more space, archive documents that don’t need to be filed in arms reach:
- Archived files should be placed in a properly labeled Bankers Box. If you are storing these boxes in a basement or attic or offsite storage facility, you might consider buying airtight storage bins to protect your archived items from the elements. They cost more but it’s worth it if these documents are important and need the protection.
o Old tax records.
PLEASE NOTE: When the time comes and you need to file for Social Security benefits, you’ll need your prior tax returns if there are any issues with the amount you’re supposed to receive. Your tax returns are the only documents that will help you prove your income. The IRS, FTB, EDD will not have copies of your prior returns so it’s up to you to have the proper documentation should you need it. As such, I keep my tax returns (just the returns) indefinitely and get rid of the back-up documents (1099’s, 1098’s, 1095’s, receipts, etc.).
o Other Documents to keep but can be archived:
- Legal files that are closed/settled (i.e., Divorce records)
- Documents that pertain to the purchase or sale of property
- Birth Certificates, Death Certificates, Marriage Certificates
TOSS:
- Anything you don’t want or need
- Solicitations, flyers, catalogues
SHRED:
- Documents that have your personal information that you no longer need.
o An account number, birthdate, social security number, driver’s license number
Note: Your address does not count as that is available to the public
- All credit card offers
- Applications
- Expired credit cards
- Old checks from closed accounts
SCAN:
- If you’re attempting to go paperless make sure you have a system so that you can find these documents when you need them
- A good rule of thumb is to have your scanned documents filed on your computer the same way they are filed (labeled) in your physical files
SETTING UP A BASIC FILING SYSTEM:
4. There are many ways to categorize files, but what I think works best is to break things down into major category sections for easy identification. Here are a few suggestions:
- Financial
- Personal
- Household
- Legal
- Taxes
- Insurance
- Utilities
- Medical
- Active Files
5. Each section is then broken down into sub-categories which can be alphabetized. For example, under Active Files you might have the following sub-categories:
- To Do: Papers that you need to make a call about
- To Pay: Bills that need to be paid
- To Read: Articles of interest
- Events: Tickets or invites
- Follow up: Items that you are waiting for.
- For example, you already made a call and spoke to someone about an issue and now you’re waiting for a response.
6. Name your categories or sub-categories according to how you will look for them. Try, whenever possible, to use generic folder names. For example, Under Utilities, name the file “Telephone” rather than “Verizon”. This way, if you ever switch companies, you don’t have to create a whole new file. Simple, right?
- Avoid vague names for your files. For example, don’t name any file “miscellaneous”! Why? Because it will wind up being a catchall for all items.
7. Maintaining your filing system is just as important. If you don’t purge or archive periodically, it will be more difficult to continue filing or keeping your system up-to-date.
- Go through the contents of your files periodically (once a quarter).
- Set up new files at the beginning of each calendar year
- Store the old files from the prior year separately in a banker’s box properly labeled with the year on it.
- When the time for keeping these documents expires, you can simply take the entire box and shred the contents.
If you need some help, please give us a call. We will help you implement a system tailored to your specific needs. |
