Do you have an area on your desk or in your office where you just toss receipts and any business-related documents?
I know, I’m guilty of it occasionally. Today, I’m going to share with you the method I’ve found success as both an accountant and a small business owner.
I’m a sucker for pretty things, and my filing system is no exception. I made calligraphy (font, not handwritten!) labels to stick on envelopes that would fit 8.5″ x 11″ paper. Every month, I stick my receipts, bank statements, PayPal statements, canceled checks, etc. in the envelope.
Now you need to do something with the documents you’ve collected through the month. Set up a recurring date with yourself to spend an hour, or a couple hours recording your transactions on Excel, Quickbooks, FreshBooks, or whatever you use to do your bookkeeping. You can skip this step if you’ve hired a bookkeeper that takes care of this for you.
Once the year is over, you’ve sent in your tax return, and you’re ready to shred, shred, shred – DON’T! Hang onto everything for at least three years or longer.
Download the labels I used for the Avery 8161 labels (20 per sheet).
If you’ve got a different method that works for you, I’d love to hear about it! Leave me a note in the comments 🙂