It's that Time Again - Part 3

The shredding company just came and picked up my year's supply of documents that need to be destroyed. It's a beautiful thing to be rid of stuff that you don't need anymore! Wow - what a load off your shoulders, no matter what it is, to give or throw stuff away and have less responsibility for "things". I LOVE using a shredding company - no more jammed shredders that can't keep up with the demand. 

So, back to that time again...When we were first married, I had a full-sized filing cabinet FILLED. I had every statement from the power company and each paystub for the last several years, for example. I had file folder after file folder for every payee. It was really ridiculous. I was dealing with paperwork from five years ago which made my life that much more complicated. I've found that RARELY do you need to go back and look something up for years passed. 

Here are a few tips that have helped me be and FEEL organized:

1. Instead of having a folder for each item (power bill, cell phone bill, city bill, mortgage statement, etc.), I have a folder for each quarter. Everything that was paid or pertains to that quarter is placed in that folder. Some categories have a yearly folder - medical receipts, report cards, car maintenance, bank statements, etc. Business expenses are the same way - quarterly folders for most things, yearly folders for some things. Those folders sit on my desk in a rack for easy access all year long. If I have to look back for something, it's right there, ready to go. Once the new year rolls around, all of those folders (already organized from putting things where they belong when they come in) go into a bucket that sits in my office for the next year. I also put the corresponding year's receipts, tax returns, check duplicates - anything that should be saved for record keeping. That way, if I need to get anything out for reference purposes, it is easily accessible.

Folders are easily accessible for use and organization through the year

Most of my 2010 info - ready to sit in a bucket in the closet until next year.

 2. Once next year rolls around, my 2010 bucket will go into long term storage in the deep, dark recesses of our basement under-the-stairs closet. I have six storage boxes down there. When a year ends, I find the oldest box (well, my son finds the oldest box), I dump it out for shredding (see intro), replace the contents with the 2010 bucket, relabel the box, and then my short term bucket is ready for 2011. I don't look through the box that I'm destroying. I just dump it. What am I going to need from 2003? If the IRS doesn't need it anymore, neither do I!!! Now, if for any reason I have to go down to my boxes that are out of sight, out of mind (there's the FEEL of organization that I love), everything is organized for a quick find. Luckily, this doesn't happen very often.

3. Like I talked about in part 2, receipts are sorted into envelopes and then kept for the year in big manila envelopes. If something needs to be returned, a receipt is more easily accessed if they're organized into months. The big envelopes are placed into my short term storage bucket. http://sticktoitcharts.blogspot.com/2011/01/its-that-time-again-part-2.html

Monthly receipts, organized into months and kept together for the year

4. QuickBooks and Quicken are my friends. I use these programs to categorize income and expenses for great reporting and budgeting. Look into using a financial organization program to make your life a little bit easier. Once this is completely updated for the year, we call our accountant and he does all his whiz-bang stuff and files our taxes for us. Through the year, I keep a folder of tax info for that year so it's all in one place. I scan the info for him and send him all the docs he needs. Once the taxes are completed and he send us our final packet, I scan our tax returns so that I have them on the computer in case we need them for a loan or whatever purpose might come up. That way I don't have to go down to outer-darkness to dig them up.

5. Taxes are such a beast then when it's all done, we got out to eat as a family for a "Completed Taxes Celebration". Looking forward to that one!

So, that's the gist of my financial organization. Right now, I'm in stage 4 - getting the financial programs completely up to date so we can get our numbers together. Oh, it feels good to get organized first thing in the year. Not only does it get last year squared away, but the new year gets off to the right start, too. Good luck with your tax preparations!

More to Come...but until then, Stick-to-it!