Even the most organized people may find managing documents and finances a difficult task. You can cut down on time and money by putting your finances into order. It will also reduce stress when filing taxes.

If you’re looking to store digital or physical files you must set up a system that works for you. Begin by collecting all of your papers in one location. Examine your kitchen counter or entryway table, your home office desk, garage, car trunk and any other place where papers accumulate. Throw away junk mail, catalogs and expired coupons. Keep receipts and product guides for major purchases.

Sort your paper documents according to the category. For instance, bank statements can be sorted based on date and then into folders for every type of account, like credit or investment cards. Sorting your files according to categories can help you locate the information you require when you need it. If you have several accounts, like «auto» or «home» think about using subfolders. You can also sort them by the year. This is especially helpful when it comes to tax season and audits.

After you’ve classified your paperwork into years and then divided them, make sure to examine old files and remove them according to legal retention guidelines. It is also recommended to back up your files regularly to reduce the possibility of losing important data. If you’re sharing files with colleagues think about using document management software to centralize the entire process.

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