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Are you stresed by the mess ?

Your mess is probably losing you time and money as well as causing you stress. So there is no question that getting in control will make you feel better. By taking a systematic approach and breaking down this project into steps then you will attain all of these benefits that good records will give you :

• Create reports to help you make more money
• Prepare financial statements
• Keep track of reciepts and expenses
• Prepare your tax returns
• Be prepared in case of an audit
• Get financing

What you will need

1. Computerized accounting system
2. Scanner or physical filing system
3. Google Docs or any spreadhsheet with a sort function

Paper paper everywhere

The biggest problem is lots and lots of paper all over the place. So first you should get a big open place to sort those papers out. The following are some groups that I would suggest that will be helpful.

• Bank statements with cancelled checks
• Open bills
• Invoices to customers and clients
• Paid bills
• Correspondence
• Tax forms

Bank Statements

This should be entered in your accounting system then all filed away in one spot. Paid checks should be entered as well as deposits and then the statement should be reconcilled. Then in all probability these will not be accesed for a while as long as the accounting system has the information entered properly. However these should be kept for at least 3 - 6 years.

Open Bills

Open bills are bills not paid yet. If you plan on having an accrual based system then they should be entered into the acounting software. If you have a cash system then number the pages and enter the numbers into a spreadsheet with the vendor name in the second column and the amount due in the third column. If you are using a scanner create a folder for open bills and paid bills. Scan these items into the open bills folder and give it the same number as on the spreadsheet. When bills are paid drag them into the paid bills folder. If you are using a physical filing system then create two pandaflex folders for open and paid bills. As the bills are paid move them to the paid folder.

Invoices

If you have a computerized system then the physical invoices are a backup. File these in a file called invoices with your scanner or in a folder labeled invoices in your physical filing system.

Paid Bills

File these in a file already set up called "paid bills" with your scanner or in a folder labeled "paid bills" in your physical filing system.

Correspondence

Number pages and enter into spreadsheet with brief summary description in second column. File these in a file called correspondence with your scanner or in a folder labeled correspondence in your physical filing system.

Tax Forms

If you have an accountant they may tell you they have all the forms necessary and they do not need any then you can skip this step. Tax correspondence should always be saved. If you are saving them then number pages and enter into spreadsheet with brief summary description in second column. File these in a file called tax forms with your scanner or in a folder labeled tax forms in your physcal filing system.

Any questions ?

Then feel free to click on the chat or talk button on the upper left hand and perhaps Neil can give you some idea of how to organize those records.