10 Most Common Filing Mistakes

I wanted to share a great article with you from Angela Sticca Snyder with My Accountant’s Office.  I have to admit that she is one of the most organized person, both personally and professional, I have met!  She is amazing and I wanted to share some of her great information.  Her contact information is at the bottom of the article…remember, tax season is upon us!

Let’s face it. No one really loves filing. But many people who hate filing are often doing things that make filing more painful than it needs to be. Here are 10 of the most common filing mistakes along with ways to make filing much easier! Avoiding these mistakes will go a long way to clearing your resistance to filing.

1. Overstuffing Files

If your filing drawers are overstuffed, I guarantee you will hate filing and you will probably suffer from lots of hang nails and paper cuts too.

 

 The solution:

1) Always have at least 6-10 inches of space available in your file cabinet or file crate. Make sure you can easily move and open each file with one hand and drop your paper in the file with the other hand.

2) Keep your files lean. A simple way to declutter your files is:

- Pick out your thickest files.

- Go through them and recycle as much as you can.

- Got a lot of files? Chunk out the task. Start with 3 or even just 1 file a day and before you know it, you will have an easy-to-use file drawer again.

 2. Mixing File Folder Colors Randomly or Using Too Many Colors

This generally just makes your files look messy (as shown above).

To get the most out of using color, I recommend establishing 5 – 6 master categories, such as Household, Financial, Health, Family, Career, Personal Interests, etc. Then assign each category a single color.

This gives your use of color meaning and helps you find your files faster and put them away more easily.

In this picture, the container is all medical files. The yellow files are medical records, and the green files are for the financial medical files related to two Financial Spending Accounts (FSAs).

Most people think they have to buy a different color for every category and then they’ll need to have a huge stock of different colors. Not necessary. Keep it Simple Silly ~ K.I.S.S.

Pick one or 2 favorite colors and use the same colors for everything. For example, in my personal files, I use Purple (the color of wealth) for client folders and financial files. I use bright yellow (the color of cheerfulness and mental stimulation) for most everything else. I also have some red folders that I use for very hot project or reference information. I use them sparingly so they stand out.

Using only one color you love is much better than using the no color that reminds everyone of being at work.

3. Not Using Color at All

This is just plain boring. No wonder you hate filing. People who use color meaningfully, and don’t overstuff the file drawers, are at least 3 times more likely to keep up with their filing.

 4. Too Many Folders

Some people set up a hanging folder and then put a regular interior folder inside every hanging folder. To me this is overkill for most home filing systems. There are times as you are using your system when you will want to subdivide a hanging file by adding a folder to it rather than creating a new hanging folder. But, there really is no need for folders inside hanging folders for the average filing system. I stopped doing this a few years ago and am so glad I did. It’s so much simpler and easier to maintain your filing system. And a lot fewer paper cuts! I spend a lot less time filing and it takes less than 20 seconds to add a new file. Plus I save money on the extra folders.

 5. Too Many Categories

Another way people complicate their filing systems is by using too many categories. This not only makes it harder to find the file you are looking for, it increases the risk of misfiling your paper. For example, rather than having a separate folder for every credit card and monthly utility bill, you could have one folder for all “Credit Card Statements” and one folder for “Utilities.” Utilities might include all non tax-deductible water bills, light bills, phone, cable,etc. Keep only 3-6 months worth unless they are tax-deductible.

6. Creating Hard to Read Labels

Many people create labels by hand using a pen or even worse, a pencil. This makes it very difficult to read your labels and for anyone else to help you keep up with filing. Of course you can use your computer to create labels. Avery has lots of templates set up to help you create labels easily.

If you prefer to hand write your labels, write neatly, and use a black Sharpie
on plain white filing labels.

Using 3.5 inch plastic tabs (as shown in picture) make it easier to write large and fit your whole title. This will give you best readability.

If you don’t want to use your computer to print out filing labels, invest in a label maker such as a P-touch system. P-Touch has an automatic setting for printing labels that are exactly 3.5 inches.

7. Using Company Names on Labels

Putting company names on labels instead of generic names like “Mortgage” can cause you extra maintenance work. When you use the company name, every time the company changes name or you refinance, or change companies, you have to change the folder label. If you just use telephone, cell phone, etc. your system will be much easier to maintain.

 8. Not Using Label Location and File Location Meaningfully

Many people stagger the tabs / label on hanging folders randomly. This makes it difficult find files and when you have to insert a new folder into your system, it gets all messed up! That’s why most experts recommend straight line tab locations as shown above. Just put all the plastic tabs to the right, center or to the left.

You can then use your label location to indicate a sub-category. For example, in my financial files, I have insurances to the left in a line. Monthly bills in the center and investments and retirement accounts to the right.

It makes it much easier to keep up with filing. I also keep all financial in one drawer and all personal, household and medical in another drawer. My business projects and reference files are in another drawer. Archives – in our den!

9. Shredding Too Much Paper

I’ve met people who shred every single paper that comes into their home. Shredding ALL paper is not necessary and just makes extra work. You only need to shred paper with critical information like credit card numbers, social security, etc. Just having your address on a piece of paper is not enough reason to shred it.

 10. Not Throwing Away the Envelopes Mail Comes in

Keeping you mail in its original envelopes makes your files extremely bulky, and makes it very difficult to find what you need. It also creates extra steps when paying bills. When you open your mail, toss everything but the items you need and file them in your Action File system. If it’s a bill, after paying the bill, lay it out flat, note the date you paid the bill on the bill itself, and then immediately file it into your financial filing system. Or even better, if you have access to the bill online, recycle it!.

 Thank you and as always, please consider Your Accountant’s Office, LLC your first choice in not only your Tax and Accounting needs, but also your Business Planning & Consulting.

 Angela Sticca Snyder

Your Accountant’s Office, LLC

Angela@YourAccountantsOffice.com

480-331-3316

January 11th is National Clean Off Your Desk Day!

Believe it or not, today is “National Clean Off Your Desk Day!”  I thought it would be timely to offer some tips and tricks to be able to do that.  Even better, hopefully these tips can help you corral all of the papers in your life for good.

 In order to accomplish this, you need to come up with an official paper management system to handle all of the incoming papers into your life.  If you are like the rest of us, there is way too much paper coming our way on a daily basis.  Once you put a simple process into place to help you decide how to handle all of these papers, maintaining it should be a snap.

 First, throw any paper that you don’t want or need into the recycling box. Get it out of your way at once.

 Second, create an area or an inbox that will handle everything that you have not looked at yet.  This includes the mail that you pick up, the papers that come home with the kids that need to be deciphered (not the papers that need a quick signature and placed back into their backpacks) and anything else that comes home with you.

 Third, avoid reviewing papers in your inbox.  Make a commitment to deal with it if you touch it.  Make it a habit to move it forward somehow, pass it along to someone else, file it or act on it.

 Fourth, for those stacks that are lying around the house or office, pull them into a square pile and make the commitment to sort through them.

• First, pull out all of the thick papers including phone books, magazines, etc and either put them away or throw them away.
• Sort the remaining papers into two piles: “Keep” and “Throw Away”
• Put the “Throw Away” pile in the trash can or recycling
• Now, go back through the “Keep” pile.  Can you throw away anything else?  Make sure to go through it a second time (or more) and you will realize that there really is not a lot that you really need to hang onto. 

 Finally, with all of the papers that are left, they will fall into one of two categories.  They are either “Active” papers or “Reference” papers.  Active papers are those that you need to touch on a regular basis. Reference papers do not require any action.  They just need to be available for future reference.  These could include medical records, taxes and projects that you have completed.

 Now that you have determined which stack they go into, keep your active papers handy.  Once they are broken down, then you can work on sub-dividing them.  I like to use the stair-step holders so that you can see the files in the back of the stack.

I hope that helps with some of those stacks of paper that are hanging around the house.  Remember, the quicker you can deal with a piece of paper, the less likely it is to become a pile somewhere in your house!

Happy Organizing!  Bridges

6 Tips On Filing Systems (Home & Computer)

Make Files Not Piles!

Here are a few quick tips to help you out with your filing system.  What is important to remember is to “make files and not piles” to manage your flow of paperwork!  To do this though, you need to maintain a routine purging system.  I know, that is a lot to have to worry about.  Here are a few tips!

1)  When it is possible, make your computer folders and files mirror your physical folders and files.

2)  Use file names that make sense to you.  You need to be able it find it later.

3)  Write out the file names and don’t abbreviate unless absolutely necessary (I like to use my label maker to label all of my files).

4)  No matter how organized you are and how good you are at keeping things filed,  if you never spend any time purging your file drawers they will become full.  When this happens you will start to pile.  In order to avoid it getting to that point, make time to purge your files regularly.

4)  If you create the same types of files regularly use a naming system so files that start the same way will all be grouped together.  Electronically that happens automatically, but it is nice when the paper files correspond.

5)  Starting folder/file names with a project name, client name or date can be helpful.

6)  Use a limited number of categories for your folders and subcategories when necessary (if any category is too large).

Happy Filing!  Bridges

Did you know…

National Clean Out Your Files Month!

Did you know that you only retrieve 80% of what you file?  Keep that in mind when you decide what you are going to keep and what you are going to throw away!

Also, stay tuned because October is National “Clean out your files month” and I will be providing lots of tips for your office and filing systems!  Please let me know if you have specific concerns or problems that you would like to have addressed!

Happy Filing!  Bridges

Cut Down On Junk Mail!

We all receive way too much junk mail that goes directly into the trash without hesitation.  As a way to green up the way that we live, try contacting the Direct Mailing Association to have your name removed.  You can contact them at 212.768.7277 or email them at http://www.dmaconsumers.org.

For credit card offers, you can contact 1-888-5-OPT-OUT or 1-888-567-8688 to have them quit sending you credit card offers.  Their recording will ask you for some information, including your social security number, so be prepared to give them the information.

And finally, to cancel some of the catalogs that you receive in the mail contact http://www.catalogchoice.org

I hope some of these contact help you with the clutter that you receive at the mailbox and help you go just a little greener!

Happy Organizing! Bridges

10 Ways to Reduce Paper Waste

We all know that we get overloaded with paper in our lives!  Here are some great tips to get organized and reduce some of this paper waste up front!

1.  Request electronic statements. Most businesses, including credit card companies, utilities, and loan companies offer electronic billing. Sign up and have your statement delivered to your bank, where you can review it online. Once the statement is paid, it’s rarely necessary to look at it again, and it’s available on-line if you need it.

2.  Pay bills online. The benefits of online bill pay are numerous, and you won’t need printed checks, envelopes, or stamps. Schedule payments at your convenience, day or night.

3.  Store documents in scanned form on your computer. You save paper and you don’t have to find a place to store them. When you file your taxes electronically at the end of the year, do you really need to print the 30 or 40 pages of your return? Save it on your computer and it’s there for reference if necessary. Scan and save legal documents like wills and contracts. If you need to send a copy to someone, it can be attached to email or copied to a thumb drive. Remember to keep a backup of saved files somewhere safe.

4.  Reduce junk mail. The average person gets pounds of paper in the mail that are neither wanted nor needed. Visit directmail.com or call 888-690-2252 to request that your name be removed from direct mail lists. The Federal Trade Commission has a consumer alert about opting out of credit card solicitations and notifying the major credit bureaus that your personal information is not to be shared.

5.  Say no to catalogs. Catalogchoice.org will communicate your mail preferences to more than 3,000 companies. Most catalog information is online, so there’s no need to have the printed material.

6.  Use cloth shopping bags. Always keep them in your car and use them for everything. You can avoid grocery bags, paper or plastic, department and drug store packaging, and even restaurant bags for take-out or leftovers. Cloth bags last a long time and can be washed when needed.

7.  Reuse packaging materials. More online shopping means receiving more goods by mail. Keep small boxes and packaging materials to reuse for holiday and gift mailings so new ones aren’t required.

8.  Stop using paper towels. Micro-fiber towels are versatile, washable, highly absorbent and useful cleaning tools. Paper towels are just not necessary.

9.  Reuse paper for notes or kids’ projects. If you must print things from time to time, never throw the paper away. Turn it over and cut into smaller pieces for notes. Use the back side for coloring or drawing projects.

10.  Set up a paper recycling container in your home. Try to recycle all possible paper goods to keep them from ending up in the landfill. If you don’t have curbside recycling where you live, visit earth911.com for a detailed list of recycling centers searchable by zip code.

Thank you suite101.com for these great tips this morning!

Happy Organizing!  Bridges