The beginning of the year is the best time to clean out your files and have a clean slate for the upcoming year- but it is never too late. No more battle of the bulge when it comes to trying to file something. Here are some simple, easy to follow tips to get started on the right track.
Start with just one file.
Go through the entire file and decide what you need to keep and what you can shred. (Be sure to shred anything that has identifying information on it.)
Finish one file before you move on to the next.
When deciding what you need to keep ask yourself:
- Am I legally required to keep this?
- Was this used for tax purposes? - You should keep items that document your taxes for at least 4-7years. (Check with your accountant to verify.)
- Could this be easily re-created if needed?
- Will I actually use this or refer to it later?
- Is this a duplicate?
- What is the worst that could happen if I tossed this?
Create archive storage for anything that is 2009 or earlier. You want to have only the most current information in your active files so that you don’t need to weed through old material each time you are looking for something. Simply take out the old material. Place it in an envelope or box, date it and store away.
Shred anything that is old enough to be shredded. If you have previously stored material, check the dates for anything 4-7 years old that you no longer need to keep. Again, be sure to check with your accountant or financial adviser.
If you follow these simple steps at the beginning of each year, your files should stay current and easy to access.
