Simplified Filing for Your Small Business

So many of our clients have such complicated filing systems that they never find the time to maintain them and even avoid filing entirely. Instead of being able to locate a needed document easily, they spend time shuffling through mounds of random paper. This is not an efficient use of time.

Here's the problem: Oftentimes business owners create separate files for each vendor, customer, bank account, etc. Then they sort the file "types' alphabetically and end up with many folders with single pieces of paper and many others that are overflowing. When those files need to be cleared out periodically or archived, they either have to go through each file and purge the contents or start over from scratch.

Here's the solution: At Cybertary, we suggest to many of our small business owner clients that they simplify their filing system to something that is much easier to maintain. As long as your computerized bookkeeping is fairly current, you can find nearly everything you need by date. So why not create your filing system by date too!

• Accounts Payable: We like to use a monthly accordion folder. File each invoice according to the invoice date. Note invoice payment information on the face of it as you pay the invoice. You can always look up the payment history in QuickBooks.
• Accounts Receivable: Here is another great use for the monthly accordion folders. File each month's billing into the monthly folder. You can track the client's payment history in QuickBooks.
• Bank Deposits/Statements: File copies of client payments with the deposit receipt stapled to it in another accordion folder. Your monthly bank statements can also be filed with your deposit records. Many banks also offer to have your cancelled check copies digitally printed on your bank statements. If so, your banking accordion folder is your one-stop shop for all banking records.