Posts Tagged ‘Taxes’

Paper Filing

February 17, 2016

Last week I talked about setting up Action Files. These are the files which hold papers with which you will do something. You might file them, read them, respond to them, keep them available for easy reference. Whatever you do with these papers once you take action they leave the Action File holder and go …

That’s just it. Where do they go? Which papers do you keep? Those which you know you are over and done with get rid of right away otherwise they will just add to the pile and you will need to look at them once again. Only to find out that you didn’t need to bother. Will you need to look at them again (reference them)? Are they papers to keep but not to refer to? Will they help you with your taxes? How will you find them, if you need the information?

These are all questions I am asked by my clients.

If you are technologically inclined many papers can be scanned and saved in secure password protected folders in the clouds. These folders will still need to be organized and labeled appropriately so that you don’t waste time searching endless saved files. This will enable you to have access to this information from any computer provided you have the password!

Now, back to the papers.

I often get asked how to organize the files. My advice is to organize them in a way that makes sense to you. Some people like to file alphabetically, some by category, and some like to mix it up. There is no right way to file your papers. The important concept is that you are able to find what you’re looking for when you need it.

Organizing supplies to have on hand:

Manila folders, hanging files, a marker, and plastic tabs and/or a scanner

Label the Hanging file and the manila folder so that you will know exactly where to return the manila folder when you remove it from the file drawer.

Here are some basic categories:

  1. Let’s start with personal papers. I call these Vital Documents. These are papers which serve to prove your identity. You keep them forever. I advise keeping a copy at home in your file cabinet and the original in the bank. For the technologically inclined – scan these documents and keep them together in a folder in the cloud. Label them with something that will prompt you to remember the type documents the folder contains. Keep the original in a safe deposit box at the bank.

Here’s a short list, you may think of others:

Birth Certificate, Passport, Baptismal records, Marriage license, Divorce decree, Citizenship papers, Military records, Social Security numbers

2. Finances:

Keep the year end financial statements for 7 – 10 years in an archival box  (or scanned to the cloud)

    1. Keep the current year in an easy to reference file in your file drawer. You may have more than one file depending on how many accounts you have. Be sure to include any investment accounts, checking and savings, credit card information, any loan information, and retirement accounts. You might file these by category and then alphabetize the folders within the category. Just a thought!

3. Insurance:

    1. Sometimes the insurance is bundled. You may have one policy which covers a multitude of things. Be sure to keep the original policy and then add the updated rider when it comes in each year. Remember to remove and shred the past year’s rider so the file doesn’t contain stale information.

4. House:

  • List any service providers – name and contact informationAlso keep receipts for any expensive furniture or appliances or machinery – like a new HVAC unit.

 

Keep receipts for home improvements and repairs (make a copy of this for your tax file – some may be tax deductible)

  1. Keep an inventory of all your household furnishings and belongings here. (more about this next week)

5. Taxes:

  1. Keep tax returns forever in an archival box. Keep the supporting documents in an archival box for 7 – 10 years.
  2. Keep a folder in an easy to access file drawer labeled with the current year. Put any tax related information into it as it comes into your house. This way when it comes time to doing your taxes you have only to look in the one place.

 

This is just a few categories of files. You will probably have more as you continue sorting through your papers. If, when you were sorting, you created a pending or marinating file please remember to go back and take another look at those papers. As time has passed you may have figured out what your next step with those papers should be.

Let me know how your paper sorting is going and if this was helpful. I hope it was!

 

 

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Paper Piles

February 3, 2016

paper pile

Are you buried in paper piles? Do you know what’s in the stacks?

Perhaps you like to see the stack of papers as a reminder of something to take care of? Maybe it’s a group – a category – of papers that you want to have easy access to? Is there anything important or vital lurking in those piles? Could your missing passport, marriage license, social security card be hidden amongst these papers?

Do you lose track of what’s there? Maybe some things slip your mind or bills are left unpaid because they remain hidden in a pile? Does that ever happen to you?

I often hear from clients that they have a hard time knowing what to do with certain financial and legal documents. Which ones do they have to keep? How long should they keep them? Where should they keep them?

Other questions revolve around household receipts, user manuals, and medical receipts.

Since tax season will soon be upon us it’s time to start getting these papers organized so that you can easily get those taxes done and so that going forward you’ll know where to find your important documents, your bills, and your project notes or any other category of papers you may have!

This month I’ll be giving you some strategies and solutions to get on top of this paper work. I’ll tell you about some different ways to file your papers so that you can find what you need when you want it. No more wondering where on earth you put … and spending lots of time hunting through the stacks!

Let’s start by bringing all the paper piles from around your home into one central location. Decide where you want to work on these piles and bring all the piles to that place. If you have a large table or even a card table that you can put up as a sorting spot that would be terrific! This way you can be sure that you are dealing with all the paper. Now, don’t get the idea that you have to tackle all of this at once. We’re going to break it down into small manageable tasks so that you can really take control of the paper as it comes into your home. I’ll also be giving you some tips on how to maintain this sense of order.

Label the piles that you bring to your sorting place. You might label them by the location from which you removed them. For instance if the pile came from the kitchen label it ‘kitchen’. That might trigger you to remember what’s in the stack.

You will want to gather some supplies to this sorting spot. You may need some paper clips, post-it notes, a marking pen, manila file folders (these can be either colorful or plain), hanging files (these can be plain or colorful also), and a notebook binder or two. As time goes along you may decide you want other supplies but let’s start with these.

Knowing where to put papers you want to keep so that you can find them at a moment’s notice will give you a wonderful sense of accomplishment and peace of mind!

Small changes?

April 16, 2014

Sometimes a small change in the way we do things can have a really HUGE impact. One of my clients had the habit of waiting until April 14th to begin gathering the information needed to prepare his taxes. It would take him all day and most of the night of the 14th to gather everything together, figure out what he had to do, download the forms, etc. You get the idea, I’m sure. Maybe some of you do this very same thing.

Last year, we created a current tax year file. All tax related information went into the file. I encouraged my client to begin preparing his taxes on April 1st which he did. He was finished with his taxes very quickly as he didn’t have to hunt down any information. His taxes were mailed by the end of the first week – without having to lose any sleep! The small change of creating a central place for all tax related information really helped.

Another client was talking to me about doing laundry. For her, laundry is one of those things that just never seems to end – there’s always more to do. To complete the laundry cycle it must be washed, dried, folded, and put away. This client was good about the washed and dried part but emptying the drier, folding and getting the laundry put away was a problem.

In conversation, my client told me that she starts laundry in the evening and remembers to get it out of the washer and into the drier but quite often she forgets about it and then goes to bed. I suggested that she start the laundry in the morning after taking her child to school. This way she’s up and around the house. I also suggested she set a timer to remind herself to take the clothes out of the drier, fold them and put them away. This small change has really worked! Changing the time of day to do the laundry has helped to keep the piles of laundry under control.

What small change can you make in your day which may make a HUGE impact? Write me and let me know.