Organizing documents is important for efficiency. Physical folders and electronic storage are popular methods. Sorting by alphabetical patterns or importance and discarding unnecessary files can help keep the system manageable. Tax documents should be kept for at least three years.
Document organization is an important aspect of running an efficient home or office. Important paperwork can become a burden when not stored properly; therefore, using one of the many different methods of organization can help keep your filing system running smoothly. Paper and electronic storage systems are the two most popular methods. Within each, there are many opportunities to sort by alphabetical patterns or by importance. In addition, there are some rules about how to get rid of documents that help keep any file organization system at a manageable level.
The more traditional method of organizing documents is using physical folders and files. This document management system allows for large amounts of documents and documents to be stored. Thick cardboard folders are filled with documents and placed inside a filing cabinet. Most file cabinets allow folders to be hung on a set of metal rails for quick movement and reorganization.
A more modern solution to keeping paperwork secure and available at all times is using computers. Whether documents are scanned and saved online or organization software is used helps to reduce clutter. Electronic document organization puts a digital replica of important documents online or on a hard drive so they can be quickly accessed later. This eliminates the need to store paper files, which can take up a lot of space in any home or office.
It doesn’t matter if documents are stored electronically or in physical form, there are a few different methods that can keep files from becoming a jumbled mess. Alphabetical sorting of electronic and physical files is a simple way to organize documents that make them available for quick retrieval. Organizing files by category is also useful because dividing paper and digital folders into “Car”, “Home”, “Tax” and various business categories increases efficiency. Another method is to divide the physical files by importance, so that if documents need to be removed in an emergency, the most needed parts are available quickly.
Discarding files is also a great method for organizing documents, as it prevents the collection of physical and electronic files from taking up too much space. A general rule of thumb is that all tax documents must be kept for at least three years. Keep complicated tax documents like audit information and documentation on your own for six years. Other items, however, must be kept forever, such as social security cards, birth certificates and marriage certificates.
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