Setting up your Filing System

Supplies Needed:

• 3 separate colors
• File folder labels (ink jet or laser printer labels from Avery work best)
• Sticky file clips (find the real name for these 2 hole punched things)
• “ENTERED” stamp (only documents that have an entered stamp on them should be put into the filing cabinet.

1. Create a template for what your customer files should look like - it’s much easier to start out the way you intend to proceed. Create one file that’s your “PERFECT CLIENT FILE” and then mimic them all after this one file. Do you need a checklist on the front page? What documents need to be in each file? Has all of the contact information been entered into your data base, contact system, and then transferred to your accounting system?

2. Customer Files - choose one file folder color for your customers start setting up your customer files based on the template you set up in step 1

3. Vendor files - create one folder for each supplier or subcontractor. This includes utility companies, and city taxes for example. As a general rule, if you have more than 3 pieces of paper for this company each year you can create a file folder to hold the receipts. As the year progresses & you need to reference documents you’ll find this step to be very helpful. On the labels make sure you note which fiscal year these files pertain to. For example, the file folder may look like this: TELUS COMMUNICATIONS - FY09
4. Current Accounts Payables (or UNPAID BILLS) - Keep a separate folder that holds any unpaid bills. As soon as you’ve written the cheque, paid by credit card or transferred funds then transfer them into the vendor folders . Remember that they’re in this file when searching for current documents.

5. To Be Entered - this should include your most current receipts that still need to be entered into your accounting software. Once marked with an entered stamp, simply file them in the appropriate vendor file folder. In some cases they may be placed into a “to be filed” folder if you have an administrative person who files documents at a later date.

6. Government & Banking - Keep another section and color for banking and government related documents. These often need to be held beyond the current fiscal year & won’t be packed into long term storage as quickly.

7. Employees & Payroll - Keep your payroll and employee information in a separate and secure location. Not with the information that your other employees can access while serving your clients need & the relationships with your vendors. These files should also be labelled with the calendar year, and look something like this: JOHN SMITH - 2009

8. Long term Storage - At the end of a year (or if your company is still small enough to store only in a filing box) move your documents to a bankers box, write clearly on at least 3 sides this information: Company Name, Fiscal Year, and these words, “DESTROY AFTER XXXX” (fill in the year that the box can be destroyed. In Canada you must store them for an additional 6 years. Check with your government regulations to be sure.

For other articles by Loralee Hutton go to her company website at www.red2black.ca