Tax season is just winding down and after rifling through files, papers and receipts, you may be asking: What do I keep?  What do I toss?  If you’re in business, it really depends on what that particular scrap of paper is for:

• Are the records connected to an asset? 
• Mileage?
• Receipts?

If you’re like the rest of us and wish you had a better handle on record-keeping, then this reference guide from the IRS should help:  http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-long-should-I-keep-records  A good rule of thumb?  7 years is the standard.

Organizing Your Records:

Programs like QuickBooks make record-keeping a breeze.  However, if you still like to keep your records in file folders, try this system:

• Separate: Put your paperwork into 4 stacks:
  1. Bills to be Paid
  2. To Do/Read
  3. File
  4. Shred
• Action: Every time you retrieve the mail, put the piece in the corresponding folder and sit down weekly to sort through the stacks.
• Folders: Grab some folders with a Sharpie and start organizing your files alphabetically from Auto Insurance to Credit Cards to Warranties.  Put your paid bills in the corresponding folder when you sit down to pay your bills.  Any bills that aren’t due yet, simply put in the “Bills to be Paid” folder.

At the end of the year, you’ll have a neat stack of folders that can catalog your activity throughout the year.  When you’re done, you can have this file folder box scanned and stored for you and then shred the rest.