Tax Paperwork: How store what you are keeping
You have completed the “rough sort”, gotten rid of the junk, and sorted your big pile into smaller ones. Now you are ready to put these into file folders
Fourth Step: Set Up File Folders
Tools: This week you are going to need the right tools to get the job done. Here is your shopping list.
- One color (manila works best) file folders.
- BOLD (possibly colored) markers.
- Hanging files for file drawers (cabinet or file box…either way you need a container).
- Use one color. Why? because you don’t want to get hung up on colors if you run out of one color. If you really like color coding files, buy BOLD color markers. Sharpie is making thinner tips in many colors. Pick up a pack.
Make Files
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Title files with names that are meaningful to you. There are no rules that you need use certain names.
- Don’t use numbers. instead or 2010 Taxes, say Taxes, 2101.
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Put your piles into the folders.
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Hang a group of hanging files in your container.
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Make TABS with BIG HEADINGS straight down the center. Don’t stagger the tabs. Arrange in alphabetical order.
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Make a second set of TABS with smaller headings for the sub categories and line them up straight down the right or left side.
- Why don’t you stagger the tabs? It is less jarring on the eye to keep them all lined up. Also, if you add a hanging file later it will mess up your stagger pattern and throw you in a tizzy.
- Why all these rules? It is proven over and over that labeling and using an alphabetical system us easier to use. Remember, you are setting this up to find things later. Make it as logical and simple to use.
OK, you are ready to tackle those taxes…but don’t call me for tax advice.
