Are there any tricks or tips for handling bookkeeping without having a huge stack of papers pile up?

Question

With all of the papers for accounts payable, accounts receivable, statements, etc. how does one get to these documents in a quick and accurate manner? The stacks of papers seem to all just meld together sometimes.

Answer 1

You need to set up a filing system.

For your bank statements use a three hole punch to put holes in them and put them in a three ring binder. One binder per year.

You can keep a copy of the invoices/statements you send your customers in a three ring binder as well. I would organize this binder by months and then by alphabetical order.

For accounts payable, use one file folder. Open your bills and place them in the file with the return envelope paper clipped to the bill. You can paper clip your invoices and statements together. After you pay the bill file them in a file cabinet in alphabetical, adding each month to the back of the folder so they stay in order from the first month through the last month of the year.

Keep a three ring binder for all your taxes, payroll and sales taxes, etc.

Good luck!

Answer 2

Not less than once a week. This is the part of running a biz that I just hate. One thing you need to be doing is stamping the date on your incoming bills - that helps to remind you when they are due.

Answer 3

Process them before they pile up. Don't wait until you get a huge pile.