A Great Bookkeeping Filing System

We have all heard of the shoebox accounting system where all of the receipts are put into a box and taken to the accountant or bookkeeper to be sorted and turned into financial statements or a tax return.

dreamstimefree_176878If you really want to save on professional bookkeeping fees (and your bookkeeper will appreciate it), here is a sure fire filing system to organize your business records.

Start With File Folders

Get a set of file folders to organize your receipts and invoices and label according to how you paid for them. That’s right: How you paid for them and not by the type of expense.

Here is how it works. Have one file folder for each bank account and another for each credit card account. If you pay some expenses personally, you’ll need another folder for those expenses. These folders are as follows:

  1. Bank A – Chequing
  2. Bank A – Credit Card
  3. Bank B – Credit Card
  4. Paid Cash or with Personal  Funds

Drop your receipts in the file for the account or method of payment.

You will need another group of folders labeled as follows:

  1. Unpaid bills (you have the bill but have not paid it)
  2. Statements (for your bank and credit card statements)
  3. Invoices / Sales (for copies of your invoices issued or sales receipts)

With this system, your bookkeeper can quickly assemble and enter your bookkeeping information and prepare your trial balance.

Repeat Monthly

Assuming you have your books done monthly, you will need to turn over the filing system to your bookkeeper. While he or she has the filing system, you will be without a filing system to keep you organized.

The second set of folders allows you be able to turn over your current filed to your bookkeeper and carry on staying organized. If your bookkeeper stores your files for you, you may even need a few more sets.

Have The Books Prepared Frequently

Part of your filing system includes actually having your bookkeeping done. The bookkeeper will rearrange your filing and reconcile your accounts. You should get a trial balance and other reporting that is essential to help you manage your business.

The report you receive back can then be filed into your permanent file system by month and year for quick retrieval along with the now sorted documents you provided.

Having the books prepared frequently will cost you less than bringing all your yearly records to your accountant, particularly during the busy tax season when you may actually be charged a premium!

Do You Have  A Different System

If you have a successful system that is efficient and works, feel free to share your story with others.

Dean C. Paley, Certified General Accountant is a Burlington based accounting firm that offers full service accounting firm that offers bookkeeping, QuickBooks consulting as well as personal and corporate taxes. If you are looking for bookkeeping help, give us a call at (289) 288-1206.

Dean Paley

A graduate of Simon Fraser University, Dean started and operated an independent painting company while perusing a degree at SFU. After graduating from Simon Fraser, Dean entered the Certified General Accountants Program of Professional studies where he obtained the professional CGA designation. After a number of successful years as the head of finance for the Canadian operations in a global financial services firm, Dean moved into a marketing role and established and launched a tax, estate and financial planning support department and service to advisors and clients. During this time Dean successfully obtained the Certified Financial Planner (CFP) designation. Dean has been a member of the Canadian Forces Reserve spanning three decades serving in the Royal Westminster Regiment (B.C.), the Military Police and later as a commissioned officer in the Cadet Instructors Cadre in Hamilton Ontario. Dean Paley CGA CFP has been interviewed and quoted in major media such as the National Post, Financial Post, Toronto Star, Canadian Business, Money Sense and Investment Executive. Dean is married to his lovely wife Deborah and has four lovely children.