Control Finances and Documents
The management of documents that accompany transactions is essential for verification of compliance, auditing and record keeping. It also helps with dispute resolution accountability, future planning, and dispute resolution. Documentation is also an important role in keeping records in compliance with regulations and preventing loss of data or information.
Some of these documents are physical, but a lot are now stored electronically for convenience and security. Examples include investment papers receipts, important purchases and receipts bank statements, bills, tax files and life insurance policies.
The best way to organize these documents is to set up an efficient filing system that reflects the types of information that you use regularly. A organization structure that incorporates categories like «Estate and Legal» Bank Accounts», «Investments», and «Utilities» will prove useful. You can further subdivide each category so that you quickly find the document you are looking for. It is also important to use abbreviations and keywords that are easily understood by you or anyone else seeking a specific piece of information. To make it easy to sort documents it is advised to format dates in YYYY MM DD.
In addition to establishing an organized system for your paper documents, consider taking the next step to digitize and store your financial documents on an centralized location in the cloud. This gives you greater control over your documents. It also helps you stay organized and eliminates the risk of misfiling or losing a file. Furthermore, digital storage offers more security than physical storage because thieves can’t easily break into your computer.
