If you haven't done so already, it's time to update your files to 2013.
I thought I'd share how I organize my finances electronically to avoid finding more space for paper files.
Here's how my Finances e-file looked a couple of days ago.
Note that I have 4 major files for every year: Book Orders, Invoices, Receipts, and Taxes.
I add the year (2012 in this case) to the names of the files because they're the same folders every year and I wouldn't be able to tell them apart in a search if they weren't differentiated somehow. (This took me a long time to figure out!)
When New Year Begins
1. When the New Year begins, I put all of the old files into the Archives.
The image at right shows where those 2012 folders are now. →
2. Then I create new folders for the New Year – using the same old categories. ↓
By using consistent folder names, I create a habit. I know what things are called when I go to look for them!
I Haven't Given Up on Paper
E-filing is my preference for a simplified workflow, but paper receipts are inevitable. Because I believe in making things easy, turning all paper receipts into e-documents is an unnecessary extra step for me.
I file all of my paper receipts and invoices for my business in an accordion folder by month.
This system has worked for me for years.
Steal from it what you think might work for your business or tell us your alternative method in a comment below.