How to Organize a Filing System for Your Business
Houston Financial Strategies for Small Business
1. - Organize your documents. - With all your documents on hand, divide each one into a broad category,
such as accounts receivable and accounts payable. Your accounts receivable will be made up of any outstanding invoices owed to you by customers. Your accounts payable will be composed of invoices that your small business owes to vendors, suppliers, landlord, taxes, employee benefits and pay, accountant, utilities and any other bills you pay on a regular basis. Use two filing cabinets for each broad category: one exclusively for accounts receivable and one cabinet for accounts payable.
2. - Create a filing system. - Split the two broader categories of accounts receivable and accounts payable into subcategories. For instance, your accounts payable should be subdivided into date ranges such as less than 30 days, less than 45 days, less than 60 days and less than 90 days. This will allow you to readily identify which are prompt paying their invoices to your small business and which are not. Then subdivide your accounts payable. For instance, put employee related files into one subcategory such as pay, benefits, and personnel files and your utilities and lease into another. The last subcategory should be reserved for invoices payable to vendors and suppliers.
3. - Alphabetize your files. - Go through your subcategories and alphabetize the individual files. Alphabetizing is the simplest way to organize your small business files. You may elect to assign numbers to each as a way to identify each file by a customer number or vendor number. If you have an accountant, ask him what type of software he uses and how to coordinate naming and/or numbering your files so that is makes it easier to do the accounting for your small business.
4. - Maintain your business filing system. - Each day that you create for a customer or receive an invoice from a supplier, record it in your calendar or ledger, and then file the hard copy. When you pay an invoice from a vendor, pull the hard copy from the cabinet and attach a copy of the check or write down the check number or other payment method, date and amount. Likewise, when you receive payment from a customer, pull the hard copy from the accounts receivable cabinet and write down the date, amount, and payment method, then refile the hard copy.
Source: SmallBusiness
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
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