How to Manage Documents and Finances

Manage Documents and Finances

The proper management of documents associated with transactions is crucial for verification of compliance, auditing, and recording. It also aids in the resolution of disputes accountability, future planning and dispute resolution. Documentation is also essential for regulatory compliance and to ensure that data is not lost or information is not stolen.

While some of these documents may be physically stored, many are now digitally stored to ensure security and ease of access. Some examples include investment documents receipts, receipts, major purchases, bank statements and bills, tax files life insurance policies and real estate deeds.

Create a filing system that is efficient and reflect the information you need and have. A structure for your folders that includes categories such as “Estate and Legal” Bank Accounts”, “Investments”, and “Utilities”, will be useful. Within each category you can subdivide further to help locate the specific document you’re looking to find quickly. It’s also recommended to remain consistent with file naming with abbreviations and key words that are easy to grasp for you or anyone else who may need to find a particular document. Date formatting using the YYYYYYMM-DD format is also recommended for ease of sorting and reference.

In addition to establishing a system of organization for your paper files, consider taking the next step to go digital and store your financial records in an online location in the cloud. This gives you more control over your documents, helps you stay organized and reduces the risk of misfiling or losing a document. Plus, digital storage offers more security than physical storage since thieves aren’t able to easily break into your computer.

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