Control Finances and Documents
The management of documents that accompany financial transactions is crucial for ensuring compliance with auditing, record-keeping and dispute resolution, accountability and planning for the future. Documentation is also important for regulatory compliance and to ensure that data is not lost or information is not stolen.
While some of these documents might be physical, the majority are now digitally stored to ensure security and ease of access. Examples include investment papers receipts, receipts for major purchases, bank statements and bills, tax files, life insurance policies, and real estate deeds.
Set up a system for filing that is efficient and reflect the information you use and have. A organization structure that includes categories like “Estate and Legal”, “Bank Accounts”, “Investments” and “Utilities” can be useful. You can further subdivide each category to help you quickly find the document you’re looking for. It is also important to use abbreviations and keywords that are easily understood by you or anyone else searching for a specific document. To make it easy to sort documents, it is recommended to format dates in YYYY MM DD.
Think about storing your financial documents in a central cloud location. 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 because thieves aren’t able to easily break into your computer.
