How I Set Up Bookkeeping Files Simply
Five files, a customer file and a supplier file. Here is the simple filing set-up I use, and why.
If someone has to keep asking you where a paper is, your filing is costing you time.
So here is how I keep it simple.
The 5 files for your finance records
- One file for bank statements, in date order.
- One file for cash records, in date order.
- One file for invoices, in date or number order.
- One file for bills, in alphabetic order and then date order.
- One file for credit cards, in date order.
A file for each customer
When I make an invoice, I make several copies. One for the customer, one for my bookkeeping file and one for my customer file.
The customer file holds any communication to and from the customer. It also holds the invoices and any other paperwork for that customer.
That way, I can always track my history with any particular customer.
If you call a customer and discuss anything, write it down and file it in that file. Any emails or letters, file a copy there too.
A file for each supplier
With suppliers, it is important to keep their bills in alphabetic and date order. I also file any correspondence with that supplier about the account.
That way again, I can track my history with any supplier.
If they ask for information or payment on a particular bill, it is easy to look up in my files.
If you do not have many transactions
If your transactions in a year are not enough for separate files, take one file and make subsections in it for the categories above. Label your files.
Why it matters more as you grow
If there is just you, you have pretty good control of your information, because you do it all yourself.
As you have more personnel, other people do part of the work. Sharing information then happens through good file keeping, so everyone concerned can find what they need.
Setting it up that way from the start can help you expand your business. It makes it easier for new people to come in and find all the information they need.
If there are no files, or not enough information in them, your personnel will constantly have to come and ask you for the missing data. That will not help you cut your workload!
Today, I would pick one file from the list and label it.
As always, keep it simple and... Flourish and Prosper
Lisa
P.S. If you are not sure your records tell the true story, ask me for my free Diagnostic Review, because I only take a read-only look at your QuickBooks and give you a plain-English report, so nothing in your books is touched.
