I am a stickler for saving space. In our smaller home, space is a valuable commodity. So to save storage space, one place I often visit is my long-term file storage area. In this area, I store all my paperwork for taxes and other support papers. And, if I forget or am too busy to spend time doing this, I find that this area can get disorganized rather quickly. So, I make an effort each year to go through my long-term files. Recently, I decided to do just that and have documented all the tips/thoughts that went through my mind while doing this purging process. This post talks about Organizing Long Term Files for personal and business. I hope it helps you get inspired to get rid of your papers.
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Tips to Organize Personal long term paper files
Utility bills do not need to keep unless you need them for home office expenses.
You do not need to keep utility bills as long as they are paid, especially if you have online access to these accounts. Wait till you get the next bill before getting rid of them, though, just in case there are issues.
Get rid of pay stubs as long as you have the W-2s with your taxes.
At the end of each year, you do not need all your pay stubs since the totals show in your W-2. So, keep the last paystub of the year, and when the W-2 comes in, make sure your numbers match.
Keep your taxes in an accordion folder with all the other tax-related papers.
Read more here about HOW LONG TO KEEP TAX RETURN SUPPORTING PAPERWORK. The accordion folders below are from Amazon; feel free to buy them. (affiliate)
Reuse your manila folders.
Reuse USED manila folders by turning them inside out and using the unused inside tab to write the content. You can also use manila folder labels to cover the previous labels on the folders. Be sure to pick the right size for your manila folder tabs. They can vary from 2 inches to 5 inches. I found this item on Amazon. You can click on it and buy it there. (affiliate)
No hanging folders are necessary for long-term files.
Hanging folders are great for inside filing cabinets. They help when you want to subdivide a category. For instance, I have a hanging folder called "Utilities." Inside the hanging folder, I have all the household utility companies in manilla folders for easy access. At the end of the year, I pull the manilla folders and place them in long-term storage if I want to keep them.
Use one bin and have at least two to three (or more) years in it to save space.
It will be full, but it's just paper. -- Remember, space is valuable in any home, so fill them up. You can easily revisit these bins and remove unneeded papers after three years.
Use a clear bin and label the years on the front.
Clear containers help you see quickly what is in them. These bins below are a six-pack from Amazon (affiliate). Click through if you want to get more details.
Shred letters that make you sad or angry.
Keeping memorabilia is nice, but keeping things that bring back memories of sad or angry times should be removed. If you want to revisit these times, then feel free to keep the papers.
Shred ALL bills you don't want to keep!
If you like to print out your e-bills, maybe you want to rethink this process. Instead, store the digital copy in a folder marked "bills." When downloading the file, write the name of the bill and the month the bill is for as the filename.
Have an easy-faceted receipts accordion folder.
If you keep receipts, have a covered receipts accordion folder, so they don't fall out when you store them away. The items below are ones I found on Amazon (affiliate).
Tips to Organize Small Business Owners' long-term paper files
If you have a small business, this process is a little more complicated. Read below for additional tips to help keep your small business long-term papers organized.
Keep business invoices and business receipts/expenses as proof for your returns.
Never throw away invoices for your business. You can, however, have them as PDFs stored in a safe place on your computer. Don't use image files because if you ever have to print them, the printer will print them like a photo and use up a lot of your ink.
Keep your bank and credit card statements for your business.
Banks only store bank statements for a maximum of 3-6 months. So keeping a copy helps if you ever need to reference them.
Keep files for your business in a folder with a faceted top.
Keep your files for the business in an accordion folder with a lid so they can be easily accessible and will not get mixed with personal papers. If using an accordion folder, buy the ones with the cover. This lidded accordion folder will keep the documents in the box, and they won't get jostled around.
Keep your business paperwork separate from your personal paperwork.
Even if your business tax return is filed with your personal taxes, you should always keep the paperwork separated. It makes it easier and quicker to find the papers you are looking for instead of going through unnecessary ones.
Places to store your Organized Long Term Files
Now that you have all these files organized let's find a place to store them. There are several places in your home you can store these files. It should be a place that is not used often but accessible when you need to go in the file bins. Here are some places that may work for you.
Under the stairs is one good place for these files as long as they are in plastic bins to protect them from animals and water damage.
A closet is another good place to store these file bins. If you have them in sturdy plastic bins, you can stack them up.
A storage locker - This is a great option for small homes, apartments, or tiny homes. if you use a storage locker, it will need to be temperature controlled to protect the papers from damp temperatures. You will also need to pay a monthly fee for this space. Ensure the locker has a secure lock to protect your private information.
Visit our sister blog about the business organizing long-term file posts below.
How Long Should I Keep Business Records
7 Areas to Organize Office Files
Benefits and Tips to Revisit Paper Files Yearly
I hope this helps you get your long-term files organized. I was able to shred three bags of paperwork today. =) How many are you ready to destroy right now? Let's continue the conversation. Do you have any tips for organizing long-term paper files? Please leave a comment below.
Janet Schiesl
Great tips for such an overwhelming topic. It's even harder these days to manage when some things are paper and some are digital and it feels like opportunity for things to be doubled up or lost.
Julie Bestry
What a robust collection of advice. My favorite piece, though, has to be to get rid of papers that make you angry or sad. So many people hold onto such things out of a misplaced sense that throwing away a mean note or breakup letter absolves the writer of their unkindness. (Do hold onto anything that serves as legal proof of stalking or a violation of a restraining order; but you don't have to keep it where you can stumble across it. Box it up and send it to deepest storage!)
And I'm so glad you raised the issue of bank statements. Any institution that won't give you access to all of your data, in perpetuity, is requiring you to do the heavy lifting, so you may as well go digital. Great post!
Sabrina Quairoli
Great advice, Julie. Thanks for sharing and commenting.
katherinemacey
I agree with Julie on this one. Letting go of something that inspires negative emotions can be a great step toward healing from it!
Lisa Gessert
Excellent paper management tips Sabrina, I love my paper clients and teaching them these great ways of handling their papers.
Sabrina Quairoli
Thanks for stopping by and commenting, Lisa. =)
Janet Barclay
You've got a ton of information here; I can't believe that's only 14 tips! I especially like the one about re-using USED file folders. There are many better ways to spend money!
Seana Turner
I love that tip about turning manila folders inside out. We are in the process of sorting through some old paper (slowly!), and are keeping the used manila folders. I'll pass along this tip because it is really would make the files feel fresh and new if they were inside out.
Linda Samuels
All great tips. When I began using Quicken to manage our business and personal finances it helped me simplify the paperwork. Since finding receipts or income is easily searchable on Quicjen, I can now file receipts by year in one file instead of subdividing.
My rule for keeping records as per my accountant is to keep the basic backup material for 7 years from date of filing. The tax returns get kept permanently. So each year after taxes are filed, we get to shred the “expired” files.
Sue
How long are you supposed to keep statements, etc. for a small business?
How long for personal?
Sabrina
Thanks for leaving a comment. For IRS purposes, you need to be able to show your income, so keep your invoices with your bank statements. Keep these items till the business is non-existent. Businesses are different than individuals. Since statements are a summary of the invoices, you do not need to keep them if you don't want to. Check this out for more details. Hope this helps.
Sabrina
Sorry it took me so long to get back to you. Check with your accountant. They can help with this. Here is the link to the IRS page. https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-long-should-I-keep-records. For personal, I suggest to use the same time frame as the small business link above says that way you are covered. Good luck.
Meredith @ The Palette Muse
These are great tips. I always find that my short term storage becomes my long term storage before I know it. I need to go through the last few years' files and weed out all the stuff I don't need anymore. Thanks for the inspiration!
Pamela Chollet
Ohh Ohh I hate filing! I always wind up with 50 more sub-categories than I need. My biggest problem is I don't start what I finish because I get overwhelmed by the amount of paper. Right now, I'm debating about hiring a professional organizer to help with the sea of folders I've accumulated. I think I could burn down Rome with what I have in boxes.
Sabrina
Taking it small works best when you get overwhelmed easily. Also, try to keep your emotions out of it. Remember it is just paper. Before starting create a list of general categories you want to sort into. Then, when you go through the paper, if you see another category come about you can split out the exist smaller pile easily. I think it is a good idea to get help from a P.O. They can create an easier filing system to streamline your process which will help you maintain the system. Good luck!
Mina Joshi
I hate filing and end up having bills, receipts, letters etc. all over the place. Every so often - I have a tidy up and shred a lot of stuff but I really need to take a day off just to file stuff neatly.
Sabrina
Mina,
I like to shred while watching TV. It works great and I feel like I am not wasting time watching TV. =)
Marquita Herald
Excellent tips and I also am BIG on saving space, and saving as many trees as possible. I live on a small Island and am all too aware of our landfill and refuse issues so almost all of my documents are digital and I recycle everything I possibly can.
Sabrina
Great job Marquita! I have friends that live on an island and when we went to visit years ago, I learned a lot of ways to generate less waste, like cutting up a small tablecloth into small squares, sewing the ends so they don't fray and using the as cloth napkins for everyday. It worked well.
William Rusho
Great tips this week. This is something I truly need to implement in my life. My paperwork is all over the place, from drawers in my office, to my glove compartment in my car. Thank you for sharing this.
Sabrina
Thanks for stopping by William!
Beth Niebuhr
One big space saver that I can do right away is to get rid of those utility bills! Yay! I never even thought of that. I like the idea of using acordian files; great idea.
andleeb
I follow few of the tips that you have listed to organize files etc. I will try to follow more as I have recently moved to a small house and still I am struggling with organizing my files etc. I hope these tips will help me.
Lenie
i pretty well do as you listed other than the time of year. I keep a large manilla envelope for our taxes and as I clean up the files at the end of the year, I put all my tax information in the envelope - then I just need to add the Jan/Feb. stuff. Anything outdated and no longer needed gets shredded. Good suggestions.
Erica
Gosh, just reading about organizing for business makes me tense. I hate organizing. Having said that, you have some really good advice. I love your tip to shred letters that make you sad or angry. Such common sense, but so many of us hold on to things that hurt us. Ok, now that I'm thinking about this I think I'll go organize my receipt file for my business this year tomorrow!
Sabrina
Good for you Erica! That's wonderful. Paper management makes everyone so crazy. Think of it like a puzzle (it's challenging but not impossible), you just need to find the pieces that fit and then you are good to move on to something else. =)
Donna Janke
I already do most of this for organizing files, but I haven't always. I had a lot of my old papers and old papers from my parents (who've been dead more than 10 years). Over the past 2 years as we prepared to downsize, we sorted through and got rid of anything but the essentials. We took several boxes to a shredding company. We now make regular use of our own shredder. It's surprising how much paper there still is in what was to become a paperless society!
Sabrina
That's wonderful, Donna! I have both of my parent's estates papers and have been reducing a little at a time to 1 box each (I am keeping just the estate paperwork). I tend to be conservative so I wait 7 years to reduce their paperwork. Having downsizing as a goal makes it so much easier to get rid of stuff, especially paper. Great job.
Catarina
Since I already do what you suggest, Sabrina, I naturally believe your suggestions for organizing long term files are great.
Sabrina
Thanks for stopping by Catarina! Organizing long term files and not keeping too much is so important.