Control Financial Documents and Documents
The management of documents that accompany financial transactions is crucial for ensuring compliance, auditing, record keeping and dispute resolution, accountability and planning for the future. Proper documentation also plays a significant role in regulatory compliance and preventing loss of data or information.
Some of these documents are still physically stored, but the majority are now stored electronically to provide convenience and security. Some examples include investment documents as well as receipts and important purchases, bank statements, bills, tax files and life insurance policies.
The best method to organize the documents is to create an efficient filing system that is able to reflect the kinds of information that you use regularly. A folder structure with categories like “Estate and Legal”, “Bank Accounts”, “Investments” and “Utilities” can be beneficial. Within each category, you can further subdivide to help you locate the specific document you’re searching for quickly. It is also essential to use abbreviations and keywords that are understandable by you or anyone else seeking a specific piece of information. Date formatting using the YYYYYYMM-DD format is also recommended for easy sorting and reference.
In addition to establishing an organized system for your paper files, think about taking the extra step to make your documents digital and save your financial records in an centralized location in the cloud. This gives you greater control over your documents. It also helps you stay organized, and reduces the risk of omitting or losing a document. Furthermore, digital storage offers more security than physical storage, as thieves aren’t able to easily break into your computer.
