setting up a record keeping system - university of...

h a n D o u t

Unit 5: Record Keeping and Taxes

Making Money Count | © 2012 University of Missouri Extension Handout 5-N.1

Setting Up a Record Keeping SystemWhenyousetupahomefilingsystem,keepinmindhowyouoperate.Areyougoodatkeepingupwith

yourfilingeachmonthordoyouneedaboxtoholdmaterialsneedingtobefiledbecauseyouprefertodothefilingonlyeverythirdmonth?Thebestsystemforyouisonethatfitsyourstyleof operationandonewhereyoucanfindimportantdocumentsquicklyandeasily.

Mosthomefilingsystemshavesomecharacteristicsincommon.

• Typicallyfileswillbeinalphabeticalorder.Itisthereforeimportanttothinkaboutyourheadingsaheadof time.

• Allowforflexibilityandexpansion.

• Keepyouractivefiles(thosethatyouneedtoconsultonaregularbasis)separatefromthosethatyouseldomconsultbutkeep“justincase”orfornostalgicreasons.

• Filesandrecordsyourefertoonaregularbasisshouldbekeptinthe“prime”storageareasuchasyourhomeofficeorbusinessarea.Filesyourarelyuse,your“inactivefiles,”canbestoredinyourbasementorattic.

• Listthecontentsontheoutsideof thebox.“Inactivefiles”mightincludetaxrecordsoverthreeyearsoldorthepaperworkonthelasthomeyouowned.Theinactivefileareamightalsobetheappropriateplaceforoldletters,reportcardsordrawingsdonebyyourchildren.

Belowisasuggestedhomefilingguide.Changeittofityourneeds.Thisisgivenonlyasastartingplace.Last,butnotleast,allfilingsystemsshouldhaveafileindexatthefrontthattellswhereinformationcanbefound,listingheadingsandthekindof informationtobefiledunderthatheading.

(continued on next page)

Making Money Count | © 2012 University of Missouri ExtensionHandout 5-N.2

File index:• Addresses,HolidayCardList

• Auto,(make/modelof auto)expenses,repairs,licenses,titleoneach

• Banking,CheckingAccount(orinstitutionname)

• Banking,SavingsAccount(orinstitutionname)

• Credit,AccountLists

• Credit,Contracts

• Credit,ReceiptsandBillsPaid

• CreditCards,(nameof card)contracts,notifications,monthlystatements,correspondence

• EducationalRecords,(nameof householdmember)

• EmploymentRecords,(nameof householdmember)

• Financial(year)goals,spendingplans,networthstatements,etc.

• HealthRecords,(nameof householdmember)

• HouseholdInventory

• Insurance,Autopolicies,correspondence,claims

• Insurance,Disabilitypolicies,correspondence,claims

• Insurance,Healthpolicies,correspondence,claims

• Insurance,Homeowner/Renterpolicies,correspondence,claims

• Insurance,Lifepolicies,correspondence,claims

• Insurance,PersonalLiabilitypolicies,correspondence,claims

• Inventories,SafeDepositBox

• Inventories,ValuablePapers

• InvestmentDocuments

• LegalDocuments

• LettersorCorrespondence

• Maintenance/Repairreceipts,bids,estimates

• Personal,(nameof householdmember)

• PersonalDirectory

• ProfessionalDirectory

• RealEstatePropertydeeds,lease,check-ininventory,rentalpolicies

• Receipts(majorpurchases)

• Retirement,(nameof householdmember)

• Services(plumber,electricians,etc.)

• Taxes,(year)

• WarrantiesandGuarantees(appliances,equipment,etc.)

Setting Up a Record Keeping System (continued)