It is the end of the year and time to clean out your files so they are not packed full for next year.
1. Do one file at a time– go completely through it to decide what you need to toss, keep, shred. Make sure to go through every file you have.
2. If you do NOT write it off on your taxes you can toss/shred (confirm with your accounting professional.)
3. If you do need to keep it, you will need to keep for 3-7yrs for tax audits. Take everything out of the current file. Use an envelope or plastic bin to contain the papers. Mark them “2009”. Get a box and put the paperwork inside. Mark “2009” on the outside of the box. Put the box in the garage or somewhere away from your current filing system.
You should have empty or near empty file folders left. If you need a new folder made, this is the time to make it.
Doing this now will make next years filing SO much easier!