In a world of 'the paperless office', files and folders should be obsolete. Every business needs to learn "how-to" manage records and organize documents. Small business owners are too afraid to throw anything away. Consequently, this leads to an overload of file folders, storage boxes, and ultimately a paper avalanche.

When faced with the dilemma of what to toss out and what to keep, business owners panic and keep it all. Years pass, until one day the storage room has overflowed. Documents are now lost in the massive piles around the office. Management has the dilemma of organizing paperwork to prevent low productivity and direct failure of the business.

Many smaller companies simply do not deal with their paperwork issues until it is really too late to stem the tide. The paperwork just seems to mount making documents and important information difficult, if not impossible, to find. Paperwork would rarely become lost if management fulfilled its responsibility and adhered to better time management strategies.

First Step to Organizing

Start by declaring an office cleanup day. All employees should pitch in and help organize any and all paperwork in the office. If at all possible schedule this on a day that you're normally closed to avoid any distractions. Paying your staff overtime for one day will be well worth it once you see the results.

Even if you work alone dedicate some time to cleaning up your office and your paperwork. Even though it may seem difficult to take time out now it will be worth it in the long run.

Tackle the paperwork on your desk first. Sort by subject, then sort by dates. Once everything is sorted, create file folders for each subject. Place paperwork neatly into the appropriate file folder and set aside, but don't forget about it.

Next, locate income statements, expense receipts, and sort them accordingly. Your accounting should be a priority. Record transactions into an accounting system or ledger until you're current. If you're like me, you could spend the majority of your day just entering transactions. Instead, end at a time that you can easily pickup from.

Now you'll need to find a place for your file folders. Place anything you may need in the near future in a filing cabinet that you can easily access. For other paperwork you can simply place them in crates or boxes and put them away for safekeeping. Be sure to clearly label when each box contains. You may even want to enter their contents into spreadsheets.

Computer Documents

You need a contingency plan for all your paperwork and electronic files. If there was ever a flood or fire and your documents were destroyed you need to have a backup plan. For your important paperwork consider getting a scanner and filing backups electronically.

Always keep extra copies of your computer documents and files in a fire resistance safe at another location. Files can be stored on backup tapes, floppy disks, CD ROMs, or external hard drives. Be sure to keep a log of what files you have stored where.

You may want to consider an automated backup service for your financial files and records. For a reasonable fee you can have all your important documents stored on an off site server. This will keep your files safe give you peace of mind.

About the author: Vlad Ehrsam writes exclusively for Full Info on Business, visit there today for the latest Business advice, and while you're there sign up for the free newsletter.
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