Financial records are records of the financial activities of an individual or an institution. Keeping the records in order is key and helps in managing finances. You can use electronic storage or labelled files in secured drawers for storage. These records may include cash flow statements, balance sheets and many others.
Keeping organised financial records is important because;
- It helps both an individual and an institution have accurate financial statements, and this can help solve financial disputes that may involve the banks with confidence because your records are available.
- Having organised financial records also help in the preparation and filing of tax returns.
- It also helps when calculating an institution’s profits and/or losses. Without the records, then evaluating profits and losses is not possible.
- It is also important as it helps manage cash flow effectively.
- Having organised financial records also helps one track their expenditures, promoting accountability.
Personal documents are written or printed material that provides personal information, including a passport, visa, identity card, driving licence, credit card and many others.
Keeping personal records organised is necessary because of the following reasons.
- Having your records organised helps save time and energy. You will not spend much time trying to fetch them because you already know where they are.
- It also helps save money because replacing some documents requires money. Having them organised reduces the chances of losing them.
- Keeping personal records also safeguards essential information about you. Keep them organised in a place that is not easily accessible to everyone.
- Keeping personal records organised also helps one avoid stress and frustrations. You will get frustrated when trying to find a document you need urgently but do not seem to find it. You will get stressed by the thoughts of not knowing where it is.
Keeping financial records and personal documents helps one stay organised. It also helps record keeping and makes tracking very easy, reducing unnecessary tasks. To achieve organised records and documents, you can start by organising the few ones you have and continue as new documents come in. Alternatively, if the documents are a lot, you can dedicate time to getting your documents in order by yourself bit by bit until they are in order. If you can do it alone, you don’t need to ask for help, as this also deprives your privacy.
