Organizing Your Accounting Documents Digitally: A Step-by-Step Guide

Having a well organized document management system is essential for running a business. But managing years worth of financial documents can be tedious and time consuming, but with digital document management, it’s much easier to keep track of your important records. Not only is it less labor-intensive, but it also requires no physical storage. Additionally, well designed document management platforms have organizational features built in to help you sort and keep track of your important documents. This organization will help save time and make your accountants work life run more smoothly, and for your business, having organized and stored documents allows you to accurately track financial information, provide evidence of transactions, and comply with regulations. It also allows you to establish an audit trail, access historical financial information, and make more informed business decisions. If you’re looking to organize your accounting documents on the cloud, this article provides a step-by-step guide for how to do it. Keep reading!

1. Gather all your accounting documents.

Before you can start, you will need to gather all of your relevant documentation. This should include any invoices, receipts, bills, bank statements, and other documents related to your businesses finances from the past 5 years. It is important to keep financial records for 5 years because it helps you to track your spending and income over a longer period of time, which can be useful when preparing taxes, applying for loans, or making financial decisions. It also helps to ensure that you are able to access the supporting documentation you need if you are ever audited by the CRA. Furthermore, it helps to ensure that you have an accurate record of your finances, which is essential for proper budgeting and financial planning.

2. Scan all your documents into digital files.

To transfer your documents onto the cloud, you will need to go through the process of scanning and uploading your important documentation. You can do this with a scanner or with an app such as Canon Scanner or Scansnap. Certain document management softwares, such as LedgerDocs, give you the ability to scan documents directly from your smartphone or tablet into your digital folders. This feature can help simplify and expedite this more tedious step. Choosing a software like LedgerDocs that integrates with bookkeeping software like Xero or QuickBooks can also help save time on data entry and make the process more efficient. With the integration, you can automatically upload documents from your accounting software into your document management software. Once you have scanned and uploaded your documents, you can easily access them from your cloud-based storage.

3. Create a file system for organizing your documents.

Now that you’ve uploaded all your documents into your software, it’s time to set up your filing system. Start by creating folders that make sense for your business or organization – like company folders with subfolders and document categories, plus a folder for each year. Then, upload the documents you need to keep track of into the right folders. We have a Folder Organization System sample PDF to provide you with one way to organize your folder structure.

4. Label each document with a unique identifier.

If you want to be able to quickly find your documents in the future, labeling each one with a unique identifier is a great way to go. You could use the date, type of document, or a combination of both. You could even add tags to your documents, like “Invoice” for all of your invoices, so they’re easy to find.

5. Store your documents in the appropriate folders.

Once you’ve moved your documents online, it’s essential to stay on top of your document filing organization. With LedgerDocs, you can quickly upload new documents directly to the right folder, either from your phone or directly from your emails. Plus, you can even send document requests to your coworkers or clients to get any missing documents.

6. Backup your documents regularly.

If you want to make sure your accounting documents are safe, it is recommended to back them up to a secure cloud storage solution like LedgerDocs, Google Drive, Dropbox, or OneDrive. That way, even if your system crashes or something else happens, your documents are still secure.

Keeping your accounting documents safe and secure is essential for any business. With LedgerDocs, you can do that and more, saving time and money in the process. Our cloud-based platform makes managing and collaborating on business documents easy, eliminating redundant tasks and data entry, while boosting productivity. Get in touch with us if you have any questions – we’ll be happy to help.

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