Record Keeping Tips

We’ve all heard countless times to keep out tax records for at least seven years. This seems relatively simple because we can just file it away or store it in a box in the closet, right? What most of us don’t plan for is the loss of these records due to a flood, fire or natural disaster. And what if you lose personal property or cherished possessions? How do you keep a record of these things? Well, we have a few tips that will help both individuals and businesses plan for these unfortunate situations.

–          Scan and store tax, financial, insurance and other important documents digitally. Catalog the files by date or subject for easy retrieval. You can store them on a CD, USB drive or better yet, upload to a cloud storage service. Just be sure to password protect the files for security.

–          At least annually, make the time to take a digital inventory of your home or business. Photograph or video record (with narration) each room in your house or business, your clothing, jewelry, furniture, equipment, etc.  This will make it a lot easier should you have to provide an inventory to you insurance company. Be sure to categorize these records and secure them with a password as well.

–          Discuss this with your immediate family or business partners. Make sure they know where to locate this information should you not be able to yourself.