What’s Needed
When you are setting up your home office, it isn’t always easy to know what you need. Naturally, everybody thinks of a desk and filing cabinet, and the proper items to go along with these. However, it is organizing the systems within the home office environment that is truly a challenge. Client files, contacts, subcontractor records, and supplier records must be organized completely in order to operate an effective and efficient home office.
Organizing Client Files
Since most home based businesses are service oriented, it makes sense to keep track of the clients separate from the expenses. It is often simple to have one file for each client that includes their full information, needs, and their billing. File the newest information to the front of the file to make it easier to find. And always clip your files in to the folder. This also makes it easier to keep things organized. It is also a good idea to use a different colour file folder for clients than you use for expenses. File these alphabetically by client, and make sure to mark the year that is relevant on the file (or project if your company is project based).
Organizing Expenses
The same goes for expenses. If you use any suppliers repeatedly, they should have their own file. File in reverse chronological order (newest at the front) within the vendor file. Subcontractors, if you use them, should be considered the same as any other supplier or expense. File them the same way. Some businesses use a lot of subcontractors, and track them separately. They are still an expense, though. One way to keep them separate in your filing system is to simply use a different colour file folder for subcontractors than you use for other expenses. Make sure it is also different from your client files. This helps keeps filing errors to a minimum.
Current Month Records
Current receivables and payables should have their own files that are used only for the month that they are current. Once paid or received, they should be put into the main filing system and clipped into their respective files. It is easiest if current month files are kept at your desk, and the other files are kept in a separate filing cabinet.
You may find that you need more than this, depending on your business. For example, employee files. Simply add a new section in your filing cabinet and use a different colour folder. This basic system works so well; it has been used by multi-million dollar, multi-office companies.
