What better time to de-clutter your home – and your home office – than the beginning of the New Year? It's time to take charge and sort through that collection of old bank statements and other files stored in those dusty old file cabinets. Whether you're self-employed with a formal home office or you have a nook that's been designated as your business space, there are tips and guidelines to help you organize and manage everything from office supplies to all those old papers and files.
Tools for De-Cluttering a Home Office
There are a few items you'll want to have on hand for cleaning and de-cluttering your home office. Plan ahead so you'll know exactly what's needed. Tools for de-cluttering a home office are as follows:
- Garbage bags. Black bags that can't be seen through are best. Even if you use a shredder, you're still at risk for tossing something whole that a thief could use.
- Shredder. This a valuable piece of equipment to use all year long when disposing of important and/or personal papers.
- Cleaning supplies. You may as well give the furniture a good dusting and cleaning while you're at it.
- Recycling bin(s). Good for old newspapers, old file folders, plastic report covers and anything else that can be recycled.
- New file folders with updated labels. This is a good time to update and upgrade your filing system.
This is also a good time to go paperless with a computerized digital system of record-keeping. Certain documents have to remain in their original paper form, such as birth certificates, Social Security cards, a marriage license and death certificates to name a few, but others can be scanned and kept in digital format on a computer disk, flash drive or a digital organizer such as the device shown on the Neat website. Going green in a home office saves trees and money.
Organize Your Office Cleanup Plan
Choose a time when you're not likely to be interrupted by children, household duties, clients and the telephone. Sorting through important personal and household paperwork demands complete attention (unless you like digging through bags of garbage to find something you shouldn't have thrown out. I speak from experience.)
Designate a spot to put everything you must keep, such as homeowner's paperwork, insurance papers, tax papers, business contracts, recent purchase orders (if you have a home business) and other obvious items.
Designate another spot for obvious throw-away items – not the garbage can. At the end of the job you'll want to go through this pile one more time before you discard the items for good.
Finally, designate a place for items in question. Do you have cancelled checks, old bills and/or bank statements from the turn of the century? If so, then put them in the pile and read on.
What Important Papers Should I Keep and for How Long?
Keep for a minimum of five years all financial documents related to your home business – gas receipts, transportation (taxi, bus, etc.), office supply receipts, purchase orders, and anything that supports business expenses. Go a step further and organize items on a digital file keeper to keep things tidy.
Rhonda Abrams, contributing business writer for the Pensacola News Journal (Florida), offered this advice for keeping legal documents: "Hold on to any contracts, business licenses or incorporation papers, critical correspondence with suppliers or customers, and anything that might involve a legal action on which the statute of limitations has not run out."
When it comes to credit cards, most agencies provide customer statements online that can be printed at home if need be. You don't have to hold on to paper statements.
Keep employment pay stubs until your W-2 form arrives. Keep old W-2 forms until you file for Social Security in case there's any discrepancy in your earnings.
Monthly bank statements should each be kept at least one year.
Tax documents need to be kept at least seven years.
Information from the Good Housekeeping website states that investment records should be kept as long as you own the securities, plus another seven years.
When in Doubt, Throw It Out?
The old saying doesn't necessarily hold true in a home office setting. If you have any doubt about whether or not you should throw out a particular document, then you'd better hang on to it. One good example is letters from the Social Security Administration. You never know when you might have to defend yourself in the event of an over-payment or other discrepancy.
After four decades of working, I've learned what's safe to throw out and what I should keep. Old documents may take up valuable space, but some things should be kept indefinitely in the event of legal issues. I've put my scanner and flash drives to good use.
You've cleared away the paper clutter, now dispose of any office supplies you don't use. Rid your space of broken machinery that isn't going to be fixed. Jot down things you'd like to add or goals to accomplish that will improve the efficiency and appearance of your home office. Sprucing up your space will help you get motivated for the months ahead. The end result will be a work space you can be proud of that looks and feels professional.
Sources
- Neat (Online website): "Neat Desk", "Neat Receipts" (The Neat Company, No date).
- Pensacola News Journal: "Clear Office Clutter this Year" (Rhonda Abrams, Jan. 1, 2012, page 3B).
- Good Housekeeping (Online magazine): "How Long to Keep Important Papers" (No author, 2012).
Mary King - Mary King is a Suite101 Topic Editor for the Caregiver Support and Home Management sections. She has authored 5 teen-based novels.
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