I wrote about this a while back and I want to touch upon it again as it’s getting easier and easier to go paperless. The difference now is that the meaning of “paperless” is more literal in the sense that you don’t get a piece of paper at all. With that said if you could all indulge me for a minute I’d like to request that everyone reading this consider switching all of their statements (where the option is available) to paperless. This is of benefit to both you and the environment. First the environment…
Less use of ink (chemicals)
Saves trees
Less CO2 emissions (a vehicle has to drive that piece of mail from its point of origin to your business)
The advantages to you..
1) Less risk of identity theft. On a credit card statement for example, your credit card number is usually right on the bill. Same goes for your business checking account. Then you get your phone bill and that has your phone number on it. Someone interested in stealing your identity only needs to lift a CC statement and a phone statement and they have A LOT of info on you, enough that they could make purchases with your credit card via “carding” to figure out the expiration date. If you go paperless, there’s nothing to steal.
2) Less clutter in your office - I HATE filing with a mad passion. If a piece of paper lands on my desk it is doomed to that existence for at least 6 months until I become motivated enough to scan it and then shred it.
3) If it comes as a PDF to begin with you save time by not having to scan it.
4) Finding a transaction on a computer is easier then sifting through a pile of paper. A scanned PDF is not searchable unless you have a package like PaperPort which integrates an OCR and database feature. The documents that are provided directly from your financial institution however ARE natively searchable so if you’re looking for something specific, it’s much easier to locate using the built in search on your computer.
I’m currently getting my business & personal checking and savings statements, my AMEX statement, VOIP bill, and wireless bill online. When the bill is available I get an email. If I get lazy and skip a month it’s not a big deal as most institutions provide at least a 6 month history. With AMEX you can request older digital copies for free. Bank of America maintains a 1.5 year history, etc. so even if you’re a procrastinator, there’s still plenty of time to catch up. One of the coolest “going paperless” options… I have a business account set up at my local Apple store (it’s free). Whenever I make a purchase at the local Apple store, in addition to getting a small discount on Apple products, I also walk out of the store without a paper receipt, they email it directly to me (I also don’t take a bag either even though they have nice bags (I bring a backpack)).
There’s a minimal amount of work you need to do in order to have a good functional system where things are easy to find. Part of that is creating folders with obvious names like “business checking”, “AMEX”, “taxes”, etc. The second part of that is renaming the PDF once you’ve downloaded it. I usually rename my documents to the statement closing date using a Year, Month, Day format. As mentioned in a previous entry, the advantage of this is that if you sort by alphabetical order, your documents will also always be in chronological order. For example let’s say we have the following dates:
June 1st 2006, July 1st, 2006, June 1st, 2007, July 1st, 2007. If we name those files in the traditional (for the US) method of month/day/year (and the same problem applies for day/month/year) we end up with this in an alphabetical sort:
06012006
06012007
07012006
07012007
Now, if we name them in the year/month/day format (year/day/month will not work) we end up with files in chronological order when sorted alphabetically:
20060601
20060701
20070601
20070701
In addition I also usually tag another descriptor on the end that lets me know what it is. For example the wireless bill might be 20080804_wireless. By adding that extra bit to the end it helps if I’m doing a search in that it allows me to use wild cards for example, in order to find all files ENDING with wireless I could just enter *wireless. Not all search tools support wild cards but many do. So there you have it. Food for thought!
Cheers, Joe