One of my desk drawers at home is devoted to important stuff. It’s not that big of a drawer, but it has a very critical purpose… and that is to keep me out of trouble! This is the place the vehicle title rests until we make the next trip to our safe deposit box. It’s the place my paid medical and dental bills go, especially if I want to get reimbursed from my Health Savings Account. It’s also where I put any letters and receipts I receive for charitable contributions. During tax season all of the envelopes marked “Important Tax Documents Enclosed” wait in there until I have time to deal with them.
This drawer does not get cluttered with bills to pay, magazine subscription offers to consider, or invitations to respond to. However, I do stick vacation reservation confirmations in there. And vehicle tab receipts that I have paid for online but not yet received.
Since going to the drawer system I have greatly reduced my time looking for important papers. I strongly encourage you to consider such a system. You could use a file box, tray, file folder, or large envelope. It makes preparing for income tax season so much easier. Also, it relieves stress when you are heading out the door for a much needed vacation!
Sharon Holcomb, EA