The beginning of the year is a great time to go through your file cabinets and discard all those out-of-date papers that are taking up valuable space. You’ll be surprised at how many obsolete papers occupy your filing cabinets. They seem to multiply!
When purging, ask yourself why you kept the paper when you first received it. If you don’t need it for future use or for tax purposes, get rid of it. Keep tax records and other important financial records in your files for six years.
If you take on this task a couple times a year, you’ll be much better off. Just be sure to schedule at least one session at the beginning of the year. Not only will this get your year off to a good, organized start, it will help you arrange information, receipts, and records and make filing your taxes a breeze.