When you deal with a lot of financial documents and tasks, it becomes really easy to mess things up, lose documents and so on. That’s because the financial trail deepens, and it’s stuff like that which can prove to be a problem. Which is why having a DIY paper trail for leases, loans, government forms and financial documents can be a godsend. It’s a great idea to consider, and it will help you more than expected. In the end, it’s an excellent thing to focus on, and the fact that you can go the DIY route if you want, it truly helps quite a bit.
What do you need for a DIY paper trail?
Before you get into this, it’s a good idea to create a list of all the documents that you will need. And a lot of the time, what you require here is a list with documents that you should have ready to use. Loan applications are a major aspect to consider here, and the same thing is valid when it comes to government forms or any lease agreements. They are at the forefront though, and you can try to add more documents and information, which does matter more than you might expect in these situations.
Gather the documents
DIY paper trails can be digital, but also paper-based. We think going the digital route is a better idea, mainly because it allows you to gather documents and keep them in a single place. You can also create copies, which is always a handy thing to have, and it will help more than expected.
Additionally, you should be looking in the email attachments, cloud accounts, bank or payroll portals, and even physically in the desk drawers or filing cabinets. All of these things matter and that alone can make it easier to manage all the documents effectively and without any issues.
Creating a logic-based organization system
We think it’s a great idea to have a logic-based organization system mainly because it offers quality, consistency and value. A lot of people will find that organization systems are effective and they offer consistent value. Plus, you should have categories here. The categories we recommend include legal, financial, income, miscellaneous and identity. In the miscellaneous section you can have documents made by the utility bill generator, for example. That way, you have necessary documents that could prove to be very handy and useful, especially in the long run.
Digitizing the physical documents
One of the great things to have when it comes to physical documents is digitization. And that’s because you don’t want to carry a ton of documents all the time. Instead, you have a digital version of the document. It’s just as valid, but lightweight and you can easily create a backup for it. Use scan apps to create digital versions for documents, and save them as PDF files on your device. Ideally, you want to double-check the scans and make sure that they are cropped adequately and without any issues. That can prove to deliver better results in the end.
Cross-check everything
An issue that’s quite prevalent for most people is that they don’t always have their info up to date. And while that might not seem like an issue at first, it most definitely becomes one, if you’re not careful. The most important thing is to ensure that you have all the info and there’s no missing info. Because if there is, that can be quite problematic from a business standpoint. We highly recommend approaching this with a focus on consistency, and in the end, that will only make the process easier.
Always ensure that the paper trail is secure
That’s the problem that most people have. Sure, they create a paper trail, but they don’t know how to keep it secure. And if someone with bad intentions has access to your info, that alone can prove to be a problem. In these situations, the most important thing is to focus on security and avoiding any issues.
Having a local backup that’s close to impossible to access is a great idea, and it will only make things better in the end. You can also use an encrypted cloud storage service, as it could help prevent unwanted access. Yet at the same time, it also allows you to access these documents at any time, from pretty much anywhere you are, and that alone will help quite a bit.
Keeping the paper trail the entire year
Some maintenance is required even if you create such a paper trail. A lot of people don’t do this, but that’s an issue that you may want to avoid. On a monthly basis, it makes sense to add the new pay stubs, bills and bank statements.
Every quarter, you should review for the expired documents, and also create an update wherever you can. Doing that and also archiving older documents as often as possible so you can access them at any time, these things will help you quite a bit. That’s because you never know when these financial documents will be needed.
For example, if you apply for a grant, if you have a loan pre-approval or anything similar, these things can become more challenging to deal with. In the end, you will find yourself getting the better outcome and results if you have a very well-organized DIY paper trail. It will make things much easier to manage, not to mention the results you’re getting can be second to none.
You can have a physical archive, but it should be minimal
Ideally, you want to have a physical version for some of the documents. A lot of the time, however, you want to go the digital route. People might not think that at first, but a physical archive is indeed useful for stuff like social security cards, notarized contracts and birth certificates. For the other documents that you use on a daily or monthly basis, you can usually go the digital route. That’s why you want to have a good mix of digital and physical versions. However, stick with the digital versions where possible.
Paper trail mistakes to avoid
It’s very easy to make mistakes when you handle a lot of documents. And realistically, that’s something most of us will deal with. Here’s what you need to know:
- Rush jobs such as waiting until the last minute when you need documents, that will only lead to mistakes. You want to avoid being sloppy, instead you want to be organized, and that’s important to focus on.
- Vague file names are a problem. Be very clear when it comes to how you name stuff, as it will make things easier for you.
- If there are updates you need to make to these documents, make them. Don’t leave any updates, as it can be a problem. Adapt to that, and it will surely enhance the experience.
- Backups should always be something to consider. If you don’t have a backup, that’s an issue you want to avoid.
- Again, avoid keeping everything in emails. Some people think that emails are great archives, but they are not. You can easily delete those and lose files.
It’s a good idea to create a DIY paper trail, but you do want to manage it in a way that’s professional, appropriate and comprehensive. We think it’s an excellent idea to have a paper trail you monitor and manage, because it will only make it easier to stay organized!