Lesson 5: Piles and Files

How to keep paper from breeding when you’re not looking.

Tools of the Trade

People complain about paper at work, at home, and in home offices. It seems that your piles and files multiply overnight. You know you don’t really need every sheet you have, but you keep it just in case. You hang on to it because you don’t know what you need, where to put it, or how long to keep it. Then, you wonder where it is when you need it. Break your paper chains and learn how to become an information manager rather than a slave to paper.

In Lesson 4, we talked about the necessary elements for an office of any sort of size. A basic list of tools for dealing with papers would be:

• Ample-sized trashcan
• Drawer frames for hanging file folders
• Hanging file folders and their tabs
• Manila or colored file folders
• White file folder labels
• Black Twin Tip Sharpie marker
• Label maker or computer generated labels (optional)
• Post-It notes

Barbara Hemphill identifies five ingredients in her book, Taming the Paper Tiger at Work, as requirements for successful paper management: knowing what you want, a positive attitude, adequate time, the right tools, and regular maintenance. Three of the requirements are intangible. No, that doesn’t mean accessories.

Intangibles are what you can’t touch. Intangibles defy concrete definition. They aren’t goods to be bought and sold in the marketplace, and cannot be handed over in trade. Yet, intangibles can make you or break you. Intangibles can make a great, organized office and filing system happen when business is taken care of regularly — that’s maintenance — and use of the right tools for the job.

In short, the tools of a professional organizer take many forms. There are no secrets, just a recipe that not everyone learned growing up or in school. When you’re working, keep these in mind:

• Follow Julie Morgenstern’s two formulas for action
• Learn about the available and appropriate tools
• Identify what you really want
• Ask for help
• Set aside time, and take your time
• Focus on the positive
• Keep at it

Stop Junk Mail

Write to the Direct Marketing Association asking them to remove you from their direct mail lists. Have patience. Your request may take a while (they publish their delete list quarterly), but it is possible to significantly reduce mailbox clutter. Their address is: Mail Preference Service, Direct Marketing Association, P.O. Box 9008, Farmingdale, NY 11735-9008.

Incoming! You’ve Got Mail!

You’ve got more mail than you know what to do with. Do you realize that there really aren’t many things you can do with the mail? Hemphill calls them the Magnificent Seven:

1. Sort tray
2. Wastebasket
3. Calendar
4. To-do list
5. Contact file
6. Action file
7. Reference file

The process starts with a tray. Use a real tray, or a box, basket, or bin that’s flat and low. Using a low rider prevents you from overflowing the container and getting behind again.

Paper goes into the sort tray when it comes into your office — at home or work. (It stands to reason that your sort tray might be near the door.) Yes, this is a landing spot. Landing only. No living here. Papers enter, but they leave quickly. Set aside a time once a day for going through the sort tray. Never mind that it will get full again by this time tomorrow. Start with today’s mail. Don’t dump the backlog here. Just for today you will put the mail here, then sort it.

Next you need a wastebasket and a recycling bin. Take any items that you do not need, do not want (IRS notices don’t qualify, sorry), and will not use and place them firmly in the trash or recycling bin. If it makes you feel better, rip them in half.

Reduce, Reuse, Recycle

Newspapers and magazines often rule in unruly households. If you are not reading them, cancel the subscription. You’ll save money and create less mess. Old magazines are great for school art projects, hospital waiting lounges, and overseas charitable projects. A few telephone calls can tell you who might want your extra glossies. (Remember that the distribution of adult-oriented magazines is not only unethical here; in some states, it is illegal.) Finally, recycle, recycle, recycle.

Do I Really Need This?

It’s easy to become distracted by all the requests for your attention that come in the mail. If you’re already having trouble sorting today’s mail, calmly ask yourself a few questions. Be ruthless in your answers.

• Do I really need this? Remember that “need” means “cannot possibly do without.” Anything else is a want.
• Why would I want this piece of paper?
• Does this have a bearing on my income? Will it help me make a living?
• Did someone automatically send me this, or did I ask for it?
• Is this duplicate information?
• Is this something I already know? Validation feels good, but is it worth spending your time and filing space to keep it?
• Can this information be found somewhere else? Somewhere that I can get to easily?
• Can I identify a specific reason I would want this? “Just in case” is not reasonable.
• Are there any tax, legal, or financial implications to this paper?
• What’s the worst possible thing that could happen if I tossed this?

Remember Pareto’s Principle. You aren’t using 80 percent of what you already have. Do you want to add to that 80 percent of unusable stuff in your office? Toss it now before you get attached to it.

Plan to Plan

Give the gift of time. Meet with yourself at the same time every week. Train family and co-workers not to disturb you — or go to a favorite place where you won’t be bothered. Check in with your goals, organizing projects, and weekly events. Block time for what’s important. Schedule like items together. Write it all down. Use this time to give yourself structure so that you can be spontaneous when opportunity knocks.

Recording Who, What, Where, and When

Some of your incoming paper contains information that simply needs to be recorded for future use:

• Calendar entries for meetings and social gatherings
• Contact information for your rotary file, planner notebook, or technology-based contact manager
• Reminders for your to-do list

The primary and overriding goal is to cut down on paper by using one information manager. Instead of leaving a paper trail wherever you go, enter information where it will be of benefit to you — in your planner or hand-held organizer. Then, toss it!

Planners and Hand-Helds

The choice of what sort of planner to use is yours alone. Pick according to what you need and to your comfort zones. If you like gadgets, and feel confident about using technology-based solutions, you might want to invest in a hand-held organizer. These devices, also known as Personal Digital Assistants (PDAs), are easy to carry and are evolving into extremely powerful tools. If your job is stationary, you might benefit from using computer-based information management tools such as MS Outlook, ACT!, Franklin Covey’s Ascend, DayTimer, or Lotus Organizer. You may want both, and set up your office to include the mechanisms to allow your hand-held device and computer to share information.

If you are a more tactile person who likes a written format, stick with a paper-based planner. If you write large and take many notes, you might choose a larger letter- or legal-size planner. Consider, also, what format calendar you like to see and your budget. Prices range from the inexpensive to major investments. Personally, I like to view a week at a time with plenty of room for notes. All of the major brands — Franklin-Covey, DayRunner, DayTimer, Mead’s Cambridge, and At-A-Glance — have excellent weekly format pages. My favorite, though, is the Planner Pad. Originally featured in Hemphill’s first Taming the Paper Tiger, Planner Pad employs a unique funnel system of goals, daily tasks, and appointments viewed in a weekly format. It is an invaluable tool for creative and ADD individuals.

Who Did You Say?

Record contact information in your rotary file, planner, or hand-held organizer. If you use a rotary file, use the 3″ x 5″ size. It will allow you to staple business cards directly onto the card rather than recopying information. Or use a business card scanner and software to file and print the contact information.

Time and Place

Appointments go on the calendar along with adequate travel or wrap-up time. Record the information on the appropriate date, including the time and duration, location, host’s name, and telephone number (in case you must cancel, ask questions, or request directions). Then, feel free to toss. But, if important details are included on the invitation or announcement, slip those pieces of paper into a calendar hold file in chronological order. If you need to refer to it, it’s there. Toss when the event has passed.

Make the effort to develop a system for communicating with the people around you. Establish a regular check-in routine with people at home and at work. At home, enter the events on your family calendar (the refrigerator is a good location).

Add It to the List

Rid yourself of incoming papers that are spurring you to action by adding these items to your to-do list. Write down gift ideas, errands, phone calls, or items for discussion. Set up weekly planning sessions with yourself to schedule the to-do items, maintain your contact files, and review appointment schedules. Whatever you do, do it consistently.

Pay Up On Time

Two helpful products for people who need to see their bills to get them paid are: The EZ Pocket and IN2 Products’ Simply Put Daily Organizers. The EZ Pocket is a 31-pocket canvas wall file, and the Daily Organizer is a portable 31-slot tabletop unit. Both allow bills to be arranged visually in chronological order for timely handling. Visit them online at http://www.ezpocket.com and http://www.organizingproducts.com.

Action Files, Including Those Pesky Bills

Action files are exactly what they sound like — things you need to take action on. Probably, the sooner the better. These are the files and pieces of paper that are piled on our desks, left in our chairs, scattered on the floor, stacked on top of the credenza and the nightstand, and carried around in briefcases. We put them in sight where we cannot miss them. Isn’t it amazing how we can sidestep what stares us in the face every day?

Lots of people hate to put their action files in a file drawer. Out of sight becomes out of mind, and quickly becomes forlorn and forgotten.

It is difficult at first — but possible — to put away action files with gentle, diligent training. Use your closest file drawer that is accessible from your chair, near the phone, and at your fingertips. What makes more sense for most people, however, is a two-step process.

First, determine what you are calling action files. Some of it is probably material you are thinking about, going to read someday soon, or intending to pass along to someone else. Create other places or files for these items. Reading material could go into your briefcase to be read while commuting or waiting for appointments. Items to be passed along could be handled once a week during an equalizing session. If you are thinking about some other items, put these papers all in one file. Look at the file on a monthly basis, and make what decisions you can make at that time. What you’re doing here is breaking down a big job — action files — into more manageable jobs.

Second, use a container solution in your strategy. Vertical file racks will allow you to set each file on a step one above the other so that all the labels can be seen. Utilize accessories available from modular furniture dealers. Or consider a series of wall pockets to hold the hottest of your action files. Take inventory of how many action files you have most of the time, identify your activity center, and start looking for just the right container.

Line Up, Please!

Straight-line filing is easy on the eyes. Instead of the horizontal vertigo effect brought on by alternating file tab positions (left, center, right) many of us were taught, the straight line is much more peaceful and professional looking, Morgenstern says. She notes in her book, Organizing from the Inside Out, that you can add and delete files at any time without breaking the order of the system.

Reference Files: Mmm . . . Mmm Good

Reference files are full of information you will need in the future. It isn’t stuff that’s hanging around just in case. It’s stuff that you must have if the IRS comes calling.

A reference file can become an active file (and the reverse is also true). A client may have assets with your company (insurance, brokerage accounts, safe deposit box, etc.) but no changes are made for years. Suddenly you learn that he or she died. Their file is quickly made active again as the heirs settle the estate.

Papers stored in reference files are meant to be found again. Why keep them otherwise? Before you put something into a reference file, ask yourself if you really need it.

As we discussed in Lesson 4, if your filing system is not working well as it is, start over using your file storage boxes. Set up a new system. As you retrieve files from your present system, incorporate them into your new system. Rename and relabel as necessary.

According to Hemphill, an effective reference file has three components:

• Management — covers the decision to keep the paper, identifies how to label the file, establishes categories to file by like item, and creates a file index.
• Mechanics — includes your choice of file cabinets (sturdy), file folders (hanging and manila), labels, and rules for file arrangement.
• Maintenance — the upkeep: who will file and when, cleaning out old material, and knowing when to clear away old records.

Where Would I Look for It?

“Think ‘retrieval system’ not ‘filing system,'” says author and organizing consultant Hope Lafferty of (S)PACE in Austin, Texas. Think about where you will look for the information, not where you got it or what the report or article might be called.

Use the broadest categories possible. Instead of filing an auto repair receipt (the detailed ones that list what work was done) under “repairs,” try setting up a larger category called “auto” with sub-categories for repairs, warranty, and purchase information. You might file everything related to clients together under the client name — with categories established for contracts, invoices, correspondence, and background information — rather than splitting this information.

What pops into your head when you look at the file? That is often your best label, according to Judith Kolberg, founder of the National Study Group for Chronic Disorganization (NSGCD). Kolberg asks clients and professional organizers alike to consider what they’re saying under their breath. As you’re trying to file something, what are you muttering? If all you can think of is, “This is the stuff I can never find when I need it,” then consider calling it “Stuff I Can Never Find.” While it may sound a little off the wall for some folks, it just might work for you. Don’t be afraid to use unusual solutions if they work for you.

Taming the Paper Tiger Software

It isn’t a product for everyone, but The Paper Tiger software often works when nothing else will. It is a numerical system that uses your computer to index each file folder by keyword. As you add files, new folders are given the next number in line. You enter and retrieve files by keyword topics. The computer or a printed index list tells you exactly which number file to pull. Find out more at http://www.productivityconsultants.com.

Information, Please

The Association of Records Managers and Administrators (ARMA) can direct you to local certified records managers (1-800-422-2762). The Internal Revenue Service offers Publication 522, Recordkeeping for Individuals, and Publication 583, Starting a Business and Keeping Records (www.irs.gov or 1-800-829-1040).

What to Keep and for How Long?

Knowing what records to keep and for how long can be a very difficult and involved question to answer.

Anything to do with money and law falls under the heading of possibly important papers. They’re important because of your obligation to report and pay taxes. Maintaining good records can also help you in the event of a lawsuit, settling estates, and the sale of assets. A failure to produce necessary records can cost you valuable time and money.

Although many people believe seven years is the Internal Revenue Service standard, the truth is that many records should be maintained far longer or permanently. The IRS may request an audit within three years of the year in question. If the return was filed late, they may request an audit up to two years after the late filing. If the IRS has reason to suspect that taxes were intentionally or substantially misrepresented, they may act for up to six years. There is, however, no limit on questions relating to fraudulent filings. The bottom line? Tax documents are to be kept permanently.

Other personal and business records that should be kept permanently are: birth certificates, marriage and divorce records, adoption and custody records, proof of U.S. naturalization, investment records, cancelled checks for important payments (real property, etc.), deeds, mortgages, bills of sale, corporate charters and bylaws, minute books of corporate directors and stockholders, fixed asset and depreciation records, insurance records, property appraisals, contracts, patents and trademarks, construction records, and property improvement records.

The bottom line is that you must use good common sense. Consult your accountant, attorney, and appropriate administrative advisers for your specific situation.

Assignment: Piles and Files

Step 1

Take a deep breath. Even those of you who are moving through your lessons and assignments with the greatest of ease should stop for a moment. Congratulate yourself. You’re getting organized.

Step 2

Establish an incoming sort tray. This is as easy to do as it is to say, trust me. Place it where paper can easily land as it comes into your home or office — and near the wastebasket. If you have to, move the wastebasket. Remember that the sort tray is a low box, bin, basket, or tray where papers will land, but not stay for long. If you need to label it — for yourself and to communicate with others — then, label it. Tell family members and co-workers that this is where incoming information should land. Then, keep your word — sort the tray once a day.

Step 3

Sort today’s mail — and only today’s mail — from your sort tray into the appropriate categories and places. Remember to ask, “Do I really (really!) need it?” Immediately toss anything that is not needed or wanted.

Remember that your other categories are papers with information for your planner or hand-held organizer, action files, and reference files. Establish places for these categories, and an appointment with yourself to take care of it.

Lesson 5: Piles and Files
How to keep paper from breeding when you’re not looking.

Tools of the Trade

People complain about paper at work, at home, and in home offices. It seems that your piles and files multiply overnight. You know you don’t really need every sheet you have, but you keep it just in case. You hang on to it because you don’t know what you need, where to put it, or how long to keep it. Then, you wonder where it is when you need it. Break your paper chains and learn how to become an information manager rather than a slave to paper.

In Lesson 4, we talked about the necessary elements for an office of any sort of size. A basic list of tools for dealing with papers would be:

• Ample-sized trashcan
• Drawer frames for hanging file folders
• Hanging file folders and their tabs
• Manila or colored file folders
• White file folder labels
• Black Twin Tip Sharpie marker
• Label maker or computer generated labels (optional)
• Post-It notes

Barbara Hemphill identifies five ingredients in her book, Taming the Paper Tiger at Work, as requirements for successful paper management: knowing what you want, a positive attitude, adequate time, the right tools, and regular maintenance. Three of the requirements are intangible. No, that doesn’t mean accessories.

Intangibles are what you can’t touch. Intangibles defy concrete definition. They aren’t goods to be bought and sold in the marketplace, and cannot be handed over in trade. Yet, intangibles can make you or break you. Intangibles can make a great, organized office and filing system happen when business is taken care of regularly — that’s maintenance — and use of the right tools for the job.

In short, the tools of a professional organizer take many forms. There are no secrets, just a recipe that not everyone learned growing up or in school. When you’re working, keep these in mind:

• Follow Julie Morgenstern’s two formulas for action
• Learn about the available and appropriate tools
• Identify what you really want
• Ask for help
• Set aside time, and take your time
• Focus on the positive
• Keep at it

Stop Junk Mail

Write to the Direct Marketing Association asking them to remove you from their direct mail lists. Have patience. Your request may take a while (they publish their delete list quarterly), but it is possible to significantly reduce mailbox clutter. Their address is: Mail Preference Service, Direct Marketing Association, P.O. Box 9008, Farmingdale, NY 11735-9008.

Incoming! You’ve Got Mail!

You’ve got more mail than you know what to do with. Do you realize that there really aren’t many things you can do with the mail? Hemphill calls them the Magnificent Seven:

1. Sort tray

2. Wastebasket

3. Calendar

4. To-do list

5. Contact file

6. Action file

7. Reference file

The process starts with a tray. Use a real tray, or a box, basket, or bin that’s flat and low. Using a low rider prevents you from overflowing the container and getting behind again.

Paper goes into the sort tray when it comes into your office — at home or work. (It stands to reason that your sort tray might be near the door.) Yes, this is a landing spot. Landing only. No living here. Papers enter, but they leave quickly. Set aside a time once a day for going through the sort tray. Never mind that it will get full again by this time tomorrow. Start with today’s mail. Don’t dump the backlog here. Just for today you will put the mail here, then sort it.

Next you need a wastebasket and a recycling bin. Take any items that you do not need, do not want (IRS notices don’t qualify, sorry), and will not use and place them firmly in the trash or recycling bin. If it makes you feel better, rip them in half.

Reduce, Reuse, Recycle

Newspapers and magazines often rule in unruly households. If you are not reading them, cancel the subscription. You’ll save money and create less mess. Old magazines are great for school art projects, hospital waiting lounges, and overseas charitable projects. A few telephone calls can tell you who might want your extra glossies. (Remember that the distribution of adult-oriented magazines is not only unethical here; in some states, it is illegal.) Finally, recycle, recycle, recycle.

Do I Really Need This?

It’s easy to become distracted by all the requests for your attention that come in the mail. If you’re already having trouble sorting today’s mail, calmly ask yourself a few questions. Be ruthless in your answers.

• Do I really need this? Remember that “need” means “cannot possibly do without.” Anything else is a want.
• Why would I want this piece of paper?
• Does this have a bearing on my income? Will it help me make a living?
• Did someone automatically send me this, or did I ask for it?
• Is this duplicate information?
• Is this something I already know? Validation feels good, but is it worth spending your time and filing space to keep it?
• Can this information be found somewhere else? Somewhere that I can get to easily?
• Can I identify a specific reason I would want this? “Just in case” is not reasonable.
• Are there any tax, legal, or financial implications to this paper?
• What’s the worst possible thing that could happen if I tossed this?

Remember Pareto’s Principle. You aren’t using 80 percent of what you already have. Do you want to add to that 80 percent of unusable stuff in your office? Toss it now before you get attached to it.

Plan to Plan

Give the gift of time. Meet with yourself at the same time every week. Train family and co-workers not to disturb you — or go to a favorite place where you won’t be bothered. Check in with your goals, organizing projects, and weekly events. Block time for what’s important. Schedule like items together. Write it all down. Use this time to give yourself structure so that you can be spontaneous when opportunity knocks.

Recording Who, What, Where, and When

Some of your incoming paper contains information that simply needs to be recorded for future use:

• Calendar entries for meetings and social gatherings
• Contact information for your rotary file, planner notebook, or technology-based contact manager
• Reminders for your to-do list

The primary and overriding goal is to cut down on paper by using one information manager. Instead of leaving a paper trail wherever you go, enter information where it will be of benefit to you — in your planner or hand-held organizer. Then, toss it!

Planners and Hand-Helds

The choice of what sort of planner to use is yours alone. Pick according to what you need and to your comfort zones. If you like gadgets, and feel confident about using technology-based solutions, you might want to invest in a hand-held organizer. These devices, also known as Personal Digital Assistants (PDAs), are easy to carry and are evolving into extremely powerful tools. If your job is stationary, you might benefit from using computer-based information management tools such as MS Outlook, ACT!, Franklin Covey’s Ascend, DayTimer, or Lotus Organizer. You may want both, and set up your office to include the mechanisms to allow your hand-held device and computer to share information.

If you are a more tactile person who likes a written format, stick with a paper-based planner. If you write large and take many notes, you might choose a larger letter- or legal-size planner. Consider, also, what format calendar you like to see and your budget. Prices range from the inexpensive to major investments. Personally, I like to view a week at a time with plenty of room for notes. All of the major brands — Franklin-Covey, DayRunner, DayTimer, Mead’s Cambridge, and At-A-Glance — have excellent weekly format pages. My favorite, though, is the Planner Pad. Originally featured in Hemphill’s first Taming the Paper Tiger, Planner Pad employs a unique funnel system of goals, daily tasks, and appointments viewed in a weekly format. It is an invaluable tool for creative and ADD individuals.

Who Did You Say?

Record contact information in your rotary file, planner, or hand-held organizer. If you use a rotary file, use the 3″ x 5″ size. It will allow you to staple business cards directly onto the card rather than recopying information. Or use a business card scanner and software to file and print the contact information.

Time and Place

Appointments go on the calendar along with adequate travel or wrap-up time. Record the information on the appropriate date, including the time and duration, location, host’s name, and telephone number (in case you must cancel, ask questions, or request directions). Then, feel free to toss. But, if important details are included on the invitation or announcement, slip those pieces of paper into a calendar hold file in chronological order. If you need to refer to it, it’s there. Toss when the event has passed.

Make the effort to develop a system for communicating with the people around you. Establish a regular check-in routine with people at home and at work. At home, enter the events on your family calendar (the refrigerator is a good location).

Add It to the List

Rid yourself of incoming papers that are spurring you to action by adding these items to your to-do list. Write down gift ideas, errands, phone calls, or items for discussion. Set up weekly planning sessions with yourself to schedule the to-do items, maintain your contact files, and review appointment schedules. Whatever you do, do it consistently.

Pay Up On Time

Two helpful products for people who need to see their bills to get them paid are: The EZ Pocket and IN2 Products’ Simply Put Daily Organizers. The EZ Pocket is a 31-pocket canvas wall file, and the Daily Organizer is a portable 31-slot tabletop unit. Both allow bills to be arranged visually in chronological order for timely handling. Visit them online at http://www.ezpocket.com and http://www.organizingproducts.com.

Action Files, Including Those Pesky Bills

Action files are exactly what they sound like — things you need to take action on. Probably, the sooner the better. These are the files and pieces of paper that are piled on our desks, left in our chairs, scattered on the floor, stacked on top of the credenza and the nightstand, and carried around in briefcases. We put them in sight where we cannot miss them. Isn’t it amazing how we can sidestep what stares us in the face every day?

Lots of people hate to put their action files in a file drawer. Out of sight becomes out of mind, and quickly becomes forlorn and forgotten.

It is difficult at first — but possible — to put away action files with gentle, diligent training. Use your closest file drawer that is accessible from your chair, near the phone, and at your fingertips. What makes more sense for most people, however, is a two-step process.

First, determine what you are calling action files. Some of it is probably material you are thinking about, going to read someday soon, or intending to pass along to someone else. Create other places or files for these items. Reading material could go into your briefcase to be read while commuting or waiting for appointments. Items to be passed along could be handled once a week during an equalizing session. If you are thinking about some other items, put these papers all in one file. Look at the file on a monthly basis, and make what decisions you can make at that time. What you’re doing here is breaking down a big job — action files — into more manageable jobs.

Second, use a container solution in your strategy. Vertical file racks will allow you to set each file on a step one above the other so that all the labels can be seen. Utilize accessories available from modular furniture dealers. Or consider a series of wall pockets to hold the hottest of your action files. Take inventory of how many action files you have most of the time, identify your activity center, and start looking for just the right container.

Line Up, Please!

Straight-line filing is easy on the eyes. Instead of the horizontal vertigo effect brought on by alternating file tab positions (left, center, right) many of us were taught, the straight line is much more peaceful and professional looking, Morgenstern says. She notes in her book, Organizing from the Inside Out, that you can add and delete files at any time without breaking the order of the system.

Reference Files: Mmm . . . Mmm Good

Reference files are full of information you will need in the future. It isn’t stuff that’s hanging around just in case. It’s stuff that you must have if the IRS comes calling.

A reference file can become an active file (and the reverse is also true). A client may have assets with your company (insurance, brokerage accounts, safe deposit box, etc.) but no changes are made for years. Suddenly you learn that he or she died. Their file is quickly made active again as the heirs settle the estate.

Papers stored in reference files are meant to be found again. Why keep them otherwise? Before you put something into a reference file, ask yourself if you really need it.

As we discussed in Lesson 4, if your filing system is not working well as it is, start over using your file storage boxes. Set up a new system. As you retrieve files from your present system, incorporate them into your new system. Rename and relabel as necessary.

According to Hemphill, an effective reference file has three components:

• Management — covers the decision to keep the paper, identifies how to label the file, establishes categories to file by like item, and creates a file index.
• Mechanics — includes your choice of file cabinets (sturdy), file folders (hanging and manila), labels, and rules for file arrangement.
• Maintenance — the upkeep: who will file and when, cleaning out old material, and knowing when to clear away old records.

Where Would I Look for It?

“Think ‘retrieval system’ not ‘filing system,'” says author and organizing consultant Hope Lafferty of (S)PACE in Austin, Texas. Think about where you will look for the information, not where you got it or what the report or article might be called.

Use the broadest categories possible. Instead of filing an auto repair receipt (the detailed ones that list what work was done) under “repairs,” try setting up a larger category called “auto” with sub-categories for repairs, warranty, and purchase information. You might file everything related to clients together under the client name — with categories established for contracts, invoices, correspondence, and background information — rather than splitting this information.

What pops into your head when you look at the file? That is often your best label, according to Judith Kolberg, founder of the National Study Group for Chronic Disorganization (NSGCD). Kolberg asks clients and professional organizers alike to consider what they’re saying under their breath. As you’re trying to file something, what are you muttering? If all you can think of is, “This is the stuff I can never find when I need it,” then consider calling it “Stuff I Can Never Find.” While it may sound a little off the wall for some folks, it just might work for you. Don’t be afraid to use unusual solutions if they work for you.

Taming the Paper Tiger Software

It isn’t a product for everyone, but The Paper Tiger software often works when nothing else will. It is a numerical system that uses your computer to index each file folder by keyword. As you add files, new folders are given the next number in line. You enter and retrieve files by keyword topics. The computer or a printed index list tells you exactly which number file to pull. Find out more at http://www.productivityconsultants.com.

Information, Please

The Association of Records Managers and Administrators (ARMA) can direct you to local certified records managers (1-800-422-2762). The Internal Revenue Service offers Publication 522, Recordkeeping for Individuals, and Publication 583, Starting a Business and Keeping Records (www.irs.gov or 1-800-829-1040).

What to Keep and for How Long?

Knowing what records to keep and for how long can be a very difficult and involved question to answer.

Anything to do with money and law falls under the heading of possibly important papers. They’re important because of your obligation to report and pay taxes. Maintaining good records can also help you in the event of a lawsuit, settling estates, and the sale of assets. A failure to produce necessary records can cost you valuable time and money.

Although many people believe seven years is the Internal Revenue Service standard, the truth is that many records should be maintained far longer or permanently. The IRS may request an audit within three years of the year in question. If the return was filed late, they may request an audit up to two years after the late filing. If the IRS has reason to suspect that taxes were intentionally or substantially misrepresented, they may act for up to six years. There is, however, no limit on questions relating to fraudulent filings. The bottom line? Tax documents are to be kept permanently.

Other personal and business records that should be kept permanently are: birth certificates, marriage and divorce records, adoption and custody records, proof of U.S. naturalization, investment records, cancelled checks for important payments (real property, etc.), deeds, mortgages, bills of sale, corporate charters and bylaws, minute books of corporate directors and stockholders, fixed asset and depreciation records, insurance records, property appraisals, contracts, patents and trademarks, construction records, and property improvement records.

The bottom line is that you must use good common sense. Consult your accountant, attorney, and appropriate administrative advisers for your specific situation.

Assignment: Piles and Files
Step 1

Take a deep breath. Even those of you who are moving through your lessons and assignments with the greatest of ease should stop for a moment. Congratulate yourself. You’re getting organized.

Step 2

Establish an incoming sort tray. This is as easy to do as it is to say, trust me. Place it where paper can easily land as it comes into your home or office — and near the wastebasket. If you have to, move the wastebasket. Remember that the sort tray is a low box, bin, basket, or tray where papers will land, but not stay for long. If you need to label it — for yourself and to communicate with others — then, label it. Tell family members and co-workers that this is where incoming information should land. Then, keep your word — sort the tray once a day.

Step 3

Sort today’s mail — and only today’s mail — from your sort tray into the appropriate categories and places. Remember to ask, “Do I really (really!) need it?” Immediately toss anything that is not needed or wanted.

Remember that your other categories are papers with information for your planner or hand-held organizer, action files, and reference files. Establish places for these categories, and an appointment with yourself to take care of it.