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I have 12 files, one for each month. I also have a seperate file for tax receipts. All of my receipt from August go into the August file. September's file still has last September's receipts. I'll shred Sept 2011 receipts on Sept 1 and start putting new September receipts in that file. That way I always have a rolling 12 months of receipts available sorted by month. Makes it easy to track something down when the need arises. Anything that's going to need to be kept for taxes goes into the current year's tax file and stays with the return.
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Lee
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