Bookkeeping for the Unorganized

Do you struggle with keeping your finances organized? Don't worry, IT'S NORMAL! But regardless, your books still need to be done... so here's some steps to bookkeeping success! Even for the unorganized person. 

And remember...the #IRSSUCKS

John Briggs | Tax Genius
info@incitetax.com
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Chapters

• 0:00 Embracing Your Weaknesses
• 0:33 Schedule Your Bookkeeping Time
• 0:58 Simplify Your Reports
• 1:36 Know How Long Institutions Keep Records
• 2:04 Download & Organize Monthly Statements
• 2:55 Manage Receipts the Easy Way
• 3:04 You’re Not Broken, You Just Need a System
• 3:33 The Walt & Roy Disney Lesson: Find Your Organizer

Transcript

What are some tips for a completely unorganized person to stay on top of their bookkeeping, reports, documents, and receipts?

I love this question because I think it's important that we acknowledge where we are weak. Just because we're weak in one area doesn't mean we have to lack confidence in other areas of our life. Organization is about structure and routine. So, if you're unorganized, you're going to need to add a little bit of that into your life.

I'm sharing these tips from the standpoint of someone who is unorganized. These are things you might consider doing.

Bookkeeping:
You need to schedule time to get your books done. If you're not an organized person, you’re probably going to hate doing your books. And usually, if there’s a task we hate doing, it’s very easy to put it off. Bookkeeping should be done on a consistent, regular basis to prevent it from becoming a giant once-a-year project. The only way to make that happen is to schedule the time—and even if you're unorganized, honor that appointment and get your books done during that time frame.

Reports:
If you're unorganized, keep things simple. Create a short list—three to five items—whether it's three to five reports or three to five key metrics you want to see regularly. Keeping that list small means you're not reinventing the wheel every time. That small list minimizes the energy you spend trying to decide what you need to review. And again, make it part of your routine—maybe once a month, schedule time to look at these reports.

Documentation:
Find out how long different companies store your statements. How long does your bank hold your records? What about your credit card company or lender? Some banks only store statements for a year or three years. If you need something older, getting it can be a huge hassle—which is especially painful for an unorganized person. So, figure out how long they keep them and plan accordingly.

I recommend going into your accounts on a regular basis and downloading all your statements—January through December—in one sitting. Save those in a folder where you can find them easily, like Dropbox or Google Drive. Many banks offer electronic delivery of statements, which is super convenient for unorganized folks. You’ll usually get a monthly email with your statement, so just create a folder in your email inbox called "Statements" and drag those emails in there. Now you don’t have to log in monthly to download them—they’re all in one place. If your inbox starts getting too full, you can then move the files from your email to your computer or cloud storage.

Receipts:
At the bare minimum, pile them somewhere. Keep them in a specific spot—on your desk, in an envelope, whatever works. Receipts can save your bacon in an audit. We've seen it happen.

Final thought:
Sometimes people are unorganized because they choose to be. The idea of structure and routines might feel stifling. There’s nothing wrong with that, and you shouldn’t beat yourself up or feel guilty about it. But you do need a solution in place. Most successful businesses have some form of organization. Even Walt Disney—an incredible creative—didn't become truly successful until he brought in his brother Roy, who handled the organizational side of things.

So, if you're a creative or unorganized person and the concept of structure makes your skin crawl, great—find someone you trust to handle it. That might be a bookkeeper, an accountant, a chief operating officer, or an office manager.

Hopefully these tips help. Remember: Profit is a choice. Have the courage and wisdom to choose it.