Mastering the Art of Organized Bookkeeping: Clearing the Clutter for Business Success

All business owners have busy lives. We understand the juggling act you face every day, trying to keep your business thriving amidst a whirlwind of tasks and responsibilities. Working closely with entrepreneurs and maintaining accurate and up-to-date records is our top priority. To achieve this, we rely on our clients to provide us with source documents for every financial transaction. Fortunately, ensuring seamless collaboration becomes a breeze when your office, email, and electronic documents are clean, uncluttered, and organized.

It’s time to take a closer look at your business and identify the messy areas that cause you stress and hinder your progress. By decluttering and stripping away what’s unnecessary, you’ll not only find what you need to share with your bookkeeper but also experience a newfound surge of energy, propelling you towards business growth like never before!
So grab your metaphorical broom and let’s get started on a transformative journey to rejuvenate your business.

Why is it important to declutter your business?

Here are 4 reasons why it’s important to declutter your business:

1 – Start on a clean slate: Clearing out the unnecessary clutter provides you with a fresh beginning. It allows you to create an organized and efficient workspace, setting the stage for increased productivity and success.

2 – Less clutter, less stress: A cluttered environment often leads to a cluttered mind. By decluttering your business, you can reduce stress levels and create a more calm and focused mindset. An organized space promotes clarity and enables you to tackle tasks with a sense of ease and purpose.

3 – Find what you need easily: When everything has its designated place, locating important documents, files, or resources becomes a breeze. Imagine the time saved by effortlessly accessing the information you need, allowing you to swiftly respond to clients, address inquiries, or collaborate with your team.

4 – Cleaning now saves time later: Taking the time to declutter your business today can save you precious time in the long run. By eliminating unnecessary distractions and creating efficient systems, you’ll experience smoother workflows, enhanced productivity, and reduced time spent searching for misplaced items. Investing in decluttering now will pay off dividends in terms of time and efficiency in the future.

Remember, decluttering your business is not just about tidying up physical spaces but also about optimizing your digital environment.

Areas of Clutter: Filing Cabinets in Your Office

Filing cabinets can quickly become a hotbed of clutter, leaving no room for new documents and causing unnecessary stress. Let’s tackle this issue head-on with a decluttering strategy:

1 – Sort and Organize:

• • Pull out all documents you no longer need and create piles.
  • KEEP: Gather all source documents that are required to be retained for six years, as per CRA guidelines. These documents serve as evidence of your business transactions. For more information on Books and Record Retention, refer to CRA’s official resource.
  • Box and store off-site for safekeeping.
  • Digitize what you can. Consider reaching out to Iron Mountain, who can assist you with this process.

2 – Recycle Non-Confidential Items:

• • Dispose of any documents that are no longer needed and are not confidential. Recycle them responsibly to free up valuable space.

3 – Shred Unnecessary Documents:

• • Safely shred any documents that are no longer required but contain confidential information. Protect your sensitive data by securely disposing of these papers.

4 – Set Up Year-End Folders:

• • Streamline the process of gathering essential end-of-year documents for your accountant by setting up dedicated folders. Some key folders to consider include:
    • Bank Statements
    • New Asset Purchases
    • Loan/Lease Documents
    • Insurance Documents

By decluttering your filing cabinets and implementing these practices, you’ll create space for new documents, alleviate stress, and establish an organized system that facilitates smooth operations and efficient record-keeping. Remember, an uncluttered space leads to a clutter-free mind and paves the way for a more productive and successful business journey.

Areas of Clutter: Email Inbox

Your email inbox can easily become a breeding ground for clutter, overwhelming you with an endless stream of messages. Let’s tackle this digital clutter with some effective strategies:

1 – Archive Old Emails:

• • Take the opportunity to start fresh by archiving all of your old emails. This will help declutter your inbox and provide a clean slate for future correspondence.
  • Going forward, make it a habit to archive or delete emails as soon as you have addressed them. This proactive approach will prevent your inbox from becoming inundated with unnecessary messages.

2 – Streamline Document Management with DEXT:

• • If you utilize DEXT to provide source documents to your bookkeeper, streamline the process by forwarding all documents that arrive as PDFs directly to your DEXT account via email as soon as they come in.
  • For suppliers who regularly send you bills that need to go to your bookkeeper, consider requesting that they send the bills directly to your DEXT account. This ensures a seamless flow of documents, reducing clutter in your email inbox.

Areas of Clutter: Customer Files

Managing your customer files effectively is crucial for maintaining a streamlined and organized business. Let’s explore strategies to declutter this area and enhance customer-related processes:

1 – Accounts Receivable (A/R):

• • Regularly review your A/R listings to prevent them from becoming messy and unmanageable.
  • Look out for old A/R amounts that are overdue and require attention:
    • Consider sending these delinquent accounts to a collection agency, allowing professionals to handle the collection process on your behalf.
    • Alternatively, if recovery seems unlikely, it may be appropriate to write off the outstanding balance as a loss.

2 – Eliminate Duplicate Customer Names:

• • Check your customer listing in the POS system to ensure there are no duplicate entries for the same customer under slightly different names.
  • Merge all names associated with the same customer into a single, correct name. This consolidation saves time when creating new sales transactions and when reviewing customer account balances.

Areas of Clutter: Supplier Files

Managing your supplier files is essential for maintaining efficient accounts payable processes. Let’s explore strategies to declutter this area and optimize your supplier management:

1 – Accounts Payable (A/P):

• • Regularly review your A/P listings to prevent them from becoming disorganized and overwhelming.
  • Pay attention to old entries that remain on the A/P listing:
    • Duplicates: If you identify duplicate entries, where the original one was paid but the duplicate one remains unpaid, it’s important to address them promptly. Seek advice from your bookkeeper or accountant on the best way to remove these duplicates from the listing.
    • Owner-paid bills: If you personally paid a bill instead of the business, but the bookkeeper wasn’t informed, these unpaid bills might still appear on the A/P listing. Consult with your bookkeeper or accountant to determine the appropriate steps for rectifying this situation.

2 – Eliminate Duplicate Vendor Names:

• • Take the time to review your vendor names and identify any duplicates or slight variations, such as “Home Depot” and “The Home Depot.” What a pain when a bill is recorded to Home Depot, and the Credit to “the” Home Depot!
  • Consolidate all duplicate names into a single, standardized entry. This cleanup will save you valuable time and avoid confusion when recording bills and credits, ensuring seamless accounting processes.

Areas of Clutter: Your Desk

Your desk is a central workspace that often accumulates various documents and clutter. Let’s explore strategies to declutter and organize your desk for improved productivity:

1 – File Documents:

• • Now that you have created space in your filing cabinet, it’s time to tackle the paperwork that has accumulated on or around your desk. File these documents promptly to ensure easy retrieval when needed.
  • Establish a systematic filing system that works for you, whether it’s organizing documents alphabetically, by project, or by date. Consistency is key to maintaining an organized desk space.

2 – Just Do It!

• • Procrastination can contribute to desk clutter and hinder your efficiency. Take a proactive approach by addressing tasks and documents as soon as possible.
  • Adopt a “just do it” mentality and tackle smaller tasks immediately. Respond to emails, complete quick assignments, and file documents promptly. This proactive approach prevents tasks from piling up and contributes to a clutter-free workspace.

3 – Clear Unnecessary Items:

• • Assess your desk for any unnecessary items that take up valuable space. Remove items that do not contribute to your current tasks or productivity.
  • Keep only essential items within reach, such as frequently used stationery, tools, and reference materials. Clearing your desk of unnecessary clutter creates a focused and efficient working environment.

4 – Establish a Daily Cleaning Routine:

• • Dedicate a few minutes each day to tidy up your desk. Put away items, file documents, and clear any debris or trash. This daily cleaning routine helps maintain an organized workspace and prevents clutter from accumulating over time.

Summing It Up

When you address areas of clutter, such as your filing cabinets, email inbox, customers, supplier files, and desk, you can create a more organized and efficient work environment. The rewards are significant: reduced stress, improved productivity, enhanced record-keeping, and streamlined processes.

Don’t underestimate the power of decluttering your workspace! By tidying up your physical and digital surroundings, you clear the path for greater focus, creativity, and growth. Embrace the “just do it” mentality and tackle tasks promptly, keeping your desk free from unnecessary items and maintaining a daily cleaning routine.

Remember, decluttering is not a one-time task—it’s an ongoing commitment. Continue to assess and refine your organizational systems, adapting them as your business evolves. Embrace the journey toward a clutter-free business, and empower yourself to focus on what truly matters: nurturing client relationships, driving growth, and achieving your entrepreneurial vision.

Let’s declutter, streamline, and thrive! Your business—and your peace of mind—deserve it.