What kind of filing system do you have? Even a filing system that has not been determined and set up is still a filing system. Whether you have a paper filing system or computerized filing system or both organization and procedure is key to a successful filing system. A filing system will help you stay organized and efficient ensuring you get paid, that you pay your obligations as required and for managing your year-end process.
Deciding on how to file your client invoices will be determined on how often you need to refer to them. If you simply send the invoice out and never have to look at it again your invoicing software will likely be the only filing system you need for your outgoing invoices. The invoice software will file your client invoices by client and by invoice number. Your invoicing software may even file your client invoices by date.
If you have a more complex financial environment you may need to set up paper client files that include copies of client invoices. If you refer to the client file often sometimes it is easier to manage the client file by having the paperwork directly in front of you. Your filing system would then include your paper filing system for your clients. Would you have a centralized filing system for all client files or a decentralized filing system where client invoicing would be held separate from an account manager’s file?
For Accounts Payable invoices for purchases made a paper system is quite often kept. These paper files are held for backup to items entered into a financial software package and for backup should the tax department want to verify your expenses. Because the invoices did not originate from your system a file must be kept to verify their existence. Invoices could be scanned and filed electronically but a secure backup system would be needed in the event a computer should ever crash and information was lost for good.
Keeping an organized filing system will help save time as questions do arise as to an invoice to be paid by you or an invoice in question by your client. Having that information at your fingertips helps save time and is one way to create efficiency in your business.