In a world of 'the paperless office', files and folders should be obsolete. Every business needs to learn "how-to" manage records and organize documents. Small business owners are too afraid to throw anything away. Consequently, this leads to an overload of file folders, storage boxes, and ultimately a paper avalanche.

Business owners will tend to keep everything in an effort to avoid having to decide what to keep and what to pitch. In time, the storage room door cannot be opened and hope is all but lost for finding any documents that may be needed. It is the responsibility of management to make sure things remain organized to prevent lowered productivity or a complete shutdown of business operations.

"Most small businesses don't deal with their papers until it's too late," said Barbara Hemphill a well-known author on the subject of office efficiency. Paperwork piles up and documents are impossible to locate. If management and owners learned more about time management, paperwork would be in its place.

First Step to Organizing

Start by declaring an office cleanup day. All employees should pitch in and help organize any and all paperwork in the office. If at all possible schedule this on a day that you're normally closed to avoid any distractions. Paying your staff overtime for one day will be well worth it once you see the results.

It is possible to organize the office by yourself and even some true blue entrepreneurs have been known to set aside a day for the task.

The paperwork atop your desk needs to be first priority. Organize by subject and then date. After sorting is out of the way, it is time to put everything in its proper place. If file folders do not exist for some of the paperwork, then create some so there is a place for them.

Next, locate income statements, expense receipts, and sort them accordingly. Your accounting should be a priority. Record transactions into an accounting system or ledger until you're current. If you're like me, you could spend the majority of your day just entering transactions. Instead, end at a time that you can easily pickup from.

Upon organizing the paperwork into folders, you are going to require some boxes or perhaps some crates to store all the documents in for safekeeping. The particular way in which you file things will naturally be determined by the nature of your business. But, irrespective of the type of business you operate, all companies should file accounts payable and accounts receivable at the same time. The critical thins is that you have some kind of system for your filing.

Computerized Documentation

Fire or water can wreak havoc on a business if either of these two hazards reach critical documents. Businesses have coped with these dangers by investing in scanners so that they can digitize their physical documents.

Computer documents are easily accessible and easier to file on a CD or 3.5" floppy. Of course, if you want to be really high-tech, you can use an external hard drive to store your documents. CD's, floppies, and external hard drives should be stored in a fire resistant safe, or off the premises.

Online automated backup services are also available. For a small fee, you can backup computer documents to an offsite system. This is excellent for financial records. No financial business should be without a backup system.

Hemphill says that "Your ability to accomplish daily tasks is directly related to your ability to find the right information at the right time." If your office isn't currently organized make it your number one priority. It will save you time and money in the future.