Apr
04
2013

  It's All About the Classification Folders

I ordered a box of classification folders (these are heavy-duty pressboard folders with two dividers and six fasteners for papers) many years ago, thinking I would have a lifetime supply for my tax returns.

But now I'm thinking that I probably ordered a box of 10, and they lasted, oh, a decade. Not a lifetime, since I have enough paperwork that I cannot use less than one per year.

Last year was my first year without my special folders, and I gave a try to using another type of folder. Maybe it's been two years. But it has been unsatisfactory. I am going back to the classification folders.

I had never even seen folders like them until I worked at Arthur Andersen in the tax department there. That's what we used to organize our clients' returns with the associated backup and workpapers. So that's now what I use at home.

I think this year, I'm even going to make workpapers, at least for the LLC. I use TurboTax software for our personal return, and it prints out plenty of backup so I don't really need to organize it further. But the LLC is a chore, with all the investment stuff. We've got K-1s, mineral interests, wash sales, bleh. So this year, armed with the proper folder, I will endeavor to keep it all straight.