Accounting Tip of the Day: To bind or not to bind

Posted by Bill Bockwoldt on November 19, 2010

One of the best time savers for dealing with the mass-quantities of documentation produced in accounting departments is to store your hardcopy support in binders by month.  Whenever we suggest this to new customers who have typically stored their documents in file cabinets spread amongst the various accounting staff we ALWAYS get the response that this sounds like a waste of time and a lot of work.  On the contrary - hunting down documents is a waste of time a more work.  Vibato recommends storing your month/quarter-end documents in binders that are tabbed out by topic (JE's, recons, bank statements, etc).  A colored piece of paper can be used in lieu of tabs if you don’t have any available.  What you will actually find when you start to use a binder is that you will have a heightened sense of how far along you are at any given moment and when you or your auditors need to reference old material, you'll know right were to go.  

Try it; you'll like it.  And in the words of David Hightower, Accounting Manager, Solar Power, Inc. (who was one of our most vocal opponents of this idea initially), "I don't know how I ever went without my binders!"

Tags: Accounting Tip of the Day