File/Organize Client Files

[Unregistered]

What system do you use to organize your client files?

Do you file them all alphabetically? Do you assign client numbers to everyone and file them by their client number? Do you use their social security or employer ID number?

Thanks!

[Black Bart]

Alphabetically in

used file folders in old filing cabinets -- no client numbers, SSNs, or EINs.

Now there's something I don't have any problems with, by George, 'cause it's simple as ABC. But! -- I keep mulling over how I'd like to do like some of the whiz kids on this board, i.e., put everything on disk (or whatever) and "clean out the closet." It's awfully tempting to think of shredding and burning all those stacks and stacks of space-squandering junk. Still, I can walk over to the file cabinet, pull out an old return, and flip through the pages in less than half the time it takes to pull up the return and electronically "page" through scanned items on-screen.

So! What to do? What to do? I just hate being pulled out of my rut (it's sooo comfortable there). Maybe those CS "File Cabinet" users have a clue.

[OldJack]

I also like the old file cabinets with A-Z filing. However, after a client has left me for a period of about 7-10± years I go through and pull those old files and record that I have destroyed the files on such a date (in my destruction 3 ring binder). I also keep tax return files on CD in pdf format but find that it is truly easier and faster to just go to the old paper file cabinet.

[Bird Legs]

Paper Files

Bart-Old Jack, I, too, like the paper files. Just the way I started out back in the dark ages, when tax returns were done by pencil & paper.
However, I am in a quandary. I have 1 more year left on my office lease. Will then
move everything to the house and do work there. There is not enough space, there,
for my file cabinets, hanging files, desk, etc. So, do either one of you, or any one else,
have any suggestions? Remember, I started doing tax work back in 1958.
Still have clients that started with me in the early & middle 1960s.

[Black Bart]

A fellow Jurassican,

I see.

I accumulated so much stuff that I literally ran out of room and had to start destroying them on the the three year expiration date (except for those with depreciable items and some potential "problem clients").

How long do you keep old 941s of former clients? Do you know if there's an expiration date on forms like that?

[Bird Legs]

941s, State & Federal Unemployment forms

Don't know about any expiration period on the above items. Seems like these should
not have to be kept more than 3 years, though.
Thought you were going to ask about the old 78 phonograph records.
used to have a lot of those around, along with an old crank Victrola to play them
on.

[Black Bart]

Hey, Bird

Didn't see you there (posted at same time). '58, eh? A pre-Jurassican. Oh, well; I'm not far behind you ('68 for me).

Actually I don't know how they do that stuff. I bought a cheap scanner from Wal-Mart a few months ago and scanned a few items into the "My Documents" file (or whatever it is) of my computer, but don't know how they handle a tax return. Looks like you'll need to do something alright, with that deadline facing you. This might be as good an excuse as any to learn how to do it if you're not planning on retiring anytime soon. If you're like me, I generally do these things when I have to do them and not a whole lot sooner.

I think it was Sova and...umm...maybe Bob W on the board here that had that computerized file cabinet program and they explained something about it a good while back -- I don't remember what, but I assume it's a computer program you buy either with or in addition to your tax program.

Is it hot there today (Texas, isn't it?)? 100 here.

[Black Bart]

Old tax returns - old phonograph records

Jack / Those returns I discard after three years are former clients' only. I keep all current clients, although I file the older ones (over ten years or as space dictates) up on a shelf.

Bird / I have three Elvis 78 RPM records (one in good shape -- two chipped). I don't know what they're worth. I saw a lady from Memphis on the "Antiques Road Show" and she had one he had signed on both sides. She had lived in his neigborhood in Memphis when he was first starting out, saw him on the street, and asked him to autograph her record. I believe the appraiser said it was worth from two to four thousand dollars.

Dad had a Victrola (from the company name of RCA Victor). Ours was a combination record-player and radio. It was only about a foot high, shaped with a downward-curving front and a flat back. It played by just opening a wooden door in front, sliding the record in, and closing it.

[Bird Legs]

Old RCA Victrola-78s

Our Victrola was a crank. You had to wind it up, then about half way through the record
it would start slowing down and you had to wind it up again.
Our phone, at that time, was also a crank phone. Our phone # was 2 longs and 1 short.
Am just taking a short break here at the desk, from working on sales tax reports, due the
20th and the quarterly payroll reports.

[Bird Legs]

Black Bart

Yes it is hot here. The highs will be anywhere from the high 90s to the low 100s.
It is also extremely dry. No significant rain. Our next chance for rain will be next
Friday, 20%, and Saturday, 20%. Maybe a hurricane will come through the Gulf
Coast and bring us some rain and cooler weather here.

[S T]

All payroll Documents

The requirement for record retention on payroll documents, including W-4, form 941 and form 940, W-2 forms, etc. is 4 years. I believe that is also true for the W-9 forms and 1099 forms.

Sandy

[Black Bart]

Jack / pdf format

I also keep tax return files on CD in pdf format

I know that IRS forms on their website are in that (pdf) format, but how do you put tax returns in it? Also, what's the advantage of that format over any other or just a "regular" format? Thanks.

[Unregistered]

Advantage of pdf

The ability to read pdf is free and publically available.

The disadvantages is that they can be rather large files, taking up a lot of hard drive space. And you better be sure you don't lose or corrupt the file. In other words you can't just back up your data, you need to take the time to test your backup to make sure you can still read it and it's not corrupted.

I personally have paper copies of everything and use the computer as my backup of my paper files (incase the office burns down or something). I backup my computer regularly, but I rely on my paper files.

[OldJack]

I know that IRS forms on their website are in that (pdf) format, but how do you put tax returns in it? Also, what's the advantage of that format over any other or just a "regular" format? Thanks.

There are a lot of programs that will produce pdf format files. The original program is Adobe Acrobat Pro (which I use) but that program is expensive compared to others now available. Pdf Factory is one. It basically is a "print driver" that you install and then you print from whatever/any program to the print driver and you get a file (that looks like what you print) that can be read by the free Adobe reader. The print driver is listed as a printer that you select when you print. The advantage of pdf format is the file can be read by anyone and it should look the same as you created it on your computer because the color, graphics, and fonts are embedded in the pdf file rather than using fonts on the readers computer. If you use ATX tax software it will save your tax return in pdf format.

[Bees Knees]

I use ProSeries, and it also has the option to save in PDF format.

I bought a laptop and portable scanner this year. I use to make paper copies of W-2s, 1099s, property tax statements, etc. Last year I got so tired of shredding old data, that I decided to switch to electronic.

I can scan about as fast as my copy machine can spit out copies. Now if I ever need the backup, it is on my computer, instead of wasting paper that 99% of the time never gets looked at ever again.

Plus with the size of hard drives these days, I figure I can store about a thousand years worth of tax data now without ever having to discard it to make room in my filing cabinets.